What You Need to Know About California Gift Deeds: Forms & Requirements
Property transfers can be challenging to navigate in California. Here’s everything you need to know about California gift deeds: forms and requirements.
A gift deed is a document recording the transfer of ownership over the property from one party to another, in cases where the transferor (or ‘gift-giver’) does not require any payment for it from the recipient. In order for the transfer to be effective by law, both parties should sign the deed.
What Is a California Gift Deed?
Gift deeds convey title to real property from one party to another with no exchange of consideration, monetary or otherwise. Often used to transfer property between family members or to gift property as a charitable act or donation, these conveyances occur during the grantor’s lifetime. Gift deeds must contain language that explicitly states that no consideration is expected or required. Ambiguous language, or references to any type of consideration, can make the gift deed contestable in court.
Thus, a gift deed holds the purpose of creating a valid and documented record of the gifting of a good or property. A gift deed may also be evidence of the legal transfer of ownership of the goods or property from one party to another.
Related: What is an Interspousal Transfer Deed in California?
California Gift Deed Forms
The gift deed itself is the most important form to be executed. A draft of a gift deed must include the following details:
Place and date on which the gift deed is to be executed
Relevant information on the gift deed regarding the donor and the donee, such as their names, address, relationship, date of birth, and signatures
Complete details about the property for which you draft a gift deed
Two witnesses to bear testimony of the gift deed and their signatures
Thereafter, depending on the value determined by the state government, the gift deed must be printed on stamp paper after paying the required amount and the gift deed should be registered at the registrar or sub-registrar’s office.
Additionally, in California, every legal transfer of real property requires a Preliminary Change of Ownership Report. This form should be completed by the grantee and filed (Cal. R&T Code 480.3).
California Gift Deed Requirements
A lawful gift deed includes the grantor’s full name and marital status, as well as the grantee’s full name, marital status, vesting, and mailing address. It also describes how the grantee holds title to the property. Generally, real property is owned in either sole ownership or in co-ownership.
As with any conveyance of realty, a gift deed requires a complete legal description of the parcel. Recite the source of title to establish a clear chain of title, and detail any restrictions associated with the property. Each grantor must sign the deed in the presence of a notary public for a valid transfer.
Gift Deed: Important Clauses to Mention
Here are some important topics that might be worth mentioning in the gift deed so that it is not contested.
There’s no money or force involved
Make sure this consideration clause is added to the gift deed. It must be indicated that there is no exchange of money and that the gift deed is made solely out of choice and not due to money or coercion.
The grantor is the owner of your property when they gift
Only the owner can gift a property. If the grantor is not the owner (title holder) of the property, they cannot give a property as a gift deed to someone else, even in anticipation.
Describe the property
All information pertaining to the property, such as the structure, type of property, address, area, location, etc., must be mentioned in the property gift deed.
Relationship between the donor and the donee
If the donor and donee are blood relatives, some state governments may offer a concession on stamp duty. Regardless, it is important to establish the relationship between the donor and donee in the property gift deed.
Mention liabilities
If there are rights or liabilities attached to the gift, such as whether the donee can sell or lease the property, etc., such clauses should be mentioned in the gift deed.
Revocation of the gift
The donor can also mention clearly if they want a revocation clause to be adhered to the gift deed by the donee. Both the donor and donee must agree on this clause.
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If you or a loved one would like to learn more about California Gift Deeds: Forms & Requirements, get your free consultation with one of our Property Division Attorneys in California today!