What is needed for our son to grant deed property to us that we once owned?

Full question:

Our son is grant deeding property to my husband and I. Does he have to have permission from the lender since his name is on the loan? Is this a legal and viable transaction? If not, what about being added on the deed since we were the original owners before we deeded it over to him.

• Category: Real Property
• Subcategory: Deeds
• Date: 04/07/2025
• State: California

Answer:

In some cases, a mortgage has an acceleration clause, allowing the lender to demand accelerated payments upon the happening of an event, such as a transfer without the lender's permission. I suggest contacting the lender to inquire about any restrictions applicable to a
transfer.

If a transfer is created with knowledge of an impending claim, it is possible the transfer could be challenged as a fraudulent

conveyance. For example, creating a trust right before filing bankruptcy may throw up red flags for examination.

The elements of a fraudulent conveyance transfer are defined as follows by the Uniform Fraudulent Transfer Act:

(a) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:

(1) with actual intent to hinder, delay, or defraud any creditor of the debtor; or

(2) without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:

(i) was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or

(ii) intended to incur, or believed or reasonably should have believed that he [or she] would incur, debts beyond his [or her] ability to pay as they became due.