How to Transfer Property Deed

Transferring real estate after a death depends on how the property was titled. If the property was held in joint tenancy with right of survivorship, the transfer is relatively simple: you file a certified death certificate and an affidavit of survivorship with the county recorder's office, and the property automatically passes to the surviving owner. If the property was held as tenants in common or solely in the deceased's name, it must go through probate, and the executor will execute a new deed transferring the property to the heir or buyer.

Before transferring the deed, obtain a professional property appraisal as of the date of death. This establishes the "stepped-up basis" — the new cost basis for capital gains tax purposes. For example, if the deceased bought the home for $150,000 and it was worth $400,000 at the date of death, the heir's cost basis becomes $400,000. If the heir later sells for $420,000, they only pay capital gains tax on $20,000 rather than $270,000. This stepped-up basis can save tens of thousands of dollars in taxes and is one of the most valuable tax benefits in estate planning.

To execute the transfer, you will need to prepare a new deed (typically an executor's deed or an administrator's deed), have it signed and notarized, and record it with the county recorder's office. Recording fees are typically $10 to $50 per page. Some states also require a transfer tax or a real estate excise tax at the time of recording, though many states exempt transfers due to death. If the property has a mortgage, notify the lender — under federal law (the Garn-St Germain Act of 1982), the lender cannot call the loan due when a surviving spouse or heir inherits the property, but the lender should still be informed. Continue making mortgage payments during the transfer process to avoid default.