Legal Question in Real Estate Law in California

Re: Grant Deed

I'm 99% sure you're confusing terms. Ordinary legal title to real property is reflected by recorded deeds. A deed of trust conveys only a special kind of interest (equitable title).

Therefore, let me assume that what you mean to ask is whether and how you can add your mother to legal title of property you already own exclusively, and which is encumbered by a note and deed of trust, also in your name only.

Whether the lender can do anything or not depends upon whether the note (or the deed of trust) contains a due-on-sale clause. Many, but not all, do contain such a provision.

If so, you have two alternatives. You can get a written waiver from the lender. If this doesn't work, you can refinance at the same time you convey the half interest to your mother.

A question may arise as to why you would want to do this. Is your mother paying fair value for a half interest? If not, your motives might be questioned (i.e. are you avoiding creditors) or you may have gift-tax problems.

You should probably get advice from a local real estate attorney who also knows tax law. There are several possible legal pitfalls for you.

Re: Grant Deed

Mr. Whipple is exactly correct. It sounds to me that you want to change title to add your mother for the purpose of allowing the property to go to her upon you death. If that is the case, you are going about it the wrong way. You should set up a revocable trust and specify in the trust what is to happen to your property upon you death or incapacity. You can get a well drafted trust for as low as $399 together with other documents you should have such as an Advance Healthcare Directive. Call me if you want advice of how you can get these documents drafted at a $399 price.