Considerations When Preparing A Deed
Most people are aware that a deed is a legal document which transfers ownership to real estate. To be fully effective, deeds must be signed, notarized and recorded in the county recorder’s office of the county where the property is located. In addition, a Preliminary Change of Ownership form is required.
There are three primary types of deeds, grant deeds, quitclaim deeds, and gift deeds. A deed of trust is a mortgage and does not transfer title. It is used when the parties wish to use land as collateral for a loan.
There are four primary considerations in completing a deed of real estate.
First, to whom is the property being transferred. The name or names should be spelled correctly. Also, the capacity of the person taking title should be specified, such as a “single person,” “joint tenant,” or other designation.
Second, all deeds must have a “legal” description of the property. The legal description is the county’s description of the land involved. It is not just the current address.
Third, the documentary transfer tax should be considered. This is a tax required by the county or city based upon the value of the real estate involved.
Fourth, the transaction itself should be considered for tax consequences. We charge an affordable attorney fee for review and drafting of all California deeds.