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?
Correct Answer
D) Adequate consideration paid by the grantee to the grantor
Consideration is NOT required for a valid deed in California. A deed can be a gift (such as transfers between family members). The essential elements of a valid deed are: competent grantor, identifiable grantee, granting clause (words of conveyance), legal description of the property, grantor's signature, and delivery and acceptance.
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Previous Question
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?
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Marcus is purchasing a condominium in San Francisco. The title company issues a preliminary title report showing a property tax lien from the previous owner. Marcus's agent explains the significance of this report. In California, what is the primary purpose of a preliminary title report?