Articles Posted in Real Estate Law

underwood-understanding-real-estate-contracts-300x300If you’re venturing into a real estate transaction and are daunted by the contracts, you’re certainly not alone. The jargon and intricate legal parlance can often make these contracts seem more complex than they actually are. Yet, the good news is that, armed with some guidance and understanding, these contracts become much less intimidating. Our friends at Cohen and Cohen delve deeper into the realm of real estate contracts below.

Key Aspects of a Real Estate Contract

Real estate contracts can be intricate and can have significant variation based on local laws and the specific details of the transaction. Nevertheless, there are several fundamental components that most real estate contracts should encompass to be deemed valid and enforceable:

underwood-ccp-joinder-property-300x300The California Partition Law begins at Code of Civil Procedure section 872.010 and ends at Code of Civil Procedure section 874.323. Section 872.240 allows for personal property to be partitioned with real property. The purpose of Section 872.240 is to give parties an avenue to partition their personal property alongside their real property if they want to. 

Code of Civil Procedure section 872.240 states

Real and personal property may be partitioned in one action.

underwood-home-equity-sales-300x300Frequently, when homeowners are dealing with financial difficulties, equity purchasers may induce homeowners to sell their homes for a fraction of the price. An “equity purchaser” is anyone who acquires title to any residence in foreclosure, with some exceptions. (Cal. Civ. Code § 1695.1(a)). The California legislature believed that homeowners were losing their homes to foreclosure due to “fraud, deception, and unfair dealing by home equity purchasers.” (Cal. Civ. Code § 1695). To combat these instances of deceit, the Legislature implemented the Home Equity Sales Contract Act, found in Title 5 of the California Code of Civil Procedure, Chapter 2.5, sections 1695.1-1695.16.

The goals of the Act are to provide homeowners with the information they need to make an informed decision regarding the sale of their home to an equity purchaser, to require that sales agreements be in writing, to protect the public against deceit and financial hardship, to encourage fair dealing in the sale and purchase of homes in foreclosure, to prohibit homeowners from being misled, to restrict unfair contract terms, to give homeowners a reasonable opportunity to rescind sales to equity purchasers, and to preserve home equities for the homeowners of California. (Cal. Civ. Code § 1695).

What Does the Home Equity Sales Contract Act Restrict?

underwood-ccp-titlereport-300x300The California Partition Law begins at Code of Civil Procedure section 872.010 and ends at Code of Civil Procedure section 874.323. Section 872.220 requires that the plaintiff state the existence and location of a title report if they have procured one. A title report includes a preliminary report, guarantee, binder, or policy of title insurance. (CCP § 872.010 subd. (e).)

Code of Civil Procedure section 872.220 states

If it is necessary to have a title report:

underwood-disclosures-realtor-sale-300x300Generally, the seller of a home has disclosures that they are required by law to make to any prospective buyer. This also applies to the realtor, broker, or any other agent working for the seller to sell the home. Different types of sales, however, may have varying disclosure requirements. Generally speaking, trustee’s sales, probate sales, and foreclosures sales are exempt from the California statutory disclosure requirements. All sales, however, are subject to the disclosure requirements under California common law.

General Statutory Disclosure Requirements in Real Estate Sales

If the seller is being represented by an agent in the transaction, then the agent must ask the seller about the condition of the property and fill out the form accordingly. (Civil Code § 1102.6.) The agent must also complete a reasonable and diligent visual inspection of the property and note on the disclosure form if there are any items for disclosure. (Id.) The seller or the agent can also amend any disclosures in writing. (Civil Code § 1102.9.)

underwood-what-are-klopping-damages-300x300Oftentimes, the government will announce a public project which may affect the neighboring property’s value. Most of the time, the public project should increase the property’s value. Sometimes though, the announced public project may decrease the property’s value, which may make it difficult to rent the property. When that happens, the property owner may be able to sue for what is known as “Klopping damages”. This allows the owner to recover lost rental income due to the decrease in value from a public project.

Klopping v. City of Whittier: Paying Public Damages

The California Supreme Court case that set the rule for Klopping damages was Klopping v. City of Whittier (1972) 8 Cal.3d 39. In Klopping, the city of Whittier planned to form a parking district. (Id., at 42.) The plaintiffs, Klopping and Sarff, owned properties that were going to be condemned for the project. 

Underwood-Blog-Images-5-300x300Ejectment is an action brought by a party seeking to recover a possessory interest or claim of title in a piece of real property. Typically, an ejectment action arises when a titleholder to a piece of property has been wrongfully excluded or withheld from the property. Therefore, ejectment applies only to those cases where an individual actually has possessory title to the subject property.

Ejectment is a possessory action used to recover possession of land or a piece of real property to a plaintiff in possession who has been wrongfully ousted from the property by the defendant. (Fuller v. Fuller (1917) 176 Cal. 637, 638, 169 P. 369].) In simpler terms, ejectment allows a party to retake possession of real property that the party was wrongfully removed from.

A claim of ejectment is a common issue in disputes over the real property where the parties are seeking to establish who holds title to or an interest in the subject property. Specifically, under Code of Civil Procedure section 3375, an individual who is entitled to specific real property may recover by a judgment for its possession or an order requiring a defendant to deliver possession of the property. (CCP § 3375.) At Underwood Law Firm, our attorneys are more than familiar with ejectment actions and the requirements needed to prevail on an ejectment claim. 

Underwood-Blog-Images-1-300x300Not all eminent domain proceedings involve the government taking an entire piece of property. If the property is large enough and the government’s project is limited in scope (expanding a road, for instance), then the government can instead opt for a “partial” taking of the property.

Despite this difference, partial takings are nonetheless subject to the requirement of just compensation for property owners. And in addition, property owners may be entitled to special damages if the government project diminishes the fair market value of the rest of the property.

Eminent domain is, however, one of the more difficult fields to navigate in litigation. This is in no small part due to the many evidentiary hurdles in place that make proving the right amount of just compensation a timely and expensive process. At Underwood Law Firm, our attorneys are more than familiar with overcoming these evidentiary roadblocks and are ready to help assist you with your litigation efforts.

Underwood-Blog-Images-4-1-300x300The significance of the differences between legal and equitable title is an outright confusing topic, requiring some knowledge of constructive trusts, beneficial interests, and seller’s liens. That said, the concept can be made digestible by boiling it down to its essential elements. When done, this simplification reveals how often we encounter both types of titles in common real estate transactions.

At its core, the difference between these titles contains significance only insofar as there are multiple interested parties in the same property. When this is the case, the law creates a legal fiction of sorts, assigning the beneficial use of the property to the “equitable” titleholder and the legal power over the property to the “legal” titleholder.

The explanation is, in reality, much more complex, but the attorneys at Underwood Law are more than familiar with the ins and outs of title disputes and are here to help navigate you through your real estate lawsuit.

Underwood-Blog-Images-1-3-300x300Writs of possession are special statutory remedies that usually appear in unlawful detainer actions. As their name implies, they are a means of recovering possession from someone who is wrongfully occupying a property. Writs are unique, however, in that they are almost exclusively a post-judgment tool.

This means that there must be a court judgment, order, or decree already in place that entitles a party to possession of the property. Only then can said party apply for and obtain a writ, allowing them to kick the wrongful occupants out of the house.

At Underwood Law Firm, our attorneys are familiar with writs of possession and the inherent difficulties in obtaining them. When a property is on the line, we understand what needs to be done and are prepared to assist you in achieving your litigation goals, whatever they may be.

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