A property owner executes and delivers a deed transferring a parcel of land to a local nonprofit organization as a gift, with no money or other consideration exchanged. Under California law, which of the following best describes the validity of this transfer?
Correct Answer
D) Valid, because California law recognizes gift deeds as effective without monetary consideration provided the deed is delivered and accepted
Under California Civil Code §1146, a grant of real property does not require monetary consideration to be valid. A gift deed is legally effective in California when the grantor intends to transfer title, the deed is delivered to the grantee, and the grantee accepts it. These elements satisfy the requirements for a valid conveyance without any exchange of money.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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