Legal Question in Real Estate Law in California

Re: grant deed

The difference between a grant deed and a quitclaim deed is that the former has the effect of the grantor (you) making guarantees regarding ownership and quality of title to the grantee (buyer/transferee), and the latter makes no guarantee whatsoever.

Neither type of instrument will have any effect on the mortgage (note and deed of trust) against the property. The person(s) who signed the note and gave the deed of trust will remain liable to the same extent as before, and the property will still be encumbered.

For this reason, old loans are often paid off in escrow when property changes hands. Sometimes, however, property is sold "subject to" existing financing, or the buyer "assumes" the existing financing. In either case, the lender (current note holder or trust deed beneficiary) needs to be notified and often must give express approval.

Any sale of financed real estate should utilize professionals who are familiar with the instruments used and their inter-relationship. Use a real estate broker or agent and an escrow company. The buyer should obtain title insurance.

Failure to follow the procedures could result in someone being liable for mortgage debt they didn't intend to keep (or take on) as a result of the improperly-documented transaction.

Re: grant deed

No matter which you use, you will still be responsible for the loan. Furthermore, if your loan has a "Due on Sale" clause, the lender can call the loan and demand immediate payment.

You should seek professional advice before you deed away property, no matter which method is used.

Re: grant deed

A very simple act if you know which are doing. If you don't it has tax effects which may be negative as well as legal effects which you may not anticipate. Therefore, you should not use any form. You should go to an attorney who deals in real estate/estate planning law and that attorney after you tell him the facts will probably be able to do what you wanted to do, protecting you from all the evils that you would impose upon yourself, for very little money. Given the nature of your question I would presuppose that you could screw this up in many different ways if you preceded by yourself.i have been practicing law in this speciality for over 30 years in the san francisco bay area and if you wish to consult with me you can contact me at 925-945-6000.