Legal Question in Real Estate Law in California

Re: Invalid Grant Deed

This situation undoubtedly involves more facts than you could set forth in the scope of a LawGuru question, and the solution depends upon those facts.

The first additional question would be whether both owners are borrowers on both loans, and if so, whether either lender was consulted. Many loans don't allow any interest in the property securing the loan to be transferred.

The next question would be whether this was an outright gift, or if some kind of consideration was given to the (former) co-owner who gave up his or her interest. Money? A promise to provide long-term care? A promise to convey back after the illness was cured?

An attorney would also have to sniff around for any evidence of undue influence, fraud, etc. that might be a ground for un-doing the deed. Absent a basis for having a court invalidate the deed from the get-go, there is very little legal precedent for un-doing a real property transaction by deed. Tearing up the deed does not destroy its effect, even if that's what both grantor and grantee have in mind. The only way to reverse its effect is by another deed, and while this would restore ownership to the status quo ante, I doubt this would expunge the earlier transaction so as to restore the former property tax valuation.

The amount that is owing on a property does not affect its market value, nor its assessment. The type of financing used in a purchase transaction can affect appraisal for tax purposes but existing financing is not a factor, at least not here.

The general lack of bureaucratic sympathy here may be due to an official viewpoint in the County government that transfers of this type are most often attempted for the purpose of putting interests in real property out of the reach of creditors, often MediCal or some other poverty-required medical or long-term nursing care situation. That doesn't mean it's justified.

I'm located in rural West Marin, just a short distance from the 95407 region of Santa Rosa, and most of my cases are in Sonoma County. I'd be happy to schedule a free initial consultation with one or more of the principals here if you would put them in touch with me.

Re: Invalid Grant Deed

I would need to see the deeds.