Legal Question in Real Estate Law in California

Re: Real Estate and Property

The issue boils down to title insurance. When your uncle transferred the property to your mother and a family friend, he transferred all of the interest in the property he legally could transfer. Unfortunately, because he is married, his wife MAY have a community property interest in the property that isn't necessarily "of record" (recorded at the County Recorder's Office). In theory, she may have some sort of claim to the interest he had in the property before it was transferred, and therefore, unless she signs a Interspousal transfer deed or a Quitclaim, her potential interest in the property WAS NOT transferred by your uncle's deed. So, the lender isn't actually the one who wants the deed from the wife. The lender wants a clean title insurance policy which ensures that your mother and family friend are the ONLY people who have a legal claim to title of the property. As such, the title company will only insure title as the lender wants it IF the aunt signs off on any potential legal interest she may have. I hope this explains why the deed is necessary - I'm not sure I agree with Attorney McCoy that you could obtain specific performance requiring the aunt to sign-off - if the property was a gift it was only a gift of the interest in the property your uncle owned, not necessarily of the wife's interest and therefore your mother and family friend aren't really in a position to demand specific performance (contrasted with a situation where they actually bought the property, then they could insist on the deed and get specific performance). I don't know if this will help persuade them to sign, but at least you can explain why its necessary.

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Re: Real Estate and Property

Yes, you can do something to make them sign. It is called a specific performance judgment.