Legal Question in Real Estate Law in California

Re: setting up a joint tenancy

You may want to first speak to an attorney. Once you add someone, the decision is usually irreversible. If you break up, your partner has a claim on half. You may want to consider a will or a trust, along with powers of attorney, which affords you much greater flexibility.

Re: setting up a joint tenancy

This is a perilous journey, and I strongly advise entering into a written contract beforehand, spelling out how the deal is to be unwound when the two of you no longer live together, whether by choice or when death do you part. I have spent about half my legal career unscrambling these eggs. Ideally, your contract should cover who makes the down payment; how responsibility for mortgage payments will be split (including mention of whose credit rating is relied upon); who pays for taxes, insurance and upkeep; whether anyone gets a credit for 'sweat equity;' whether there will be guests, roommates and/or businesses run from the home; who provides or chooses the furnishings and colors; and maybe a buy-sell provision to avoid court (or assure the right outcome in court) when the relationship ends. The contract should state whether either makes a gift of any interest in the property, or if each gets the interest paid for, or reflected in the deed.

Next, you should see whether the proposed transfer will offend any covenant or "due on sale" clause in your loan.

You should also consider whether the transfer will trigger a reassessment for property tax purposes and/or a capital gain or loss for IRS purposes. If the property was recently acquired, the impacts are likely to be small.

Once you have the contract, preferably drafted with the assistance of an attorney, and lender and tax issues handled, then you can transfer the half interest (or whatever) by either quitclaim or grant deed. I suggest using an attorney or a title company to handle the paperwork and record the finished document. You may want to discuss the availability of title insurance for the new co-owner.

Next, I notice you specify a desire to create a joint tenancy. This is possible under modern law, but most unrelated co-owners choose to be tenants in common rather than joint tenants. The differences affect inheritance rights, and your choice of one or the other should be based upon a clear understanding of the differences.

Finally, the suggestion (by attorney Schomer) to consider a trust rather than shared legal title to accomplish your goals is sound, and should be given consideration.

Re: setting up a joint tenancy

You would create a Quit Claim deed granting the type of tenency you desire.

Our firm specializes in this particular area. Please feel free to contact me at 626-578-0708 or online at www.SameSexRights.com.

Re: setting up a joint tenancy

Don't do it. Get a domestic partnership trust or a trust for each. You can get this done expertly for as little as $400, and it will include the transfer documents to transfer the property into the name of the trust.

There are lots of other reasons to do this as well. Too numerous to mention in this answer.