How To Transfer A Property From Parent To Child
Whether it's for estate planning purposes, gifting, or other personal reasons, it’s not uncommon for parents to transfer a piece of property to their children. The transfer process can be a bit arduous. It involves several procedural steps and various legal documents. A licensed notary public plays a crucial role in ensuring the documents are completed correctly and signed accurately. In this brief article, we will walk you through the process of transferring a California property from parent to child , and explain exactly how The Bay Area Notary can help.
Step 1: Understanding the Different Transfer Methods
Before diving into the specifics, it's essential to understand the different ways in which you can transfer property here in the state of California. The three most common methods are:
Gift Deed: This involves a parent willingly transferring the property to their child without any monetary exchange.
Quitclaim Deed: A parent transfers their ownership interest in the property to their child. This method is often used when no money changes hands; such as an intra-family transfer.
Grant Deed: This is a more formal method which guarantees the parent holds a clear title to the property and conveys it to their child with certain warranties.
The choice of method depends on the specific circumstances of the transfer.
Step 2: Preparing the Necessary Documents
Once the method of transfer is decided upon, the next step is to prepare the necessary documents. This typically includes:
The Deed: A legal document that conveys the property from the parent to the child.
Preliminary Change of Ownership Report (PCOR): Required by the Assessor's Office for reassessment purposes.
Affidavit of Gift (if applicable): Required for gift deeds to establish that no consideration is involved.
Step 3: Execution of Documents
This is where The Bay Area Notary comes into play. Our role is to ensure that all docuemnts are properly executed. We will:
Verify the identities of the parent and child involved in the transfer; as well as any other parties that will be signing.
Confirm that the parent is willingly transferring the property.
Witness the signing of the documents.
Administer an oath, if required.
The notary public's stamp - also referred to as a ‘seal’ - and signature on the documents validate the document’s authenticity and legal execution.
Step 4: Filing with the County Recorder's Office
Once the documents are properly executed and notarized, they must be filed with the County Recorder's Office in the county where the property is located. This step makes the transfer official and updates the property records.
Sometimes the parent or child take care of this step. But we also commonly carry out this step on behalf of our clients as well.
Step 5: Paying Transfer Taxes (if applicable)
Depending on the method of transfer and the value of the property, transfer taxes may be due; however, this is rare. There are various exemptions in place that alleviate the parent and child from owing any taxes at the time of the transfer. Your notary public or the tax assessor’s office can provide further guidance on this matter, ensuring that all tax obligations are met.
Step 6: Informing the Assessor's Office
To avoid property reassessment (which could result in higher property taxes), it's crucial to inform the Assessor's Office about the transfer by submitting the PCOR (Preliminary Change of Ownership Report ). This step must be completed within 45 days of the transfer.
There you have it; a step-by-step guide to transferring a California property from parent to child.
Once again, we recognize that the transfer process can be a bit intimidating; but don’t worry, we’re here to help!
Whether you need assistance gathering all of the necessary documents, or you’ve already done so and your simply ready to sign, The Bay Area Notary has you covered. We will ensure that all of your forms are properly executed and legally binding.
As both a licensed Realtor and Notary Public we help our clients streamline the transfer from start to finish. If you and your family are in need of any assistance, feel free to reach out!