Legal Question in Real Estate Law in California
During a California divorce, I had an Inter-spousal Transfer Deed filed to take my X-wife off of the house title. Since then, the bank upon payoff of a loan filed a Reconveyance showing the Grantee as both myself and my X-wife (the loan was in both of our names). Did this 'undo' the Interspousal Transfer Deed, and does my X-wife now 'own' a piece of the title to my house again? How can I know for sure?
3 Answers from Attorneys
The reconveyance by the trustee relates back to the original power of sale that you and your wife gave the trustee under the deed of trust. She has since given you an interspousal transfer deed, and no longer is on title. She does not reacquire title by reason of the reconveyance.
Assuming the Interspousal Transfer Deed was valid, the reconveyance of the deed of trust does not give her any interest in the property. The best way to be certain of the state of title is to have a title company do a title report.
The reason the two prior answers are correct is the doctrine of after-acquired title. If I give you a deed to a property I don't own, but then the owner deeds it to me, it immediately becomes yours by law. Your ex deeded you a fee interest in the property, but she did not hold clear fee title. When the bank reconveyed the lien title to you both, her newly cleared interest legally merged with her prior encumbered interest to create free and clear title in you.
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