How do I transfer 1/3 interest in a tenants in common deed?

You definitely need to discuss this with an attorney. If the solution to your problem is to transfer one person's 1/3 interest to one of the other owners, then you just prepare a Grant Deed with the legal description, get it notarized, and then record it at the county recorder's office. However, that's probably the wrong thing to do. For example, if the person who is leaving plans to buy another home, the loan on this first home is going to continue to show on her credit report. The transferring owner is still liable on the loan. So maybe you need to refinance the house to take that person off the loan and the title. If the transferor is older and trying to avoid estate tax, that's wrong. There is no estate tax to worry about, unless her assets exceed her debts by more than $5,340,000.00, but if she gifts you the property, your tax basis will be her old low tax basis from when she bought her interest. If she gave it to you in her estate, then you would get a stepped-up basis to the value as of the date-of-death or six months later. Depending on the circumstances, there might be other issues to consider. Please contact an attorney. Dana Sack