Real Estate Law
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First, your mother can transfer/deed her grandson her interest in the house.....all that requires is her to execute and file a deed to the grandson.
As for whether or not your mother owns the entire house, that depends on how the ownership interest was held between your mother and the other co-owner. If the ownership was held as joint tenants with rights of survivorship, then your mother should be the fee simple owner of the property if she outlived the other owner. But, if there is no joint tenancy, then your mother would likely on 1/2 and the heirs of the deceased owner would own the other 1/2.