Legal Question in Real Estate Law in California

Whether your husband figures in to the situation probably depends upon whether any "mortgage" payments have been made from community funds since your marriage. Community funds would include wages and salaries either your husband or you earned while married. Use of community funds to make equity payments would give rise to a (small) ownership interest by your marital community, requiring your husband to be named as a seller on the deed to your sister, and to sign the deed. Sounds as though you want to transfer ownership as a gift, which is also OK, but your husband should join in making the gift. You probably should get some assistance from an attorney or real estate licensee for drafting the gift deed, as it's pretty easy to make a mistake if drafting your own deed or using an on-line form or stationery-store blank deed form. It may be simpler to sell your interests for a dollar each than to do a gift deed. Finally, there may be income-tax consequences of the choice to make a gift or sell for $1, and therefore a talk with your tax advisor might be beneficial.