Articles Posted in Category: Real Estate Law

What is a land sale contract (Civ. Code § 2985)?
Underwood Law Firm, P.C.

Property may be sold and acquired in a variety of different ways especially based on the type of property it is. One of these forms is a land sale contract. A land sale contract is different from a deed or other traditional instrument of title. Under a land sale contract, the buyer does not...

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What are Some Examples of Executor Misconduct?
Underwood Law Firm, P.C.

An executor is someone appointed to manage a person’s estate once they pass away and ensure assts and property are given to the appropriate people. Because of the power they have, they must abide by their duties to the estate. Otherwise, they may be liable for their misconduct.  What qualifications must an executor have?...

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What is a 1031 Exchange?
Underwood Law Firm, P.C.

1031 exchanges are a real estate tax break that allows commercial property sellers to exchange a business, trade, or investment property for another, like kind, property while deferring capital gains tax on the sale. Without this tax break, sellers must pay capital gains tax at the time of sale. California law does not require...

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The Legal Process of Partitioning Property: Step-by-Step Guide
Underwood Law Firm, P.C.

In California, the legal process of partitioning property is the process through which co-owners of real property divide the co-owned property, either physically or by sale. Typically, partitions occurs when co-owners disagree on how to manage or use the property. The legal process of partitioning property involves several complex steps. This blog post aims...

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How to Handle a Property Ownership Dispute?
Underwood Law Firm, P.C.

When you own a property with one or more people, you may end up in a dispute over payment for remodeling, upkeep, rent payments from tenants, or even wanting to get rid of the property. While it is worth trying to settle these disputes out of court, if they escalate you may want to...

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What happens to a house in a trust after death? (Prob. Code § 15200)
Underwood Law Firm, P.C.

A trust is a great way to determine what happens to your property after death and ensure that it is distributed the way you intended. This also applied to real property. If the real property is a house, that may create disputes over how it is divided, especially if your trust grants an interest...

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What happens when you pay someone else’s property taxes?
Underwood Law Firm, P.C.

Under California law, paying someone’s property taxes does not automatically grant ownership of the property. In California, paying someone else’s taxes, even if done in good faith, is considered a gesture of goodwill or a means of avoiding a tax lien, but no matter the motive, payment does not transfer legal ownership.  If, however,...

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Can you remove someone from a deed without their knowledge?
Underwood Law Firm, P.C.

Owning property can come in different forms of ownership which grants you different rights. If you acquire an interest in property by sale or inheritance you may end up holding a percentage property interest while another person holds the other part of that interest. When co-owning property with someone, both of your names are...

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What is an Easement in Gross v. an Easement Appurtenant?
Underwood Law Firm, P.C.

In California, easements are legal rights that allow one party to use another party’s property for a specific purpose, without transferring ownership of that property. Easements are be created through express or implied agreements, long-standing use, or necessity. They are commonly used to grant access to driveways, utility lines, or for other specific purposes...

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What is a Resulting Trust versus a Constructive Trust?
Underwood Law Firm, P.C.

Trusts are an important way to set out one’s wishes for how and when you want to transfer assets like property. While trusts usually are set up as written contracts, other trusts can be enforced by the court, like resulting trusts and constructive trusts. These types of trusts are involuntary, meaning a court imposes...

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What is a “Grandfather Clause” in Real Estate?
Underwood Law Firm, P.C.

A grandfather clause in a real estate context means a clause from a law or regulation was grandfathered in from an old version of that law or regulation. This means even if the law currently would affect someone if they were exempt under the old version of the law those rights have been “grandfathered...

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What is an Encumbrance?
Underwood Law Firm, P.C.

An encumbrance is a term frequently used in context with real estate. It is most often used with regards to property transfers. When contracting to sell or convey property it is usually implied that that property is being delivered free of encumbrances. (Smiddy v. Grafton (1912) 163 Cal. 16, 18.) This means the property...

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Do Child Support Liens Attach to Real Estate? (Fam. Code, § 17523)
Underwood Law Firm, P.C.

Yes. Child support liens attach to real estate in California both voluntarily and involuntarily. Liens are effectively a public notice of outstanding claims against your property. In the case of child support, a custodial parent can place a lien against the non-custodial parent’s property when they fail to make court ordered payments. Child support...

