Legal Question in Real Estate Law in California

Re: Transfer Less than 100% Ownership

You can use a quitclaim (not 'quick claim') deed or a grant deed. In California, a grant deed is a kind of warranty deed in common use, so the term 'warranty deed' is used infrequently.

The difference between a quitclaim deed and a grant deed is the quality of title the grantor intends to convey to the grantee, and not the quantity. A grant deed says 'I guarantee I have good title,' whereas a quitclaim deed says 'I'm selling you whatever I have, which may be anywhere between an unchallenged fee simple absolute and no title whatsoever.

So, either one can be used to convey a portion of your interest.

The main thing you have to do with either form is to put the correct information in the blanks. This is what experienced lawyers are good at -- but so are title companies, some real estate brokers, a few real estate agents, paralegals and real-estate speculators.

The terminology would be something like, "I, John Doe, grant to Jane Roe a one-half undivided interest in that real property situated in ______ County, State of California, bounded (or described) as follows: (here insert legal property description). Witness my hand this (insert day) day of (insert month) 20__ ."

This will make you tenants in common, which is the more common way for persons who are not married to each other to hold land as cotenants. The other way, joint tenancy, is somewhat more complex.

It is commonplace nowadays to indicate the marital status of each party to a deed, e.g., "John Doe, an unmarried man" or John Doe, husband, to Mary Roe, my wife" or "Mary Roe, a married woman dealing with her sole and separate property."

Your marital status does not, however, affect the choice of deed form (grant vs. quitclaim). However, married persons have to deal with one another with the highest good faith and fair dealing, whereas unmarried folks deal at arms' length and have lesser duties of good faith.

Before transferring an interest in real property, consider carefully why you are doing this and how the deal can be unwound if your reasons for doing the deal change in the future. If you are getting a fair price, fine; but most people who are transferring half interests are either making gifts to girlfriends or trying to hide assets from creditors. I have a fairly steady stream of clients with these two sets of situations gone sour. The relationship breaks up, or the creditors use the anti-fraudulent-transfer laws. There are also income and property tax considerations. The transferred interest will be re-appraised (except in certain marital and close family situations) and will probably get a stepped-up income tax basis. Another common problem is that the transfer triggers a due-on-sale clause in the grantor's mortgage, which suddenly becomes due in full.

So, see a lawyer and get tax advice, then write or have written a contract spelling out each co-owner's rights and responsibilities.

Re: Transfer Less than 100% Ownership

first do not do it your self as there are potentially substantial tax remifactions to the transfer as well a relinquishing forever of certain legal rights which you may wish to address and become aware of before you do the transfer before its too late -- trust me --- see an attorney who is expert in real estate law/ estate planning or talk to your cpa if you have one ---- I have been practicing law in the San Francisco Bay area for approximately 35 years and expert in the area in the category in which your question is placed. I feel I can help you in this matter and if you wish to consult with me please contact me at 925-945- 6000.