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Doing Good Deeds

One of the most requested services that I offer my clients is deed preparation and recording. If you need help adding or removing a spouse, transferring your property to your trust, adding a child or preparing a Transfer on Death Deed please reach out to discuss how I can help you.


Below is some helpful information for the most common deed questions that come up day in and day out in my business, hopefully this will help you understand what types of deeds there are, how to hold title and some useful information on avoiding being overcharged and possibly reassessed.


Types of Deeds

Grant Deed: Used to transfer property from a sale or a gift, add an owner to title, transfer property into or out of a Trust, change form of title, update an owner's name.


Quitclaim Deed: Used to waive claim or possible claim to real estate, whether or not you are currently on title. Sometimes used after divorce to transfer property to other spouse, to waive claim to another spouse's separate property, to waive potential inheritance rights.


Interspousal Deed: Used by spouses and domestic partners to change property from separate to community property, adding a spouse after marriage, or removing spouse due to divorce/separation.


Be aware of repercussions of recording a deed on your property, here are some issues to consider:

  1. Will the property be reassessed when the deed is recorded?

  2. Will the transfer be subject to the SB2 Jobs & Homes Act fee?

  3. How will you hold title?

Reassessment

Generally there are several reasons that can be used to avoid the County Assessor's Office from reassessing your property, some exclusions include:

  • Transfer from husband to wife or vice versa

  • Transfer from parents to children or grandparent to grandchild

  • Transfer to/from a living trust

  • Transfer on death of cotenant

  • Corrections to Names

SB2 Exemptions

There are some exclusions to the SB2 fee of $75.00 and they are as follows:

  • If the property is owner occupied.

  • If you are subject to the documentary transfer tax.

  • If you have already reached the $225.00 cap, the next document will not be subject to the SB2 fee.

Holding Title


Unmarried Persons:

  • Joint Tenants: Owner can sell or give their share of the property without permission from the other joint tenant. New owner is considered a tenant in common. The benefit of holding title as Joint Tenants is that if the joint tenant passes away the property passes to the other joint tenant avoiding probate.

  • Tenants in Common: Owner can sell or give their share of the property without permission from the other owner. If the property is not in a Trust and the owner passes away it does not automatically pass to the other tenant, it will have to pass through probate.

Married or Registered Domestic Partners:

  • Joint Tenants: Owner can sell or give their share of the property without permission from the other joint tenant. New owner is considered a tenant in common. The benefit of holding title as Joint Tenants is that if the joint tenant passes away the property passes to the other joint tenant avoiding probate.

  • Community Property: Both spouses must sign off on a gift, sale or transfer. This may also have to go through probate if one spouse passes away. This can get tricky if it is a second marriage and there are children from a previous relationship. There is no right of survivorship when you hold title this way.

  • Community Property with Right of Survivorship: Both spouses must sign off on a gift, sale or transfer. There is a survivorship benefit of holding title this way, it will not have to go through probate proceedings, the property will automatically pass to the surviving spouse. There are tax advantages to holding title this way for married couples as opposed to joint tenancy.

  • As a Married Person as his/her separate property: Some couples inherit property or have separate business dealings and want to keep their property separate

*You can also hold title to your property as Trustee of your Living Trust.


I hope this information helps clarify some important considerations when making changes to any real property deeds. If Diablo LDA can help, please reach out for a complimentary consultation at (925) 336-5711.


*I am not an attorney, I cannot give legal advice or represent you in court. I can provide self-help services at your specific direction.




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Diablo Document Preparation

3478 Buskirk Avenue, Suite 1000

Pleasant Hill, CA 94523

Please Schedule Appointment

Email: jessicarward@sbcglobal.net

Tel: (925) 336-5711

Monday-Friday: 9:00 am - 6:00 pm

Saturday: By Appt Only

Non-Attorney Disclosure: I am not an attorney. I can only provide self-help services at your specific direction. If you require legal advice, please contact an attorney. 

 

Jessica Ward is Bonded and Registered in Contra Costa County LDA #163, Exp. 01/07/2022

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