Legal Question in Real Estate Law in California

Chances are you do not want to transfer a house to a family member using a quitclaim deed unless they are buying it for full value, in which case you should use a title and escrow company for your paperwork. Transfers of real property not for full value can have catestrophic tax consequences and rarely effectively achieve the real underlying objectives of the transfer. I cannot think of a single situation in over 23 years of law practice where a straight deed from one family member to another was a good idea for accomplishing what the parties wanted to accomplish, except in a sale for full value. Even if you still want to do this, we would need to know who is transfering and who is receiving and what county the property is in, to fully answer the question.

A quitclaim deed will transfer ownership if properly filled out, signed and delivered. However, most lawyers counsel against transferring property between family members, especially from parent to child, as a gift, because there are serious short- and long-term tax consequences. If the objective is avoidance of probate, use a living trust.

In addition to gift and capital-gains tax impacts, there may be financing on the property that restricts or prohibits transfers of ownership interests. A transfer may be a fraud on existing or potential creditors of the transferor, if done for less than fair market value.

Deeding over the property surrenders control - you can't change your mind later on - which you can do with a revocable trust.

Making a mistake in the wording of the deed can create title confusion.

I advise discussing your objectives with an attorney who works in the area of estate planning, wealth management, taxation, or real estate.