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What is Commercial Real Estate?
Underwood Law Firm, P.C.

Commercial real estate is property being operated to generate business revenue through rental income or capital gains. Because it is meant to generate revenue if it is residential property, it must be used as rental housing to still be considered commercial real estate. It is not personal property. Commercial real estate may have multiple...

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A Guide to Dividing Property Appreciation (Marriage of Marsden (1982) 130 CalApp.3d 426)
Underwood Law Firm, P.C.

Dividing property following divorce or dissolution proceedings can be complicated under family law principles. If the property has appreciated in value, this can make dividing it more contentious and complicated. Under family law, a married couple’s earnings received during marriage are considered community property and are divided evenly at divorce. (Cal. Fam. Code §...

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What is a Broker’s Opinion of Value? (12 U.S.C. § 3355.)
Underwood Law Firm, P.C.

In determining the value of property, a property owner can seek out a broker’s opinion of value. A broker’s opinion of value, also caller a broker’s price opinion is an assessment of a property’s value. This assessment is done by a real estate broker, often for free to get the property owner’s business. Broker’s...

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Is Title Determinative (In re Marriage of Valli (2014) 58 Cal.4th 1396)?
Underwood Law Firm, P.C.

In California, title is determinative in some instances. This means that a court’s characterization of property in a marital dissolution proceeding determines the division of the property between spouses. How a property is titled may also affect the property’s protection from creditors, taxes, and the probate process. Understanding how and when title is determinative...

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What is the Difference Between a Jurat and an Acknowledgement?
Underwood Law Firm, P.C.

Property transfers often require documents showing the transfer to be notarized and recorded. This means the document is entered into the county recorder’s office and notarized to ensure the document is authentic. A signed document can be notarized via a jurat or an acknowledgment. The choice of method is left to the person signing....

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Does a Personal Lien Attach to Real Estate? (CCP § 697.320)
Underwood Law Firm, P.C.

This article is about whether a personal lien, like a lien for child support, can attach to real estate. This is important because property can be used as collateral for debt voluntarily or involuntarily. This means the owner of the property uses the property as collateral by having a lien placed on it. What...

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A Guide to Exceptions in a Title Report
Underwood Law Firm, P.C.

Exceptions in a title report, also called a preliminary title report, make a potential buyer aware of issues with the property. Exceptions are important as they may limit what title insurance a buyer is eligible for and may prevent the sale of property altogether. What is a title report? A title report is used...

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AB 2016 — An Update to “Small Estate Petitions” (Prob. Code § 13100)
Underwood Law Firm, P.C.

An Assembly bill applying to decedents’ estates was finalized on August 29, 2024. The bill will amend six sections of the Probate Code (Cal. Prob. Code § 13100-13101, 13150-13152, 13154) and repeal one section (Prob. Code § 13158). This is significant because it impacts how successors of decedents can manage a decedent’s real property....

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What is a “Title Defect”?
Underwood Law Firm, P.C.

The purpose of this article is to explain about the legal concept of a title defect. Finding defects in the title of a property is important because it indicates there is a problem with the property’s ownership. Title defects can prevent sale and present additional costs to owners and buyers. What is a title...

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What Does “Color of Title” Mean?
Underwood Law Firm, P.C.

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...

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A Primer on “Arm’s Length Transactions”
Underwood Law Firm, P.C.

The purpose of this article is to explain “arm’s length transactions” in real estate in California. This concept is important because this type of transaction or sale for property may affect the deed or contract surrounding the transaction. It also affects property taxes and the value of a property at the time of sale....

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What is the ownership presumption in a probate dispute? (Fam. Code 760.)
Underwood Law Firm, P.C.

The purpose of this article is to explain the ownership presumption in a probate dispute. This is because property ownership can cause disputes even after death, which must be resolved in the probate or civil courts. (Schlyen v. Schlyen (1954) 43 Cal.2d 361, 370–371.) Specifically, the understanding of how marriage affects ownership presumptions in...

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Is a Deed a Contract?
Underwood Law Firm, P.C.

The purpose of this article is to explore the finer distinctions between deeds and contracts. In California law, a deed is one of the most powerful legal documents that any person will ever handle, but there is very little in the public domain available about them in order to understand them better. Moreover, unlike...

