Legal Question in Real Estate Law in California

Re: Quitclaim deed

Sometimes, the difference between three or four words in the text of a deed can make a big difference, as for example whether it is a grant deed with warranties attached or merely a quitclaim. However, if some legal stationer is offering two forms, one labeled "gift quitclaim deed" and the other labeled "quitclaim deed," I can't see how the choice to buy and use one, rather than the other, would have any legal significance.

I can't see the forms, and thus I can't comment on the actual differences here. However, I can tell you for sure that many gifts of real property are made quite successfully and properly using nothing more than a standard quitclaim deed form. Indeed, it is perfectly possible to make an effective gift of real property without using a preprinted form at all. At recording, the person receiving the gift and recording the deed will have to disclose the consideration paid ($0) for purposes of collecting the transfer tax, and thus the public record will disclose that this was a gift, irrespective of form.

What is important in preparing a deed is (1) if using a form at all, that it be one intended for use in California; (2) an accurate legal description of the piece of property involved and the interest therein being conveyed; (3) a granting or quitclaiming clause; (4) names of the transferor(s) and transferee(s) (which, with a grant deed, would be known as the grantor(s) and grantee(s)); (5) signature of the transferor(s); and (6) a notary's acknowlegment of the signature. Also, it is often (but not always)useful or necessary to indicate marital status and how the transferee will hold title.

Finally, I would say that the most important advice anyone making a gift of real property could obtain would be tax advice, especially respecting the property, gift and capital-gains taxes.

Re: Quitclaim deed

Sometimes, the difference between three or four words in the text of a deed can make a big difference, as for example whether it is a grant deed with warranties attached or merely a quitclaim. However, if some legal stationer is offering two forms, one labeled "gift quitclaim deed" and the other labeled "quitclaim deed," I can't see how the choice to buy and use one, rather than the other, would have any legal significance.

I can't see the forms, and thus I can't comment on the actual differences here. However, I can tell you for sure that many gifts of real property are made quite successfully and properly using nothing more than a standard quitclaim deed form. Indeed, it is perfectly possible to make an effective gift of real property without using a preprinted form at all. At recording, the person receiving the gift and recording the deed will have to disclose the consideration paid ($0) for purposes of collecting the transfer tax, and thus the public record will disclose that this was a gift, irrespective of form.

What is important in preparing a deed is (1) if using a form at all, that it be one intended for use in California; (2) an accurate legal description of the piece of property involved and the interest therein being conveyed; (3) a granting or quitclaiming clause; (4) names of the transferor(s) and transferee(s) (which, with a grant deed, would be known as the grantor(s) and grantee(s)); (5) signature of the transferor(s); and (6) a notary's acknowlegment of the signature. Also, it is often (but not always)useful or necessary to indicate marital status and how the transferee will hold title.

Finally, I would say that the most important advice anyone making a gift of real property could obtain would be tax advice, especially respecting the property, gift and capital-gains taxes.