Legal Question in Real Estate Law in California

A document stating that someone has sold real property to someone else doesn't sell the property. The only way to sell real property is to, well, sell it.

Of course, the proper document to effect a sale, or a gift, is a deed. There are grant deeds, quitclaim deeds, and less often, other kinds such as a trustee's deed, a sheriff's deed, etc. When properly filled out, delivered and accepted, the property is transferred and the deed has done its work. Improperly filled out, the deed has created a possibility (or likelihood?) of future confusion, perhaps litigation.

A deed should be signed before a notary and recorded promptly. Unrecorded deeds are valid as between the parties thereto and other with knowledge thereof, but again, a likely source of future confusion and litigation. A bona fide purchaser (or lender) without knowledge of a prior unrecorded deed is likely to hold ownership, or a lien in the case of a lender, without regard to the effect of the unrecorded deed.

Irregular transactions such as gifts of real property and attempted transfers that don't disclose the real facts or aren't recorded are also likely to be fraudulent under the Uniform Fraudulent Transfer Act, Civil Code sections 3439 - 3439.12. The UFTA declares a transfer of property to be fraudulent if it tends to hinder, defraud or delay an existing or possible future creditor unless the transferor gets fair value in return.