Legal Question in Real Estate Law in California

The first question is, why did they do that? If this was for estate planning purposes, it may not be the best way to go. It is usually damaging from a tax stand point.

If your parents want to add you so you and they will be joint tenants, you must each own 1/3. If they add you as tenants in common, then the percentage must be specified in the deed and can be any percentage. If they make you and them joint tenants, that cannot be changed by a will. When one dies, the title would automatically revert to 50% tenants in common between the two survivors (even if it is your parents after you got hit by a bus). If you became tenants in common as the form of title when they give you part of the property, your percentage can be increased by inheriting more from them in a will, but your percentage could not bre reduced, and if you died first, your heir(s) would get the percentage you owned when you died. It would not revert back to them like it would in joint tenants.

With all that said, however, Mr. Koenen is right that there can be significant tax disadvantages to your parents deeding you any part of their property while they are alive, and again later when you ever go to sell. If they have a mortgage, it may also be an event of default to deed the property or any part to anyone else.