Transferring property in california
How Real Property is Transferred in California
California law expressly provides that an estate in real property can be transferred by (1) by operation at law or (2) an instrument in writing and subscribed by the party disposing of the property. A written instrument conveying or transferring title to real property is called a deed. To be valid a deed it must be in writing, contain the name of the grantor, contain the name of the grantee, contain a description of the subject property that is sufficient to identify and locate that property, and language indicating an intent to convey the property. In California, there are four principal types of deeds:
(1) The Grant Deed: The grant deed is by far the most frequently used type of deed, because it is the deed most acceptable to both grantors and grantees. A grant deed states that one person grants an interest in real property to another. A grant deed can be used to transfer any kind of estate in real property. The grant deed requires the grantor to make certain limited warranties and covenants.
(2) The Quitclaim Deed: A quitclaim deed conveys whatever present right or interest, whether legal or equitable, the grantor has in the property conveyed at the time of the conveyance. The quitclaim deed is the second most popular deed in California and is most often used for transfers of real property among friends and relatives when the grantee does not seek any personal guarantees. They can also be used in transfers of real property by gift of in transfers made for the purpose of unclouding title to real property.
(3) Warranty Deeds: A warranty deed is a deed that contains an express covenant of warranty. The warranty provides the grantor will compensate the grantee upon the failure of the grantee’s title by reason of a third party’s superior title. A covenant of warranty is made for the benefit of the property and runs with the land, this means grantor is liable to those who purchase from the grantee as well as the grantee.
(4) Deeds Given at Judicial Sales: A deed received by a buyer at a judicial sale is similar to a quitclaim deed. Therefore, buyers should collect as much information about the property as possible. These sales are held pursuant to court orders and the sale becomes complete once confirmed by the court.
Transferring by Operation of Law: If a person has agreed to transfer property but has failed to do so, the property may be transferred by the creation of a constructive or involuntary trust. A person who gains property by fraud, accident, mistake, undue influence, or other wrongful acts is an involuntary trustee of the property.
Transfer Upon Death Without a Trust: When a person passes away, the title to his or her property will pass to the person to whom it is bequeathed (given to via a will) or, in the absence of such disposition, the persons who are entitled under the California laws of succession. However, the property is subject to the possession of the decedent’s personal representative and to the control of the Probate Court for purposes of administration.
If you need advice on transferring real property in California or a transfer that has already occurred contact Bennett & Demera LLP at (559) 981-2588 or hello@bennettdemera.com.