Legal Question in Real Estate Law in California

If a person filed Chapter 7, received discharge and has upside down real estate that a lender wont take back via foreclosure or deed in lieu. Can they just record a deed granting title back to the bank to force the transfer?

I am curious if anyone knows if this is possible in California, as found an article at written by a Texas attorney who has done this type of title change. Article for reference is at: http://www.lonestarlandlaw.com/Deeding-Property.html


Asked on 3/18/10, 6:08 pm

2 Answers from Attorneys

In California delivery of a deed must be accepted in order for it to be a valid transfer of title. I'm not sure why, however, anyone would want to give property back to the bank that they don't have to pay for anymore.

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Answered on 3/23/10, 6:12 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Although delivery must be accepted, there is a rebuttable presumption of acceptance. Therefore, a trust deed beneficiary probably needs to take an affirmative step to reject the attempt to deed property to it. The process of recording a nonacceptance is covered in Civil Code section 1058.5.

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Answered on 3/24/10, 8:51 am


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