BLOG

In the landmark case of Reed v. King (1983), the California Court of Appeal tackled the issue of whether a seller must disclose that a house was the site of a multiple murder. Dorris Reed purchased a house from Robert King, who, along with his real estate agents, failed to inform her that a woman and her four children had been murdered there ten years prior. Reed only learned about the murders from a neighbor after the purchase. She sued for rescission and damages, claiming the non-disclosure affected the property’s market value and desirability.

The court reversed the initial judgment, which had dismissed Reed’s complaint. It emphasized that sellers must disclose facts materially affecting the value or desirability of the property, especially if such facts are not readily observable by …

Imagine purchasing your dream property only to be blindsided by fines and legal battles over issues you didn’t create. This is the reality for the Thomases in Humboldt County, California. After buying a property unknowingly used for illegal cannabis cultivation by previous owners, they now face at least $1 million in fines due to an unpermitted structure. This case underscores the critical importance of thorough property investigations before buying, as hidden violations can lead to significant financial and legal consequences for new homeowners.

Background

In 2019, Humboldt County’s code enforcement department raided the property in Miranda, an unincorporated community, and shut down an illegal cannabis operation. The then-owners were cited for unlicensed cultivation and having an unpermitted structure, leading to an administrative penalty of $12,000 over 90 days.

Six days …

In a landmark decision that has significant implications for borrowers, the California Court of Appeal in Honchariw v. FJM Private Mortgage Fund, LLC ruled that excessive default interest and late fees in non-consumer loans can be deemed unenforceable penalties. This ruling serves as a critical reminder for borrowers to be vigilant about the terms of their loan agreements and offers a pathway to challenge unfair penalty provisions.

Case Background

Nicholas and Sharon Honchariw borrowed $5.6 million from FJM Private Mortgage Fund, LLC, secured by commercial real estate. Their loan agreement included an interest rate of 8.5% per annum, a 10% late fee on missed payments, and a default interest rate that increased to 18.49% upon any default. When the Honchariws missed a payment of $39,667 on September 1, 2019, these …

In the complex world of real estate, the accuracy of deed documentation is crucial for maintaining a clear chain of title. Errors in the names of grantees or grantors can lead to significant legal and financial complications. Understanding the process of correcting these errors is essential for property owners, real estate professionals, and attorneys. This blog delves into the methods and legal considerations for correcting identity errors in deeds, drawing insights from Miller & Starr’s authoritative guide on California real estate law.

The Importance of Correcting Deed Errors

When a deed contains a misnomer or a slight difference in the spelling of a name, it can create ambiguity about the identity of the property owner. Such discrepancies can disrupt the chain of title, making it difficult to establish clear …