Legal Question in Real Estate Law in California

Since nearly all homes are purchased from "private parties," I must assume that you mean "without assistance of a real estate professional" (agent/broker).

As in any real-estate transaction that isn't an all-cash deal, someone must act as a lender. This can be the seller, or the seller's uncle, or some rich guy the seller happens to know. However, more often, the financing is provided by a commercial lender, which then carries the note. Usually, it is the buyer's responsibility to find the lender, negotiate the loan terms, and arrange for the lender to deposit the loan proceeds in an escrow, along with the down-payment funds.

The type of deed you'll receive should be a grant deed signed before a notary by each of the selling owners. In some special circumstances, you may have agreed to accept a quitclaim deed rather than a grant deed, but I'd advise consulting with a lawyer before agreeing to accept less than a grant deed in the usual California format, signed before a notary by each seller (if there are more than one, e.g., a husband and wife). If the closing is handled by an escrow company, their officers will provide the deed form and generally will either prepare it per instructions or instruct the parties how to fill it out. In addition, it is customary for a buyer to purchase title insurance on the new property.

The same as anybody else, either a quit claim or a grant deed.

Mr. Roach is correct that you get a quitclaim or a grant deed just like any other sale. Mr. Whipple is correct that you should insist on a grant deed for a purchase transaction. What you didn't ask but is implied in your question is what security does the seller then have in the property. The answer is that you will give a Deed of Trust to the seller, just as you would a bank or any other commercial lender. You get a grant deed and give a deed of trust, just like any other real estate purchase that is not all cash.