Legal Question in Real Estate Law in California

Re: quit claim deed scenario

There is no need to "witness" a deed. The signature of the Grantor must, though, be acknowledged to a Notary Public or it can't be recorded. A business entity, assuming it is an LLC, LLP, Limite Partnership, or Corporation, or Partnership is an entity for purposes of ownership of title. If it is a partnership I'd hold titles as "Partner1 and Partner2, as tenants in Partnership". As far a rights to the property, sure, but those rights will have to be traced through the entity.

Re: quit claim deed scenario

I agree 100% with Mr. Roth. I'd add that if "old name of business" and "new name of business" refer to the SAME business, and it has only changed its name, no action is necessary. When the business eventually sells the property, the deed to the new third-party buyer must comply with Civil Code 1096 (i.e., show not only the current name but also the name under which title was originally acquired). This usually affects women who get married and change their names, but it would also apply to a business entity (LLC, corporation, partnership, etc.) that changed its name. Business entities are "persons" in the eyes of the law.

If the business is a sole proprietorship, the situation is a little different; a proprietorship is not an entity; it has no separate existence from the proprietor; and real property used in a business should be titled in the name of the individual, not the fictitious name of the business. (For that matter, no business entity should hold title in a fictitious name; a corporation that also has a fictitious name should take and hold title in its real corporate name as filed with the Secretary of State.)

Having said all that, it is perfectly OK for a business entity to transfer title acquired as "ABC, Inc." to itself as "XYZ, Inc." if it wants the public record to reflect its current name for some reason. Such a transfer can be done by quitclaim deed. Doing so, however, might cause the entity some problems that would require explanation and clearing up, such as demonstrating that the property should not be reassessed for property-tax purposes and/or that there was no taxable gain or loss for income tax purposes.