Mark W. Bidwell, Atttorney and CPA, Inactive
18831 Von Karman Avenue
Suite 270
Irvine, CA 92612
ph: 949-474-0961
fax: 949-474-0963
Mark
Quit claim deeds and affidavits prepared and recorded to:
Transfer of real estate property into a trust
Transfer out of trust due to death of owner
Add or remove a spouse as co-owner to real estate property
Add or remove a joint tenant
Give away a timeshare or other real property
What is a Quit Claim Deed?
A quit claim deed does not contain any implied warranties. The owner who quit-claims real estate simply conveys whatever ownership interest he or she has along with any debt or loans secured by the property. The quitclaim owner makes no promises and the property is taken “as is.” A quit claim is the easiest and cheapest way to transfer ownership to a trust, add or remove a co-owner or give away a timeshare.
Why File a Preliminary Change of Title Report?
Each county assessor's office in California reviews all recorded deeds for that county to determine which properties require reappraisal under the law. Proposition 13 requires the county assessor to reassess the property to its current fair market value as of the date the change.
Since property taxes are based on the assessed value of a property at the time of acquisition, a current market value that is higher than the previously assessed Proposition 13 adjusted base year value will increase the property taxes. But there are exclusions.
To obtain the exclusion, the grantee fills out a form for the county assessor entitled Preliminary Change of Ownership Report (PCOR). Examples of exclusions from reassessment are: transfers of real property between husband and wife, which include transfers in and out of a trust for the benefit of a spouse, the addition of a spouse on a deed, transfers upon the death of a spouse, and transfers pursuant to a divorce settlement or court order.
Why Record the Deed?
The deed must be made part of the public record so the world knows there has been a change of ownership. The deed must be recorded in the county where the real property is located.
Make it Legal
A properly prepared quit claim deed must have a legal description so the county recorder’s office can add the deed to the public chain of title. The legal description is not the street address. The legal description has at a minimum the map, tract, block and lot number of the real estate property. The county recorder will not accept a quit claim deed without a legal description.
Save Money
Deed and Record is the low cost provider in quitclaim deed preparation and recording. Save $250 compared to other online services.
California quit claim deed $149
Receive Personal Service
Now you can use the internet to have your quit claim deed prepared and recorded. With the internet you never leave your house while at the same time you receive personal service from a real person.
We provide internet service to change ownership or title in real property by quit claim deed.
Affidavits are prepared for death of joint tenant or death of trustee.
Service includes Preliminary Change of Ownership Report and filing all documents with the county recorder’s office.
Parent to Child Transfers and Grandparent to Grandchild Transfers
Real property and land transfers from parent to child and from grandparent to grandchild have documentary tax, property tax and capital gains tax traps and tax savings.
Change in California real estate ownership may incur documentary transfer tax and capital gains tax. Ownership changes may increase future property taxes. For simplicity, the term "parent-child exclusion" refers to both the parent-child exclusion and the grandparent-grandchild exclusion.
Change in ownership of real property increases the base for property tax. The increase is either the sale price or the market value at date of ownership change. California excludes the first $1 million plus the principal residence of the parents in parent-child transfers. ‘Claim for Reassessment Exclusion for Transfer between Parent and Child’ form must be filed within three years after the date of the transfer to obtain this exclusion.
Parent-child real property transfers do not incur capital gains tax. But the future sale of the real property will incur capital gains tax. The capital gains tax is on the difference between the parent’s purchase price to acquire the property and the sales price. The parent’s purchase price is adjusted for improvements to the property and depreciation, if any. The purchase price plus improvements less depreciation is the ‘basis’ for a capital gains tax.
A transfer while the parent is living is a gift. In legal jargon an ‘inter vivos’ gift. The purchase price paid by the parent, (the basis) transfers with the property. The child assumes the parent’s basis or purchase price in the property. Any future sale will incur a tax on the difference between the parent’s basis and the sales price.
A transfer or inheritance due to death receives a ‘step-up’ in basis. The parent’s purchase price or basis disappears. The new basis is the market value of the real estate on the date of death of the parent. A sale in the future incurs capital tax on the difference between the market value on date of parent’s death and the sales price.
The last tax on land and real property transfers is the documentary tax. This tax currently is $1.10 per thousand dollars plus any local government additions. The California Revenue and Taxation Code Section 11930 exempts all grants, assigns, transfers or conveys that are gifts or transfers due to death. But the grant deed or quit claim deed must state under penalty of perjury on the face of the deed this exemption to avoid the documentary tax.
Counties served
Copyright 2010-2012 Real Estate Title Transfer and Recording Service. All rights reserved.
Questions? E-mail to Mark@DeedAndRecord.com or call 949-474-0961
Mark W. Bidwell, Atttorney and CPA, Inactive
18831 Von Karman Avenue
Suite 270
Irvine, CA 92612
ph: 949-474-0961
fax: 949-474-0963
Mark