A deed of trust represents security for the loan. It has several parties- a) the trustor, who is the borrower and owner of record for the real property that is security for the loan; b) the beneficiary, who is the lender whose debt is secured by the deed of trust;…
California home buyers often get both a first loan and a second, usually a home equity line of credit, or “HELOC.” Generally, when a second loan is made by a different party, not as a part of the purchase, when the first forecloses, the value of the junior’s security has…
A California quiet title action can be brought to establish legal or equitable right, title, estate, lien, or interest in property or cloud upon title against adverse parties. Sacramento and Yolo real estate attorneys occasionally advise clients who, not being able to pursue an action, are interested in assigning their…
It is a general rule of California real estate law that a forged deed is “void,” not merely voidable. Therefore it cannot convey title, even to a good faith purchaser. A good faith purchaser is one who has no knowledge or suspicion of a problem, and pays reasonable value for…
Often in an escrow for sale or financing of California real estate, money will be held back in escrow to take care of unresolved issues. This is done on agreement of the parties in the real estate purchase and sale contract, or the loan documents and escrow instructions. For example,…
I wrote last about a Sacramento developer who demolished the building on a property to build a mixed-use development. But, the market crashed, the developer defaulted, and the property was foreclosed by trustee’s sale. The lender than sued; in the last post I discussed the claim for bad faith waste.…
It is a general rule of California real estate law that the possessor of property, whether as owner (with a loan against the property), or tenant, not to commit waste. Waste is any act, omission, or neglect that materially reduces the market value of the property. When you take out…
The economic crisis and the subsequent foreclosures resulted in the California legislature enacting a number of laws to assist homeowners and tenants of houses in trouble. One such law, Civil Code section 2923.5, requires that the foreclosing party must first contact the borrower, assess their financial condition, and explore options…
Title companies often prepare complicated documents, such as deeds of trust, grant deeds, an promissory notes to accommodate closing escrows, which results in their fees. There can be mistakes that vary in seriousness, and sometimes the only solution is to have the Court order a document re-formed. A recent decision…
In historical terms, the California deed of trust is a recent development. Originally parties used a “mortgage” in which the property was conveyed by the buyer to the lender, subject to payment of the debt. Prior to payment of the debt, the lender was entitled to possession of the property.…