Legal Question in Real Estate Law in California
Someone is "gifting" a property to me, and I am filling out the Grant Deed myself. I was told there is a recital that needs to be on the deed for gifting properties, and that it should be typed on it like this:
"this is a bonafide gift and the grantor revceives nothing in return R&T 11911"
My question is Where on the Deed exactly do I type that recital? And do I need to type "Recital" above it? I do not see any deeds online with a recital typed on them, so I am a bit confused.
Thank you
2 Answers from Attorneys
You can add that type of language any where above the signatures on the deed. What needs to be done for the assessor/tax collector's office is to have the current owner of the property state that they are given the property as a gift to you without receiving anything in return. You do not need the word "recital".
"R&T" stands for the Revenue and Taxation Code.
As for placement of information having to do with payment of taxes and fees on the transfer, you can always ask the clerks at the recorder's office where they would rather see that information inserted. I'd say, usually pretty far up, towards the top.
I would also add my usual cautions to people giving or accepting real property as a gift:
1. Any transfer of real property will probably result in federal income tax consequences for the donor right away and for the donee later on.
2. If the gift has anything to do with estate planning, remember that 99.5% of the time the parties are better off using a will or trust than a gift.
3. Making a gift of real property to keep it out of the clutches of a current or possible future creditor is a fraud on the creditor, and when discovered (as most are), will result in a court setting the transfer aside and both transferor and transferee may be liable to the creditor for damages. Civil Code sections 3934 - 3934.12.