Transfers in General

Chapter 1 of Title 4 of Part 4 of Division 2 of the Civil Code deals with transfers of real property in the acquisition of property in California. Article 2 deals with what may be transferred.

Section 1044 provides that property of any kind may be transferred, except as otherwise provided by this Article.

Section 1045 states that a mere possibility, not coupled with an interest, cannot be transferred.

Section 1046 says that a right of reëntry, or of repossession for breach of condition subsequent, can be transferred.

Section 1047 explains that any person claiming title to real property in the adverse possession of another may transfer it with the same effect as if in actual possession.

Article 3 deals with the mode of transfer. Section 1052 provides that a transfer may be made without writing, in every case in which a writing is not expressly required by statute.

Section 1053 says that a transfer in writing is called a grant, or conveyance, or bill of sale. The term “grant” is defined.

Section 1054 states that a grant takes effect, so as to vest the interest intended to be transferred, only upon its delivery by the grantor.

Section 1055 specifies that a grant duly executed is presumed to have been delivered at its date.

Section 1056 states that a grant cannot be delivered to the grantee conditionally. Delivery to him, or to his agent, is necessarily absolute, and the instrument takes effect thereupon, discharged of any condition on which the delivery was made.

Section 1057 explains that a grant may be deposited by the grantor with a third person, to be delivered on performance of a condition, and, on delivery by the depositary, it will take effect. While in the possession of the third person, and subject to condition, it is called an escrow.

Section 1057.3 states that it is the obligation of a buyer and seller who enter into a contract to purchase and sell real property to ensure that all funds deposited into an escrow account are returned to the person who deposited the funds or who is otherwise entitled to the funds under the contract, if the purchase of the property is not completed by the date set forth in the contract for the close of escrow or any duly executed extension thereof. The terms “close of escrow,” “good faith dispute,” and “property” are defined.

Section 1057.5 states that no person acting as an escrow agent whether required to be licensed as such or not, is required to pay over to any other person any commission, fee, or other consideration as compensation for referring, soliciting, handling, or servicing escrow customers or accounts.

Section 1057.6 says that, in an escrow transaction for the purchase or simultaneous exchange of real property, where a policy of title insurance will not be issued to the buyer or to the parties to the exchange, the following notice must be provided in a separate document to the buyer or parties exchanging real property, which is required to be signed and acknowledged by them.

Section 1057.7 provides that all written escrow instructions executed by a buyer or seller, is required to contain a statement in not less than 10-point type which include the license name and the name of the department issuing the license or authority under which the person is operating. This section does not apply to supplemental escrow instructions or modifications to escrow instructions.

Section 1058 states that redelivering a grant of real property to the grantor, or canceling it, does not operate to retransfer the title.

Section 1058.5 says that a notice of nonacceptance of a recorded deed executed by a holder of a security interest, which notice identifies the security interest, contains a legal description of the property, properly identifies the parties to the deed, the date of recordation of the deed, the county in which the project is located, and the county assessor’s parcel number of the real property referenced in the deed, may be recorded in the office of the county recorder where the real property is located.

Section 1059 provides that, though a grant is not actually delivered into the possession of the grantee, it is yet to be deemed constructively delivered in two specified cases.