Legal Question in Real Estate Law in California

Re: Real estate deed

Filling out a deed is not quite so simple as completing the usual form. In addition to the "bare facts" that will be needed, you also need to surround them with a little legalese and provide some information for the tax assessor.

The factual information needed is: (1) name of grantor (you); (2) name of grantee (her); (3) nature of estate being granted (a half interest, I suppose); (4) how title will be held (several possibilities); (5) legal description of property (be VERY careful to get it 100% accurate).

I strongly recommend using a local lawyer with a little real-estate experience to assist you. Other possibilities include going to the County Recorder's office and looking at a dozen or so already-recorded grant deeds to see how they are worded, being sure to find at least a few that are grants of a half interest to a spouse.

Another possibility would be to get help from an ecrow and title company or even a local real-estate broker.

By the way, you should make sure that granting a half interest to your wife is OK with your lender(s). Many loan agreements have so-called "due on sale" clauses that make the balance due in full if the borrower sells or gives away the property, or an interest therein. Usually they won't mind transferring a half interest to a spouse, but you should get a written waiver of the clause if there is one, just be be sure.

Finally, have you considered possible tax consequences? An interspousal transfer should be free from documentary transfer tax and should not trigger a property-tax reassessment. However, I'm not a tax practitioner and I don't know whether a transfer from husband to wife has any gift or future capital-gains consequences. It might even depend upon whether you file jointly or separately.