Legal Question in Real Estate Law in California

by recording with the County Recorder the deed you were given. Then work with your chosen lender and do whatever they require.

If they did deed the property to you, that means you were put on title in their place. The lender would have been notified as it is a transfer of title; you need to go to the County Recorders office to see how title is actually held, as I suspect they either did not properly transfer title or the transfer was not filed. If the title was not transferred, you probably need to probate their estates [to determine if the house falls within the $100,000 exclusion for using the simple estate form you look at the value of the house and ignore any liens on it]. You probably will need an attorney to advise you on how to handle the probate; you want to be the administrator of the estate to avoid the probate fee. You will also have to notify the county assessors office but ask for the paperwork to exclude the sale from re-assessment as a parent to child transfer.

You need to read up on probate law [try the Nolo Press books] and consult an attorney once you know the status of the title.

A deed is valid to transfer title when (1) completely and properly filled out by the grantor, and (2) delivered to and accepted by the grantee. It is not necessary in California to notarize or record the deed to transfer title and an unrecorded deed is valid between the parties to it and others with actual or constructive notice of the deed. HOWEVER, an unrecorded deed doesn't give "notice to the world" and a third party without notice may obtain rights that will trump the unrecorded deed. Such third parties might be buyers from or lenders to your parents after they made the deed to you but before their deaths, or possibly heirs under a valid will. In sum, I'd say you have a strong case but you definitely need to see a lawyer soon to get this straightened out, including doing whatever necessary to have your parents' estate probated if necessary.