As the others have already mentioned, I would also want to make sure that the parents and children receive proper advice concerning any legal consequences of the transfer of title. It would probably also be a good idea to have the property appraised just prior to the transfer just in case the value of the property at the time of the transfer should ever become an issue. I hope this helps. Let us know what you find out from the title/escrow company.
Once they decide exactly what is the right thing to do, then the title company should be able to take care of recording the proper deed. (I can't think of any reason for anyone to actually go to the County Recorder's office unless you work in title.)
John A Souerbry & Associates