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Qualified Personal Residence Trusts (26 C.F.R. § 25.2702-5)
Underwood Law Firm, P.C.

The purpose of this article is to explain what a Qualified Personal Residence Trust (QPRT) is. A QPRT is an irrevocable trust which allows the creator, the grantor, to move a home out of their personal estate. This is done to give the home to a future beneficiary with gift tax savings. This is...

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A Primer on Transfer on Death (TOD) Deeds (Prob. Code § 5600 to § 5698)
Underwood Law Firm, P.C.

The purpose of this article is to explain what a Transfer on Death (TOD) Deed is. TOD Deeds are meant to allowing people, especially elderly people, to transfer their residential property. These deeds are meant make it easier and less expensive to transfer that property without needing a will or living trust that would...

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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....

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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...

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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,...

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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...

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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....

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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...

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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...

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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....

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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...

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Testimony on Property Value in Partition Cases (Evid. Code Section 813)
Underwood Law Firm, P.C.

The estimated value of a piece of property can be important for resolving several types of legal disputes. It is crucial when a property owner needs to establish damages when the government interferes with the owner’s property and diminishes its value. Spouses may wish to testify regarding the value of their marital property when...

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A Guide to Rights of First Refusal
Underwood Law Firm, P.C.

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...

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A Primer on Tax Auctions (Code of Civil Procedure section 701.660)
Underwood Law Firm, P.C.

One of the more interesting ways to buy real estate is through tax auctions. When a party buys a property through a tax auction or foreclosure, they receive a special type of deed known as a “Sheriff’s Deed.” A sheriff’s deed is a legal instrument that is transferred when a property is sold as...

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Undivided v. Divided Interests in Real Estate
Underwood Law Firm, P.C.

Owning property can be complicated. The purpose of this blog post is to talk about different ways to hold title, and provides information on the meaning of some common terms so the average person can better understand their rights and responsibilities with respect to their property. Different types of property ownership come with different...

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5 Things to Prepare For If You Own Real Estate in 2024 (via CSQ)
Underwood Law Firm, P.C.

With rising rates keeping inventory and sales down, 2023 has seen a holding pattern for many real estate owners. Prices have held steady, but there has not been much movement in the market. That’s likely to change in a major way as we head into 2024. As the founder and president of Underwood Law Firm,...

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Equity as a Settlement Offer (Code of Civil Procedure § 998)
Underwood Law Firm, P.C.

California Code of Civil Procedure section 998 incentivizes parties in litigation to settle their disputes before trial. The statute provides that up to ten days before trial, either party may submit a written offer to the other to settle the case under specified terms. (CCP § 998(b).) If the plaintiff rejects the defendant’s timely...

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A Guide to the Independent Administration of Estates Act
Underwood Law Firm, P.C.

The Probate process can be intimidating and confusing. In addition to having to deal with the death of a loved one, adding the resolution of legal and real estate issues on top of everything else can feel like a lot. Recently, the Legislature changed the law to attempt to make things smoother, and easier...

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Title Insurance in Real Estate Litigation
Underwood Law Firm, P.C.

Before undertaking litigation over real estate in California, title insurance can help to provide clarity as to important ownership questions. Title insurance is not just nice to have, in many instances, the law specifically envisions that the parties will obtain a title report of some type. For example, the Partition Law specifically envisions that...

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Failed Deeds in Contemplation of Marriage
Underwood Law Firm, P.C.

It 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...

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What is a 1542 Waiver? (Civ. Code section 1542)
Underwood Law Firm, P.C.

Civil 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...

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Can One Tenant in Common Convert to a Joint Tenancy?
Underwood Law Firm, P.C.

No, 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...

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What is the effect of an unrecorded deed? (Civ. Code 1217)
Underwood Law Firm, P.C.

In 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....

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What is a Right of First Refusal?
Underwood Law Firm, P.C.

A 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...

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What is “Real Property”? (Civ. Code § 658)
Underwood Law Firm, P.C.

Under 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,...

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What is Proposition 19?
Underwood Law Firm, P.C.

Proposition 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...

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What is the difference between a deed of trust and a mortgage?
Underwood Law Firm, P.C.

Civil 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...

