Amy wants to add her adult daughter to the title of her California home as a gift. Amy's agent recommends using a grant deed. Before the transfer is legally effective, what must occur?
Correct Answer
B) The deed must be delivered to and accepted by the daughter
Under California law, a deed is not effective until it is delivered to and accepted by the grantee. Delivery requires the grantor's intent to immediately transfer title, and acceptance is presumed when the transfer is beneficial to the grantee. Recording is recommended but not required for the transfer to be valid between the parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
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- → Under California law, what is the consequence when a property buyer fails to file the Preliminary Change of Ownership Report (PCOR) at the time the deed is recorded?
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Previous Question
Kevin buys a home in Oakland and takes a CLTA standard coverage owner's policy at closing. Eight months later a contractor who had finished work for the prior owner before the sale records a mechanic's lien against the property. Nothing about that work or the contractor's claim appeared in the public record on the date Kevin's policy was issued. How is Kevin's claim under his policy most likely to be treated?
Next Question
A California real estate licensee is explaining the essential elements of a valid deed to a first-time buyer. Which of the following is NOT a requirement for a valid deed in California?