Legal Question in Real Estate Law in California

Your explanation of what you did, and the title company's objection to it, do not add up. There is still some erroneous "fact," or missing piece, in the story.

One possibly major problem I see is the attempt to convey to yourself as successor trustee. Usually, a successor trustee becomes such upon the death of the grantor trustee.

The property would have to have been "already titled to the trust" in order for you convey title from your mother as trustee to yourself as successor trustee.

The problem here seems to be failing to distinguish the trust itself from the identity of the trustee. You don't use a deed to transfer property from "Trust X, ABC Trustee" to "Trust X, DEF Trustee." Further, your power of attorney may not include the power to remove your mother as trustee of her trust and substitute yourself.

Finally, recorded deeds can't be canceled. Even unrecorded deeds, once delivered by the grantor to the grantee, cannot be un-done by tearing them up or burning them, even if both the grantor and the grantee realize there was a mistake and fully intend to un-do the transfer. The transfer happened upon delivery of the deed (if the grantor had anything to transfer, which maybe you didn't in this case) and can be reversed only by a reversing deed exactly granting back what was erroneously granted, and nothing more. Figuring out what to grant back may be tricky, to avoid granting back too much. Another approach, possibly safer, is to petition a court to cancel the erroneous deed. There is a recognized cause of action in California for "cancellation of instrument."

As to an "affidavit of change of trustee," Ithink you should consult counsel with expertise in the area of wills, trusts and estates for an opinion on whether circumstances permit you to step into the role of trustee as successor to your mother. I have serious doubts about this.

The title company is in the business of insuring clear title. The lender is in the business of only making loans on property with clear title. Rather than trying to figure this out yourself, I recommend that you ask the lender and the title company what, if anything, their underwriters require for the transaction to go forward. It may be nothing, since many errant deeds are nulties and just sit there in the public record ignored.