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What is an Order Determining Succession to Real Property? (Probate Code Section 13154)
Underwood Law Firm, P.C.

An 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...

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Can You File a Lis Pendens Based on a Constructive Trust Theory?
Underwood Law Firm, P.C.

A 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...

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What Is The Statute of Limitations On a Quiet Title Action? (CCP § 338)
Underwood Law Firm, P.C.

The Legislature has not established a specific statute of limitations for actions to quiet title. (Salazar v. Thomas (2015) 236 Cal.App.4th 467, 476.) Instead, the statute of limitations is based on the underlying theory of relief for the action. (Id.) For example, if the underlying theory is relief for trespass or injury to real...

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How to Escape the AirBnBust
Underwood Law Firm, P.C.

In recent years, the growth of vacation rentals have driven the rise of purchasing investment properties in highly desirable areas throughout the country. For years, investment rentals were so profitable that many people jumped into the market and purchased properties to get a piece of the action. Unfortunately, in recent years, the sheer number...

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Can You Abandon Real Estate (Gerhard v. Stephens (1968) 68 Cal.2d 864, 876-877)?
Underwood Law Firm, P.C.

Generally, an owner can never legally “abandon” title to property. (Gerhard v. Stephens (1968) 442 P.2d 692, 713.) Instead, abandonment can only be found in situations dealing with personal property. Yet when the property interests in real property are in the nature of incorporeal hereditaments, the California Supreme Court has found that those interests...

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What is an Ouster?
Underwood Law Firm, P.C.

What is an Ouster (Civ. Code § 843)? An ouster occurs when one tenant wrongful dispossesses or excludes another cotenant or cotenants from the common property. (Zaslow v. Kroenert (1946) 29 Cal.2d 541, 548.) Regardless of whether individuals share property as joint tenants or tenants in common, the property rights of cotenants are usually the...

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When Should You Change Your Lawyer? (MC-050) With Form
Underwood Law Firm, P.C.

Generally, when obtaining representation for yourself and your property interests, you must make sure that your interests are indeed being protected and your wishes respected as much as legally possible. The moment it becomes clear that your attorney is not acting accordingly, it may be time to change your lawyer. What You Should Expect...

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Code of Civil Procedure (CCP) Section 872.250—Lis Pendens
Underwood Law Firm, P.C.

The California Partition Law begins at Code of Civil Procedure section 872.010 and ends at Code of Civil Procedure section 874.323. Section 872.250 outlines the procedure for a plaintiff seeking a partition of real property to record a lis pendens with the county office. A lis pendens gives notice to any future persons who...

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Who is Responsible for Injuries on Jointly Owned Property? (Civ. Code § 1714)
Underwood Law Firm, P.C.

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...

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Understanding Real Estate Contracts
Underwood Law Firm, P.C.

If 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....

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Code of Civil Procedure (CCP) Section 872.240—Joinder of Property
Underwood Law Firm, P.C.

The 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...

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What is the Home Equity Sales Contract Act (Civil Code section 1695)?
Underwood Law Firm, P.C.

Frequently, 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...

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Code of Civil Procedure (CCP) Section 872.220—Title Report
Underwood Law Firm, P.C.

The 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...

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What Disclosures is a Realtor Required to Provide in a Sale?
Underwood Law Firm, P.C.

Generally, 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...

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What are Klopping Damages?
Underwood Law Firm, P.C.

Oftentimes, 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...

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What is an Ejectment Action? (CCP § 3375)
Underwood Law Firm, P.C.

Ejectment 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...

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What is a Partial Taking in Eminent Domain? (CCP § 1263.410)
Underwood Law Firm, P.C.

Not 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...

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What is the difference between legal title and equitable title? (Evid. Code § 664.)
Underwood Law Firm, P.C.

The 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...

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What is a Writ of Possession? (CCP § 715.010)
Underwood Law Firm, P.C.

Writs 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...

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What is a Pre-Judgment Claim to a Right of Possession in Eminent Domain? (CCP § 1255.260)
Underwood Law Firm, P.C.

Eminent Domain proceedings will almost always end with the government taking title to private property after it pays out “just compensation” to a homeowner. But sometimes, the government begins condemnation proceedings against the backdrop of a large project with encroaching deadlines. In these instances, California law allows the entity to obtain possession of the...

