Articles Posted in Real Estate Law

What is a Bona Fide Purchaser for Value? (Civ. Code § 1214)
Underwood Law Firm, P.C.

The purpose of this article is to explain what a bona fide purchaser for value is and how that status impacts someone’s property rights. A bona fide purchaser for value (or bona fide purchaser) is someone who acquires a property interest or encumbrance like a property, mortgage, or lease, and meets two specific criteria. A…

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A Guide to a “Cloud on Title”
Underwood Law Firm, P.C.

The purpose of this article is to discuss the commonly-discussed, but poorly understood, concepts of a “cloud on title.” A “Cloud on title” is an adverse claim, which may look good on its face, but is actually invalid or barred in some way. A cloud on title is a claim or encumbrance (like a mortgage…

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Real Estate Commissions in Probate Actions (CCP 873.745)
Underwood Law Firm, P.C.

Probate proceedings can often be complex, especially when it comes to the sale of property within an estate. In California, the rules governing commissions for agents, brokers, and auctioneers involved in probate sales are outlined in California Probate Code. Probate commissions are fees paid to executors and administrators for their services in managing and distributing…

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A Primer on the “After Acquired Title Doctrine” (Civ. Code § 1106)
Underwood Law Firm, P.C.

When it comes to real estate transactions, ensuring a clean and clear title is essential. However, what happens if a property is sold without a perfect title, only for the seller to acquire the missing rights or interests later? This scenario is where the After Acquired Title Doctrine comes into play. In this blog, we’ll…

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A Guide to the Marketable Record Title Act (Civ. Code § 880.020)
Underwood Law Firm, P.C.

The Marketable Record Title act provides a statutory time limit to eliminate certain liens. Specifically, the purpose is to enhance the marketability of property by fixing an expiration date for certain interests, which are generally ancient mortgages, deeds of trust, unexercised options, powers of termination, unperformed contracts for the sale of real property, dormant mineral…

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Can One Co-Owner Take All of the Rent from the Property?
Underwood Law Firm, P.C.

Often, the question of distributing rent earned on a co-owned property arises in the context of cotenants. Cotenants have equal rights to possess their property with their fellow cotenants. This means that no one cotenant can exclude another from the property. One cotenant can, however, assign their right of possession to a third party. This…

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A Guide to Penalties for Financial Elder Abuse (Probate Code Section 859)
Underwood Law Firm, P.C.

Probate Code section 859 protects certain individuals whose property or money is taken, concealed, or disposed of by another. Section 859 does this by imposing hefty penalties on anyone who wrongfully takes or conceals property belonging to certain groups. Specifically, the statute provides: “If a court finds that a person has in bad faith wrongfully…

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A Primer to Trustees and Beneficiaries in California (Prob. Code § 16000.)
Underwood Law Firm, P.C.

A trust is a legal device that is commonly used in estate planning. A trust represents “a collection of assets and liabilities” that can be held and transferred by an individual to another individual, the “beneficiary.” (Portico Mgmt. Grp., LLC v. Harrison (2011) 202 Cal.App.4th 464, 473.) When the trustee, the person responsible for managing…

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Jogani v. Jogani: A Massive Decision on Joint Ownership
Underwood Law Firm, P.C.

Recently, a jury in the Los Angeles Superior Court awarded what may become one of the largest judgments in a real estate case that has ever been issued. Significantly, in addition to a damage award in the billions, the Court also found that the family members were also co-owners in 17,000 apartments across California. As…

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A Guide to Restraints on Alienation (Civ. Code Section 711)
Underwood Law Firm, P.C.

Real estate law has many nuances and subtleties. One of the lesser known aspects to real estate law is something known as a “restraint on alienation.” At its most basic, a restraint on alienation limits the sale or transfer of interests in real property. Civil Code Section 711 states that “[c]onditions restraining alienation, when repugnant…

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