Legal Question in Real Estate Law in California

Recording Quitclaim with Pending Judgement

Hi,

I gift deeded my property to my father recently. The quitclaim was not notarized or recorded, as I thought I had ample time. Last week I was served with a suit from out of the blue-and I heard recording the transfer now could be prohibited-anything I can do? If it had been notarized, would that have made any difference?

Thanks!


Asked on 1/19/03, 1:29 am

2 Answers from Attorneys

Larry Rothman Larry Rothman & Associates

Re: Recording Quitclaim with Pending Judgement

At this time, it does not make any difference about the non-recording of the deed. You can still record the notarized deed at this time. Please call me at 714 363 0220 for free consultation concerning your lawsuit and I may suggest ways of resolving this case.

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Answered on 1/19/03, 5:31 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Recording Quitclaim with Pending Judgement

Your opportunity to record the deed is unaffected by the new lawsuit.

However, the story doesn't end there. If the lawsuit affects the right to ownership or possession of the property, and the plaintiff has filed and recorded a 'lis pendens' (or Notice of Pendency of Action), your delay in recording the quitclaim will doubtless render your father's rights to the property inferior and subject to the plaintiff's claims if he prevails in court. Your failure to record first may, therefore, have serious consequences.

On the other hand, if you had recorded first, but the gift transfer to your father was an attempt to shelter assets from a creditor, this is probably a fraudulent transfer under the Uniform Fraudulent Transfer Act (Civil Code sections 3439 et seq.) and could be voided by a court.

Either way, you and/or your father are at risk of losing the property to the plaintiff if you lose the lawsuit. You need to respond to the summons and complaint in timely and legally-proper fashion and defend, or, if you can, reach a settlement.

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Answered on 1/21/03, 1:59 pm


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