Legal Question in Real Estate Law in California

Quit claim between father and daughter

My daughter and I jointly own a residential piece of property. We are both signed on the mortgage and trust deed. She would like to transfer total legal ownership to me. She understands that she would be legally obligated for the existing mortgage, but wants her name off of the deed of trust. Can this be handled with a quit claim deed? Are there other concerns to consider in doing this? Are there other alternatives?


Asked on 2/06/08, 4:02 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Quit claim between father and daughter

A properly filled out and delivered quitclaim deed will effectively transfer whatever title the grantor has to the grantee. (I use the terms "grantor" and "grantee" loosely, since a "grant" isn't precisely what happens when the deed is a quitclaim).

Additional considerations: (1) the deed should be notarized and recorded; (2) make sure the legal description of the property is accurate; (3) review your note and deed of trust to see what they have to say about "due on sale or transfer of ownership" - if there is a due on sale clause of any kind, you'll need to get it waived, which may be easy, impossible, or just require payment of a fee.

Your question says "wants her name off of the deed of trust." If this is really the objective, the only way to accomplish this is to pay off the note secured by the deed of trust, and that usually requires refinancing. However, I think you probably meant to say "wants her name off of title."

Also note that while there may not be any property-tax reassessment from change of ownership because this is an intrafamily transfer, one or the other or both of you may have liability for federal and state gift and capital-gains taxes.

If the property is not a principal residence of one or the other, the exclusion from reassessment likely applies only to the first $1 million of fair market value.

Overall, I would say that I (and other LawGuru lawyers) could be a lot more helpful if we knew the motivation for this proposed transaction. There may be a cleaner way to accpomplish everyone's objectives.

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Answered on 2/06/08, 4:49 pm


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