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California Real Estate Lawyers Blog

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Void Judgments and the Risk To Real Estate Buyers – An Action to Cancel an Instrument Does Not Quiet Title

I had previously discussed the case of OC Interiors, where the court determined that a void judgment in the chain of title to real property nullifies all subsequent transfers, including a transfer to a bona fide purchaser. That is a frightening prospect for buyers, and a reason to take a…

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Slander of Title and the Statutory Privilege – What May Be Done by a Trustee Who is Foreclosing a Property

Slander of title is a false statement related to real property that causes monetary loss. The goal is the protection of the transferability of title. The claim is based on whether the publisher of false information could reasonable expect the false publication to influence the conduct of a third party,…

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Multiple Deed of Trust held By the Same Lender –Why Foreclosure of the First Does Not Prevent Deficiency on the Second

When there are multiple liens on real property and the senior lien or deed of trust is foreclosed, the junior liens are wiped out, and the junior lienholders have lost their security for the debt. All they have left is the underlying debt, which they can then seek to collect…

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Statute of Limitations to Prohibit Permanent Encroachment in California – Sacramento Appellate Court has its own Rule.

Encroachment, or trespass, is an invasion of real property rights by another. It can be anything, such as a fence, a railroad, landscaping, a parking lot or building. When the owner of the property wants to stop it, they may file an action for a permanent injunction prohibiting the use.…

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A Guarantor in a Sales Transaction Only Guaranties What is Described in the Document, and the Guarantor May Be Exonerated – How the Courts Determine Liability.

In a sales transaction, there is often included a guaranty, where one party guarantees to pay the debt of another. More accurately, a guarantor is “one who promises to answer for the debt, default, or miscarriage of another, or hypothecates property as security therefor.” (Civil.C. 2787). Thus if you buy…

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California Court Grants Equitable Easement Where there was no Prexisting Use – The Test the Court Applied

A court may create an “equitable easement”, on equitable grounds, even though the user is not entitled to an easement on one of the more traditional grounds. The judge balances the rights of the various parties to achieve an equitable solution. Generally, the courts apply a three-part test to determine…

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Fraudulent Transfers and the Good Faith Defense – Party Raising the Defense Only Needs to Prove It Did not Have Actual Knowledge of Wrongdoing

A fraudulent transfer is a transfer of property by a debtor to a third party with the intent to put that property out of reach of a creditor to satisfy their claim. If found to be a fraudulent transfer, the transfer is voidable as to the debtor. Voidable means that,…

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A Clash Between a Void Judgment and a Bona Fide Purchaser of Real Estate – How the California Court Sorted out their Rights

Default judgments occasionally occur, and sometimes they may be set-aside or vacated by the court. There are several statutory grounds for a judgment debtor to get a default vacated. But what happens in the default judgment concerns title to real property? If there is a default judgment in the chain…

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The Statute of Frauds and the Real Estate Commission – When Not Every Owner Needs to Sign the Listing Agreement

The Statute of Frauds requires certain agreements to be in writing. The reason is that these agreements are too important to allow oral agreements, as they are susceptible to fraud. It is codified in Civil Code section 1624, and also applies to agreements for real estate commissions, about which the…

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