Expert: Dick Dennis - 1/10/2007

Question
Regarding Grant Deed into and out of revocable trust.

In 1992 a 'grant deed' form was used to place our property into our trust. This form indicated for "valuable consideration".  Then in 1993 during our refinance process a Quit-claim form was used to take our property out of and back into our trust. In this case, the quit claim indicated for "no consideration".  Then in 2006 a "grant deed" was used during this most recent refinance process.  This grant deed transfering property out of and back into our trust indicates for "valuable consideration".  I am confused about which form is best to use when transferring property in and out of a trust. And is there "no consideration" or valuable consideration"?  Also, can I as the trustor demand the title company use a quit-claim or grant deed for these purposes?

Answer
In California and a few other states, the grant deed is the prime document transfering title to a property. A quit claim deed is only used a certain occasions when there would be very little probablility of a problem developing from that conveyance. In your case, they were used for convenience. But I recommend you always use a grant deed if you want to make sure the property party is conveying to the proper party. A grant deed, like a warranty deed, used in many states, assures the person who is receiving title to the property that the person who is conveying the title had the right to convey the title. A quit claim deed does not guarantee that the person who is conveying the title has that right. For example, right now I can send you a quit claim deed to the Golden State Bridge or Yosemite Park. Now do you get my point?

Based on what you have told me, leave everything alone.

I wish you well.

Dick Dennis