Legal Question in Real Estate Law in California

Re: Selling rental home to daughter - but not son-in-law

Dear Inquirer:

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NOW, IN RESPONSE TO YOUR INQUIRY --

A gift made specifically and solely to one spouse by a third party, and not comingled, is usually considered to be that spouse's separate property. This would best be evidenced by the title AND a written acknowledgement and agreement executed by your son-in-law. (See Cal Fam Code �760 et seq.)

Thanks for sharing your interesting inquiry with us on LawGuru, and good luck with your case.

Re: Selling rental home to daughter - but not son-in-law

Your lender, if professional, can be of some assistance, as well as your title company. Keep in mind that you will be adding your daughter's name to title on the property as well as to the loan.

The loan-application and credit-granting processes will raise some issues, which an experienced lender will be able to work out for you. Be candid with everyone about your intentions and expectations, and have the papers drawn up by pros at a title company of your choice or that meets your approval.

They may require or recommend a quitclaim deed, but in a theoretical sense a properly-documented gift does not require a quitclaim in order to accomplish the objective of separate (and not community) property.

Your son-in-law might acquire a gradual 'pro tanto' community interest IF community funds are thereafter used to make principal payments on the loan.

If in doubt about any aspect, see a local family-law attorney.