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How Can You Expunge a Lis Pendens? (CCP § 405.4)
Underwood Law Firm, P.C.

A lis pendens – also called a notice of pendency of action – is a special type of legal document filed with a county recorder. Though its use is limited to lawsuits involving real property claims, its effect is powerful. Once recorded, it acts as “constructive notice” to all persons who would subsequently acquire...

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What is a Quiet Title Action? (CCP § 764.010)
Underwood Law Firm, P.C.

A “quiet title” action is a lawsuit where a property owner seeks to eliminate, establish, resolve, and “quiet” any other claims on the same property by anyone else. Once complete, the lawsuit will result in a perfect title enforceable in the courts. A quiet title action is thus an effective tool to establish and...

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What is a lis pendens? (CCP § 405.21)
Underwood Law Firm, P.C.

A lis pendens – also called a notice of pendency of action – is a special type of legal document filed with a county recorder. Though its use is limited to lawsuits involving real property claims, its effect is powerful. Once recorded, it acts as “constructive notice” to all persons who would subsequently acquire...

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What is the difference between a grant deed and a marital deed? (Civil Code § 1092)
Underwood Law Firm, P.C.

The deed to a property is the most important document a property owner has. It describes the title and its associated rights while operating as the conveyance of property itself. But not all deeds are the same, especially when marriage enters the equation. Marital deeds carry with them their own rules, rights, and duties...

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How do you sue “all unknown persons” in a quiet title action? (CCP § 763.010)
Underwood Law Firm, P.C.

Service of process is a crucially important part of every lawsuit in California. If a defendant is not served and thus does not receive notice of a lawsuit, then any judgment entered against them is void for lack of jurisdiction. While service of process can usually be accomplished with a registered process server or...

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In Eminent Domain, what must be included in a pre-condemnation offer? (Gov. Code § 7267.1)
Underwood Law Firm, P.C.

A pre-condemnation offer is a formal offer based on an appraisal that the government needs to offer a property owner prior to filing a condemnation claim in court. Condemnation is the special word given to eminent domain actions and should not be confused with the condemnation that is associated with those actions taken by...

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What are the rules for race-notice/recording in California? (Civ. Code § 1215)
Underwood Law Firm, P.C.

Sometimes, two or more persons claim to have an interest in the same piece of property. If these interests conflict, then the courts have to step in to adjudicate the dispute and decide whose title is true. But things can get messy when both parties appear to have valid deeds, free or forgery, or...

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What are the historical origins of joint-tenancies and tenancies-in-common? (Blackstone, Commentaries on the Laws of England)
Underwood Law Firm, P.C.

American law has its roots in the laws of England. As such, many of the laws still on the books in the 21st Century depend on what English judges thought prior to our War for Independence began in 1776. Because our modern laws go back centuries since before the United States was a country,...

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What is a Claim for Waste in California? (Civ. Code § 818)
Underwood Law Firm, P.C.

A “waste” claim is a means of recovering damages when a tenant on real property does substantial damage to the property itself. Most often, a waste claim arises when a person renting property causes damage while living there. But a waste claim isn’t restricted to landlords and tenants. It applies to nearly all situations...

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What is the difference between a grant deed and a gift deed? (Civ. Code § 1113)
Underwood Law Firm, P.C.

The deed to a property is the most important document a property owner has. It describes the title and its associated rights while operating as the conveyance of property itself. But not all deeds are the same. While grant deeds and gift deeds are incredibly similar, their differences can inevitably lead to legal disputes....

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Title Insurance and Title Guarantees: What’s the Difference? (Ins. Code § 12340.1)
Underwood Law Firm, P.C.

“Title” is the single most important word when it comes to purchasing a property. If there is a problem with it, then an entire real estate transaction can be disrupted or canceled outright. Many people consider the purchasing of a home to be the single most important transaction of their lives. Therefore, it only...

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What is an Elisor? (Corp. Code § 128(4))
Underwood Law Firm, P.C.

Just because a party prevails in a lawsuit does not mean the matter is over. Rarely discussed but crucially important is the fact that a judgment must be enforced once it is entered. This isn’t always easy. Losing parties don’t always want to cooperate, especially when they’re operating without an attorney. Sometimes, a party...

