Deed and Record: Real Estate Title Transfer and Recording Service
Mark W. Bidwell, Attorney at Law
4952 Warner
Suite 235
Huntington Beach, CA 92649
ph: 714-846-2888
Mark
California Grant Deeds Ready to begin? E-mail: Mark@DeedAndRecord.com Call: 714-846-2888
Save Money
Deed and Record is the low cost provider to prepare deedsand record the deed to change ownership of real property. Save $250 compared to other online services.
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.
- Call Mark at 714-846-2888
- Email Mark@DeedAndRecord.com
We also prepare Affidavits 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
Real property and land transfers from parent to child have property tax, capital gains tax and documentary tax traps and savings.
Property tax
A 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 a parent to child transfer, either by death or while living. But the transferee must be living at the house at time of transfer.
Capital Gains Tax
A transfer to a child while the parent is living is a gift. In legal jargon an ‘inter vivos’ gift. The purchashe 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 capital gains 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 as of the date of the parent’s death and the sales price.
Documentary Tax
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. To obtain this exemption the deed must state under penalty of perjury on its face the exemption claimed
Persons with a living trust but unfunded real property are at risk of probate.
Trusts must be funded with real property to avoid probate. Funding is by deed from the owner to the owner as trustee of his or her trust.
A deed is a document signed by the owner of the real property that transfers ownership. Deeds are either “warranty deed” “grant deed” or “quitclaim deed.” Grant deeds and warranty deeds by law have the owner’s promises he or she has not conveyed the property to someone else and the real property does not have any undisclosed taxes, loans, assessments or liens secured by the real property.
A quit claim deed conveys ownership “as is.” Quit claim deeds do not contain any implied warranties of debt outstanding or good title. These warranties are not needed to fund a trust because the transfer does not change ownership, only how the real property is titled or owned. A person is transferring property from himself or herself to his or her trust. No third party is involved.
The deed must be part of the public database maintained by each county in California. The deed is “recorded” in the county where the real property is located. Recording puts the world on notice how title is held and is the final word on ownership.
Transfers in and out of a trust are excluded from reappraisal and increase in property tax base. To obtain the exclusion, the grantee fills out a form for the county assessor entitled “Preliminary Change of Ownership Report” (PCOR).
There is no transfer tax on trust transfer deeds. California Revenue and Taxation Code exempts trust transfer deeds from transfer tax. To obtain this exemption the tax code must be stated on the deed.
Trusts are unfunded for the following reasons; real property was omitted when the trust was created, real property was acquired after the trust was created and real property was transferred out of trust by a lender for underwriting purposes. A trust transfer deed filed with the county recorder will remedy each of these problems.
On death of the owner the successor trustee transfers real property to beneficiaries identified in the trust. The successor trustee files an “Affidavit of Death of Trustee” with the county recorder. The affidavit allows the successor trustee to sell the real property or transfer ownership as directed in the trust. Transfer of ownership out of the trust is by deed.
Mark W. Bidwell, Attorney at Law
4952 Warner
Suite 235
Huntington Beach, CA 92649
ph: 714-846-2888
Mark