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California Real Estate Lawyers Blog

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California court may not extinguish or reduce an easement for non-use. Easement holders have rights.

Often easement disputes revolve around the extent of the use, or interference with use. Usually an easement for road access purposes involves a dispute when the use increases dramatically- for example, a residential property becomes a heavy equipment yard. Or, the owner of the servient tenement (the land over which…

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California unclean hands defense beats a challenge to a forged deed. Why It pays to act ethically with California real estate.

“Unclean hands” is a defense used in courts, in which a party claims the other side in not able to obtain relief because he comes to court with unclean hands- he has acted in bad faith or unethically. [Technorati J64A92HRG74M] The rule is sometimes stated “those seeking equity must do…

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California law provides double damages for harm caused to trees. Civil Code section 3346. A Court applied it to harm caused by trimming a neighbor’s tree.

California law provides double damages for harm caused to timber, trees, and underwood. Civil Code section 3346. Recently a Court applied it to harm caused by trimming a neighbor’s tree. It also found that the statute awarding attorney fees against an unlicensed contractor who causes harm (CCP 1029.8) cannot be…

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Californians should wait to 2013 to refinance their purchase money loan- then SB 1069 – CCP 580b may protect them from personal liability

With rates at an all time low, many in California are rushing to refinance their real property mortgage loans. Often, borrowers are not aware that they may expose themselves to personal liability if they refinance the loan they originally used to buy their residence. California has a number of statutes…

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Close your short sale by December 31, 2012 or else – the Mortgage Debt Forgiveness Act is set to expire, and you will be liable to pay tax on forgiven debt.

For tax purposes, housing debt that is forgiven or written off is treated the same as income. The difference between the short sale price, or price at a trustee’s sale, and the loan balance may be forgiven debt. It can be considered income, which is reported by the lender on…

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California Judge would not force parties to arbitrate real estate concealment claim against seller Nick Cage, though Purchase Agreement had arbitration provision- buyer included Construction defect claim against builder

Update at Bottom Most California residential real estate contracts (such as the C.A.R. form) have an arbitration provision providing for optional binding arbitration. If the parties all initial it, it becomes a requirement of contract. In arbitration the parties agree to have a supposedly unbiased third person decide the dispute.…

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Lender on California Property has security interest in the property, but apparently not in the money held back in escrow. How an unsecured creditor beat the secured creditor to the funds.

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,…

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Recording California deeds of trust & equitable subordination – when a lender can record last, but be considered first, to collect on foreclosure

When it comes to recording liens against California real estate, we follow the ‘first in time, first in right’ rule. (Civil § 2897) If your lien, or deed of trust, is recorded before mine, then yours is superior. If you foreclose, and I do not pay you off, my deed…

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California Homeowners Association Gets Court Order To Modify CC&R Super-majority voting, and members only get 4 days notice.

Many older California homeowners associations are governed by CC&R’s (Conditions, covenants, and restrictions) and bylaws which require a supermajority vote to amend the documents. A supermajority is something greater than a majority, and in some documents it can be greater than two thirds. However, when the board wants to amend…

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California construction contractor used multiple names, but court rescued it from being considered an unlicensed contractor. When a limited partnership is a general partnership in contractor fantasyland.

California construction and contractor law is pretty clear – you have to have a contractor’s license to get paid. If you don’t have a license and the owner does not pay, the courts will not help. The intent of the Contractor’s State License Law is to prohibit unlicensed contractors from…

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