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California Real Estate Lawyers Blog

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Attorney fee provisions in California contracts can be restricted to contract claims, or expanded to cover any dispute. How the provision must be worded to do either

California generally goes by the American Rule for attorney fees- the parties are generally responsible for their own fees. In situations involving written contracts, however, they parties may provide for payment of attorney fees in the event on a dispute. I have written before regarding attorney provisions in: —actions on…

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A California Option Which Was Illegal Because It Violated the Subdivision Map Act, Saved By an Amendment.

The Subdivision Map Act generally prohibits the sale of any parcel of real property for which a map is required, unless a map compliant with its provisions has been filed. Government Code section 66499.30. However, the Subdivision Map Act does not prohibit parties to offer or enter into contracts for…

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Senior lien holder modifies the terms of their loan in a workout agreement – what it takes to lose priority to a junior lienholder

California real estate law applies the first in time, first in right rule to recorded mortgages and deeds of trust. The lien recorded first, (senior) has priority to any recorded later. The result is that if the senior lender forecloses, the security of the second (junior) is wiped out. That…

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The Modern C.A.R. Real Estate Forms Allow the Seller to Cancel until Buyer’s Contingencies Are Released in Writing

The California Association of Realtors has published a set of transaction forms (“CAR” forms) for nearly every potential real estate contract. These fill-in-the-blank forms are intended to allow agents to prepare standard contract documents without the risk of being accused of practicing law. They are routinely revised and often the…

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California Commercial Lease Negotiations – The Landlord’s CAM Estimates May Need To Be Accurate, And The Landlord Cannot Raise The Percentage

Commercial tenants entering lease in California are usually required to pay their proportionate share of “common area maintenance,”, or CAM charges. The CAM charges are always characterized as an estimate- at the end of the year the landlord determines the total costs incurred for the year, and then apportions them…

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Recording a Wild Deed To Divert Property Tax Bills Can Help Establish An Element of Adverse Possession, But Gets You Thrown Out of Court For Unclean Hands.

A quiet title action is often filed to establish adverse possession in real property once a claimant has established the five elements, including payment of property taxes. In a recent decision, a pair of professional adverse possessors- they did this for a living- recorded a wild deed so that the…

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Calculating damages in real estate fraud in California – it’s worse for fiduciaries, but lost profits can be recovered

How to determine damages in a California real estate purchase and sale fraud dispute is often as significant and as hard fought as the question of liability. The reason is that there are two possible ways of measuring damages for fraud claims (other than contract damages), based on two different…

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California Loan Modification Trial Period Plan (TPP) under HAMP – Requirement That Lender Return Signed Modification Is a Flim-Flam, says 9th Circuit.

California residential borrowers, in trouble on their mortgage, know the lengthy frustrating process for seeking a loan modification. Some have told me that they believe it is a con game, where they get the borrower to make more payments under a trial program, with no intent to modify the loan…

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Assignment of California real estate loan does not assign fraud claims – Heritage Pacific foiled in plan to sue on 2nd note.

In the typical California home loan foreclosure, The first loan forecloses, and the second loan against the property loses its security. The question then becomes whether or not the borrower will be personally liable for the debt on the second loan. If it was a purchase money loan, the borrower…

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California adverse possession of property owned by tax exempt organizations is easier – property taxes do not need to be paid.

I’ve written before about California adverse possession and prescriptive easements. These are two legal concepts in which a party who does not own a property to establish an interest in it, and possibly own clear title. The concept is that the true owner must monitor their property; in California they…

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