Articles Posted in Real Estate Law

underwood-failed-deeds-contemplation-marriage-300x300It is an unfortunate fact that many marriages don’t make it out of the engagement stage. While this can be a difficult time for all involved, the situation can only become more dire when real property is involved.

Commonly, one owner of real property will add their partner to the house’s title shortly before the marriage occurs. Usually, they do this because they are under the impression that the marriage is about to happen. But when the partner calls the marriage off, the property owner is now faced with the problem of title. Under the law, the former partner is now an owner of the property.

In these instances, Civil Code section 1590 allows for the property owner to recover their title, although this will usually require filing a quiet title lawsuit. However, quiet title law can be difficult to understand, and in addition, litigants will need to take care not to blow the applicable statute of limitations. 

underwood-what-is-1542-waiver-300x300Civil Code section 1542 provides, “A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”

Settlements are a key aspect of litigation. As roughly 95% of all civil suits end with settlements, litigants are bound to come across these agreements, because that’s what settlements ultimately are – agreements. And though each settlement will ultimately differ depending on the circumstances, there are some settlement terms in California that are simply ubiquitous. 

These, of course, are agreements related to “release” and “waiver.” These are legal terms that relate to settlement provisions whereby both parties agree to release any claims they may have against each other. Almost every settlement has a section related to a “release.”  

underwood-tenant-convert-joint-tenant-300x300No, not unless they want to convert their own, singular interest into two or more shares. The reason for this is that grantors in a deed can only convey what they already own. If two tenant in common co-owners want to make themselves joint tenants, then they can collectively convey their interests to themselves in a deed. This works because, together, they own the whole property. 

But if one co-owner conveys the property to himself, and declares that he is now a joint tenant, that doesn’t work. Only half the property is being conveyed, and only one person is receiving the property. This does not meet the requirements of California’s Civil Code, which requires that a joint tenancy vest in two or more persons with equal shares. (Civ. Code § 683.) 

What is a Joint Tenancy?

underwood-unrecorded-deed-300x300In California, an unrecorded interest is valid between the parties thereto and those who have notice thereof. (Civ. Code § 1217.)

Just because a deed is unrecorded doesn’t mean it isn’t valid. If executed correctly, it is a valid transfer of real estate. But that doesn’t mean an unrecorded deed is a good idea. In fact, failing to record can wind up being a massive mistake, especially if the grantor tries to sell the property a second time, or give it to another family member.

In these situations, the right attorney can make all the difference. At Underwood Law Firm, our attorneys are well-versed in real estate recording laws and have the experience and knowledge to assist you in these types of title disputes.

underwood-right-of-first-refusal-300x300A right of first refusal is, essentially, an option contract. It is a contract or a condition in a contract between the owner of an asset, and some other person with an interest in that same asset, that allows the interested person to buy the asset from the owner instead of allowing the owner to sell it to a third party. Put differently, it’s a conditional right to acquire property, depending on the owner’s willingness to sell. (Campbell v. Alger (1999) 71 Cal.App.4th 200, 206.) 

The classic example is for a long-term lease of a house. There, as part of the lease, the owner provides that the renter has a right of first refusal if they rent for a set amount of years (let’s say five). After those fives years are up, the owner tries to sell the house on the market to a third party. But, because of the right of first refusal, the renter must be allowed to chance to make the same offer as the third party. Only if the renter “refuses” to match the offer is the sale allowed to proceed. 

While the concept itself is rather straightforward, there are many legal complexities that can arise when the right is integrated into other actions concerning property, such as eminent domain proceedings, probate sales, and partitions. 

underwood-what-is-real-property-300x300Under California’s Civil Code, real property refers to land, and things affixed to land such as houses. (Civ. Code § 658.) When people think of “property” they may envision a large lake house or a humble home. But this is only one type of property – real property. Personal property, on the other hand, is a broad term that encompasses property rights in basically everything else. A patent is property, and so are the apples that grow on trees in someone’s back yard, and so are the pipes and plumbing that run underneath someone’s house. 

But these property rights do not all fall into the same bucket. And when someone is selling a home, for instance, it’s important to know what property belongs to the seller (what are they allowed to take with them) and what belongs to the buyer (what must the sellers leave behind). 

In these situations, the right attorney can make all the difference. At Underwood Law Firm, our attorneys are well-versed in property law and partition actions, and are here to help you get the answers and assistance you need. 

underwood-what-is-proposition-19-300x300Proposition 19 is a new law in California that significantly affects the way property taxes are assessed on homes when deeded to heirs. While intra-family transfers were previously protected under Proposition 13, its effect has been significantly bludgeoned. On the other hand, Proposition 19 does include the added benefit of extra assessment transfers for residents over the age of 55. 

What are “ad valorem” taxes?

Prop 13 and Prop 19 are centered on “ad valorem” property taxes. “Ad valorem” is simply Latin for “according to value.” As such, ad valorem property taxes are just ordinary property taxes. They are a tax levied by the state government against owners of real property on a year-to-year basis. 

underwood-deed-trust-vs-mortgage-300x300Civil Code section 2924 states that “every transfer of an interest in property, other than in trust, made only as a security for the performance of another act, is to be deemed a mortgage.” The “other than in trust” portion of the statute refers only to express trusts, however, because “under a deed of trust the trustee obtains none of the incidents of ownership, other than the right to convey upon default.” (Blair v. Blair (1941) 44 Cal.App.2d 140, 146.)

As such, the functionality of the deed of trust is more or less identical to a mortgage. In terms of semantics, however, the big difference is that the mortgage is a two-party transaction whereas the deed of trust involves three. In addition, there is also a difference with how title actually passes with deeds of trust.

Filing a successful partition complaint can be quite difficult depending on the circumstances. There are a great number of statutes that need to be precisely followed, otherwise the court is likely to toss the complaint out on a motion to demurrer. 

underwood-order-determining-succession-real-property-300x300An order determining succession to real property is an alternative petition to get a court order transferring the property. (Prob. Code § 13154.) If the estate is small enough, and a successor to the decedent has proof that they are entitled to a certain piece of property, then they may use this process to become a title owner. 

Naturally, though, the process is much more complicated than it may seem. Only certain individuals may file the petition, and only certain types of estates even qualify. Therefore, in order to ensure compliance, litigants should take care to get themselves the right attorneys for the job. At Underwood Law Firm, our attorneys are well-read on real property transfers and ready to assist. 

When can an order determining succession to real property be used in Probate Court?

underwood-lis-pendens-constructive-trust-theory-300x300A lis pendens is a notice that a lawsuit has been filed against real property which could affect that property’s title. The lis pendens notifies any potential buyer that there is a lawsuit involving a real property claim. This is important because a potential buyer with knowledge of the lis pendens will be bound by the court’s eventual judgment on the lawsuit.

According to California law, a lis pendens is filed if the party has a real property claim. (Code of Civil Procedure § 405.20.) A real property claim is a cause of action that would affect the title or possession to real property, or easement use. (Code of Civil Procedure § 405.4.) Until recently, one could not file a lis pendens based on a constructive trust theory, since constructive trusts were not considered real property claims. A new California appellate court decision, however, allowed lis pendens to be filed based on a constructive trust theory. 

What is the Constructive Trust Theory?

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