May 16th, 2016 at 7:50 pm
Answer: Yes. Until the age of 18, a child has no legal capacity to enter into a valid contract to buy or sell real property (unless the child is emancipated). But a child can own real property in his or her own name. After all, a child need not sign anything to receive real property as a gift or inheritance.
Once on title, a child may need to get a court-appointed guardian ad litem to do what adult homeowners do, depending on the circumstances. For instance, if the child wants to rent out the property, no one is likely to care if the child’s parent signs as the landlord on the lease without getting court approval. But if the child wants to sell the property or get a loan, the title company is highly unlikely to insure title unless the child obtains a guardian ad litem appointed through the court process, and the guardian signs the deed instrument as the child’s representative.
Of course it would have been much better for the person who transferred title to the child to have set up a trust for the child instead, given that the court process for appointing a guardian ad litem can be difficult, costly, and time-consuming. But that doesn’t mean that a transfer of title to a child is invalid.
Legal Resource:? You and your clients may be interested in a recently updated publication called “Kids & the Law” (also in Spanish) from the California State Bar. The 16-page booklet covers topics such as social networking, driving, drugs and alcohol, privacy, curfew, truancy, and much more.
Like what you see here? Sign up for more! Our free e-newsletter informs you of listings in your community, insider real estate tips, the latest in home trends, and more.
