property rights Archives

What Does “Color of Title” Mean?

Published on: August 9, 2024 | By Underwood Law Firm, P.C.

underwood-law-color-of-title-300x300 The purpose of this article is to explain the term “color of title.” This is an important concept in real property disputes because it means some has apparent title to property based on a written instrument, but that title is actually defective.

What is Required to Show Color of Title?

Color of title gives the appearance that someone holds title to a piece of property. (Thompson v. Dypvik (1985)174 Cal. App. 3d 329, 339.) The possessor of color of title has a written deed or instrument or judicial decree that seems to transfer good title. However, the transfer is somehow defective and is not actually effective in transferring title. (Packard v. Moss (1885) 68 Cal. 123, 126.) Just because a deed is void does not mean the possessor of color of title has no claim to the property. Instead, the color of title provides exactly that. It can allow someone to assert a right to property under a defective instrument as long as they can show they had a good faith belief the instrument was valid. For example, a deed that describes the land and purports to pass title between two people which is ultimately void or voidable, furnishes color of title on which the recipient of the deed can base a claim of adverse possession. (Id. at 130.)

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A Guide to Rights of First Refusal

Published on: February 14, 2024 | By Underwood Law Firm, P.C.

underwood-guide-to-right-first-refusal-300x300 A right of first refusal – sometimes called a “preemptive right” – is a right provided by contract that gives a party priority to purchase a property if the owner decides to sell. This right may be included in an ownership agreement between two co-owners who are cotenants. The person who holds the right is the “grantee,” and the person who gives the right to a fellow co-owner is the “grantor.”

A right of first refusal gives the cotenant priority over other potential buyers when the other cotenant makes a decision to sell their interest in the property. Unlike a valid option provision where a cotenant is obligated to sell the property to the other cotenant subject to the terms of the ownership agreement, under a right of first refusal, a second cotenant’s ability to purchase the first cotenant’s interest depends on the first cotenant’s desire to sell it. The right of first refusal becomes an option when the owner “voluntarily decides to sell the property and receives a bona fide offer to purchase it from a third party.” (Campbell v. Alger (1999) 71 Cal.App.4th 200, 206-207.)

What types of instruments contain a right of first refusal?

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Who is Responsible for Injuries on Jointly Owned Property? (Civ. Code § 1714)

Published on: August 9, 2023 | By Underwood Law Firm, P.C.

underwood-responsible-injuries-joint-property-300x300 Generally, every owner of property is liable for injuries on their property when it is not in a reasonably safe condition. (Cody F. v. Falletti (2001) 92 Cal.App.4th 1232.) If a party was a co–owner and jointly in possession of the premises, they would be equally responsible for the condition of the premises and equally liable for injury. (Mayo v. White (1986) 178 Cal.App.3d 1083.

Civil Code section 1714 states that everyone is responsible for an injury occasioned to another by his or her want of ordinary care or skill in the management of his or her property or person, except so far as the latter has, willfully or by want of ordinary care, brought the injury upon himself or herself.

Even if someone has a small interest in the property and they exercise no control over the management of the property, they still will be liable. (Davert v. Larson (1985) 163 Cal.App.3d 407.) This is because the courts believe relieving individual owners in common of liability would eliminate any motivation of any party to exercise due care in the management and control of commonly owned property. (Id.) Therefore, owners may then be found to be “jointly and severally liable” for a person’s injury.

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What are the different types of real estate (Civil Code section 765)?

Published on: April 12, 2023 | By Underwood Law Firm, P.C.

4122023-300x300 An estate is categorized by the duration of time one holds an interest in the estate. For example, an estate acquired through inheritance is categorized differently from an estate for years. There are three different ways an estate can be categorized, which is codified in California Civil Code section 765. Essentially, section 765 categorizes an estate based on the character of the property.

Under section 765, there are freehold estates, chattels real, and chattel interests. Depending on the character of the estate, a person holds different rights in the subject property. At the Underwood Law Firm, our attorneys are more than familiar with freehold estates, chattel real, and chattel interests.

What is a Freehold Estate?

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