Legal Question in Real Estate Law in California

One simple approach is to take the fully-executed deed to the recorder's office at a time when they are not busy, and explain the transaction and it purposes to the clerks on duty, who will then, hopefully, tell you what's due, if anything, and why. I would suspect that if no money has changed hands and the surrender of the in-laws' ownership is a gift, there will be no transfer tax. The possible problem you'll face is that there may be a reassessment of the part interest that's changing hands, but if the value of the property hasn't changed, the effect on property taxes will be zilch.

There may, however, be a gift tax consequence.

�This is a bonafide gift and the grantor received nothing in return, R & T 11911.�

That should have been written on the grant deed from them to you. That is for situations in which no purchase money was paid between the grantor and grantee, and the transfer is a true gift.