Legal Question in Real Estate Law in California

Documentary Transfer Tax

I am refinancing my house that I co-own with my brother. My brother is willing to sign a grant deed conveying the property to me. Do I need to pay the documentary transfer tax if I pay him his share of the fair market value of the house? On the other hand, if I gift it to him, does my brother have to pay a gift tax to the federal government?

I also want to make sure that his wife does not later make a claim against the property. (The property is in Hayward and she is not on title) What should I do?


Asked on 3/11/06, 11:58 am

2 Answers from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Documentary Transfer Tax

You should be more concerned about an increase of property taxes after the transfer. Depending on how you hold title, there could be a substantial increase in property taxes.

Someone needs to review your deed and structure a transaction appropriately.

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Answered on 3/11/06, 2:50 pm
Michael Olden Law Offices of Michael A. Olden

Re: Documentary Transfer Tax

see an attorney who has expertise in real estate transactions -- as you can see there are issues you have no idea about and you should not do this yourself -- the money you pay the attorney is well worth the problems you or your heirs have in the future

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Answered on 3/12/06, 7:01 am


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