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Do All Owners Need to Sign a Real Estate Listing Agreement? (Corp. Code § 1624(a)(4))
Underwood Law Firm, P.C.

A realtor should take the necessary legal steps to ensure that all real estate owners do so. When most people buy or sell property, they hire a real estate agent to assist with the process. While the concept of these agreements seems simple enough, these agreements can get complicated when the property in question...

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Can an ousted cotenant recover possession of the property? (Civ. Code § 843)
Underwood Law Firm, P.C.

Yes. Co-owners of property are entitled to certain rights, namely, the right to possess and use the property as they see fit. But sometimes, things do not work out with the other owners. Heirs to an estate can bicker, business relationships can fall through, and family dynamics can fall apart. This may result in...

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How do you sever a joint tenancy in California? (Code of Civil Procedure section 683.2)
Underwood Law Firm, P.C.

Joint tenancy is a special type of co-ownership recognized in California. It is commonly associated with married couples, ensuring that when one of them dies, their entire interest in the property passes to the other spouse. This is called the right of survivorship, and it is the defining trait of a joint tenancy. The...

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What is the difference between a grant deed and a quitclaim deed? (Civil Code § 1113)
Underwood Law Firm, P.C.

The deed to a property is the most important document a property owner has. It describes the title and its associated rights while operating as the grant of the property itself. But not all deeds are created equal. While grant deeds and quitclaim deeds are the most common tools for transferring title, they carry...

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A Guide to Tenants-in-Common in California (Civ. Code § 682)
Underwood Law Firm, P.C.

Co-owning property as tenants in common is the favored form of joint ownership in California. (Wilson v. S.L. Rey, Inc. (1993) 17 Cal.App.4th 234, 242 (S.L. Rey).) Yet, property held in tenancy in common brings with it a unique set of potential issues that are not present in the other forms of joint ownership...

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What is the difference Between Tenants in Common and Joint Tenants? (Code of Civil Procedure section 683)
Underwood Law Firm, P.C.

In California, most real estate is held either as marital property, as a tenancy in partnership, as joint tenants, or as tenants-in-common. While holding titles as spouses or in a partnership is relatively straightforward, questions frequently arise as to the differences between “co-tenants” and “tenants-in-common.” This article will explore the difference between the second...

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Can a property owner testify as to the value of their property in eminent domain? (CCP § 1260.210)
Underwood Law Firm, P.C.

Yes. But it is a complex affair. Eminent Domain proceedings take on a unique structure with expert testimony as the backbone for the determination of fair market value. Neither side of the litigation has the burden of proof on this issue of just compensation, and unlike the traditional civil court case, the Defendant presents...

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What is pre-judgment interest on an eminent domain award? (CCP § 1245.220)
Underwood Law Firm, P.C.

Pre-judgment interests are accrued interests on judgment amounts. Eminent domain is when the government “takes” private property for the public’s use and then owes fair and just compensation to the original private property owners. An eminent domain award is the court-ordered judgment amount that is based on the fair market value of the property...

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​​Can a property owner sue for inverse condemnation when the government refuses to permit development?
Underwood Law Firm, P.C.

In certain situations, it is possible for a property owner to sue the government for inverse condemnation when the government refuses to permit development and that refusal results in a “taking” under the United States constitution. If the city, state, or federal government refuses to permit development, it must take away all or substantially...

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What types of uses are favored for Surplus Land? (Gov. Code § 54220)
Underwood Law Firm, P.C.

Everyone agrees that there is a shortage of affordable housing in California. There are many possible solutions to this problem, one of the solutions was the Legislature’s passage of AB 1486. What is the purpose of the Surplus Land Act? Government Code section 54220 sets the stage for the other provisions of the Surplus...

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Can You Recover from Pre-Condemnation Activity? (First English Evangelical Lutheran Church of Glendale v. Los Angeles County (1987) 482 U.S. 304, 316-322)
Underwood Law Firm, P.C.

The acquisition of private property for eminent domain usually proceeds on a long timeline. Before the government actually uses eminent domain to acquire private property, there is a substantial amount of planning. During the pre-condemnation period, which can stretch for years, a governmental entity often has the opportunity to make land use decisions about...

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What are the Benefits of Buying Surplus Land? (Gov. Code § 54225)
Underwood Law Firm, P.C.

