Legal Question in Real Estate Law in California
Grant Deed completion
I want to give approximately one acre of my rural property to the adjoining property owner and I am trying to complete my own Grant Deed. There are no buildings on this land. No money will change hands. Is this transfer exempt from documentary transfer tax? If not, how is the tax figured? The Grant Deed states ''For a valuable consideration, receipt of which is acknowledged.'' How do I handle this statement when there is no ''valuable consideration''?
Any assistance will be greatly appreciated. - Ken
1 Answer from Attorneys
Re: Grant Deed completion
If your 1 acre is a part of a larger portion of your land, you cannot just give it to the neighbor without subdividing that portion from the remainder of the property, meaning you must get permission from the county. There will be an expense, because you will need to get a survey, have someone draw a new map and then present it to the county for approval. This will take at least 6 months.
There could be a transfer tax based upon the fair market value of the property, and there will be a reassessment of property taxes to the new owner, due to change in ownership.
It does not sound as if you really understand all of the implications and intricacies involved in the kind of transaction you are doing. I would suggest that you obtain some professional advice.
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