When there is so much real estate to buy in California, it may not be clear why anyone would benefit from purchasing surplus land in the first instance. After all, it requires going through a negotiation process with a public entity and may take longer than other land purchases. There are some drawbacks to...

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Can You Contest The Title in a Partition Action? (CCP § 872.210)
Underwood Law Firm, P.C.

In many ways, partition actions are relatively straightforward. Generally, in a partition action, the two property owners cannot agree on its use, and one of the owners asks the court to sell the property so each can go their separate ways. The question arises of whether one of the two persons actually owns the...

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The Surplus Land Act’s Pre-Negotiation Notice Requirement (Gov. Code § 65088.4)
Underwood Law Firm, P.C.

The revised Surplus Land Act contains negotiation requirements to encourage the sale of surplus public land. Also, the law makes it more likely that the land will ultimately be developed for as much housing as possible. Prior to entering negotiations, however, AB 1486 requires that the agency selling the surplus land must first give...

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What’s the Big Deal with the New Surplus Land Act? (Gov. Code § 54222)
Underwood Law Firm, P.C.

Everything old is new again. Or so it seems. Sometimes a new thing really is new. In this case, the question is whether the new Surplus Land Act is truly as big of a change as touted. After all, there was a Surplus Land Act before, and there’s a Surplus Land Act now. What’s...

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What is the purpose of the Surplus Land Act? (Gov. Code § 54221)
Underwood Law Firm, P.C.

The purpose of this article is to address the goals that California’s Surplus Land Act was designed to accomplish. The article will address the prior version of the Surplus Land Act, the changes to definitions made in 2019, and provide a big-picture perspective on its aims. In 2019, the California Legislature re-made the Surplus...

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How does a 1031 Exchange Work in Eminent Domain? (I.R.C. § 1033)
Underwood Law Firm, P.C.

As if eminent domain is not bad enough, after you’ve gone through the process, the government wants to tax you on the land it made you sell. Savvy property owners, however, can limit their tax liabilities through the use of a 1031 exchange process. Can a property owner limit the effects of eminent domain?...

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Why Don’t Business Owners Receive Compensation Offers in Eminent Domain? (Gov. Code § 7267.1)
Underwood Law Firm, P.C.

The purpose of this post is to address the process where a governmental entity makes an offer to purchase property in contemplation of the later use of the eminent domain. This post will address the rule that applies for offers prior to eminent domain, known as “pre-condemnation offers,” address specifics applicable to business, and...

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How Does a Partial Taking Affect My Property Taxes? (Treas. Reg 6 1.10233(a)-2(c)(10)
Underwood Law Firm, P.C.

The purpose of this post is to discuss how a partial taking of your property may affect your property taxes. Often, in an eminent domain action, there are at least two types of damages or payment required. First, the government should pay the property owner for the property actually taken. Second, when the government...

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How Does Eminent Domain Work?
Underwood Law Firm, P.C.

For many of us, real estate is our most valuable asset and the thing that we rely on to provide security for retirement. It is also our passion where we can use our creativity to make our mark on the world. When we receive notice that it may be the subject of an eminent...

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How do I respond to an Eminent Domain Lawsuit?
Underwood Law Firm, P.C.

What is the Eminent Domain Process? The eminent domain process begins with an environmental review, negotiations with property owners, a hearing before a public entity, and then eventually, an eminent domain lawsuit. After some preliminary negotiations, a public entity will generally hold a hearing on something called a “Resolution of Necessity.” This is a...

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Surplus Land Act Guidelines Released
Underwood Law Firm, P.C.

Surplus Land Act Government Code section 54230.5 contains the “penalty” or “enforcement” provisions in the updated Surplus Land Act enacted under Assembly Bills 1255 and 1486 in 2019. Specifically, Section 54230.5 (a)(1) creates a penalty of “30 percent of the final sale price of the land sold in violation of this article for a...

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What is the Surplus Land Act?
Underwood Law Firm, P.C.

Who is subject to the Surplus Land Act? Currently, as a result of the Legislature’s revision in 2019, the Surplus Land Act extends to any public entity within the State of California. Previously, the definition was limited to specified entities. If you have any questions about the Surplus Land Act, please contact Underwood Law...

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