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Correcting Identity Errors in Real Estate Deeds: Ensuring a Clear Chain of Title

July 4, 2024 | By
Correcting Identity Errors in Real Estate Deeds

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 …

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Posted In: Blog, Real Estate Transactions

Buyer Beware: Court Upholds Broker’s Commission Claim in Real Estate Dispute

July 1, 2024 | By
Court Upholds Broker's Commission Claim in Real Estate Dispute

In Chan v. Tsang, the California Court of Appeal examined whether a buyer’s broker can recover a commission from a buyer who unjustifiably refuses to complete a real estate transaction. The court determined that the buyer was responsible for paying the broker $100,000, the commission that would have been earned from the seller if the buyer had fulfilled the purchase agreement.

Tsang (the Buyer) expressed interest to Chan (the Broker) in purchasing commercial property. The Broker introduced the Buyer to a property owned by Mountain View Center Associates (the Seller). The Seller accepted the Buyer’s offer of $4 million, with the Broker’s commission set at $100,000.

However, the Buyer later backed out of the deal without any valid reason. This led to lawsuits between the Seller, the …

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Posted In: Blog, Broker/Agent Liability, Real Estate Litigation

Understanding Seller Financing: Key Questions and Legal Considerations

June 22, 2024 | By
Understanding Seller Financing: Key Questions and Legal Considerations

Seller financing, also known as a seller “carry back,” is when a property seller extends credit to a buyer to assist with the purchase. This approach can simplify transactions but requires compliance with various state and federal regulations. Here’s an overview of crucial points and common questions regarding seller financing.

Key Questions to Consider in Seller Financing

  1. Specific Disclosures:

    • California law mandates specific disclosures for certain seller financing transactions. For instance, the Seller Financing Addendum and Disclosure (C.A.R. form SFA) is necessary for 1-4 unit residential properties when an arranger of credit is involved.

  2. Arranger of Credit:

    • Typically, the buyer’s real estate agent acts as the arranger of credit. This role can be played by anyone who is not a party to the sale and who is involved
…
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Posted In: Blog, Real Estate Transactions

Demand Letters vs. Litigation: Choosing the Right Path for Your Dispute

June 19, 2024 | By

When facing a legal dispute, one of the first decisions you’ll need to make is whether to start with a demand letter or proceed directly to litigation. Each approach has its own set of advantages and disadvantages, and the best choice depends on the specifics of your situation. 

What is a Demand Letter?

A demand letter is a formal written request sent to the opposing party, outlining your legal claims and the actions you want them to take, such as paying a debt or ceasing a particular behavior. The letter often serves as a precursor to litigation and is designed to resolve the dispute without the need for court intervention.

Pros of Using a Demand Letter

  • Cost-Effective

      • Demand letters are significantly cheaper than litigation. The cost of drafting and
…
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Posted In: Blog, Client Resources

Zoning Laws and Land Use Disputes: Legal Insights and Solutions

June 14, 2024 | By

Zoning laws and land use regulations are crucial in shaping the development and organization of communities. They dictate how land can be used, what structures can be built, and ensure that property use aligns with community goals and standards.

However, these regulations can also lead to disputes, often requiring legal intervention to resolve. In this article, we will explore the intricacies of zoning laws, common land use disputes, and how a real estate litigation lawyer can provide effective solutions.

Understanding the Zoning Laws in California

Zoning laws are local regulations that govern how land can be used within specific areas or “zones” of a municipality. These zones can include residential, commercial, industrial, agricultural, and mixed-use areas, each with distinct rules and restrictions.

The primary objectives of zoning laws are to:…

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Posted In: Blog, Real Estate Transactions

Understanding Partition Actions in California: A Guide for Co-Tenants

May 30, 2024 | By

In California, partition actions are a common legal remedy for co-owners who want to end their shared ownership of a property. This process can lead to either the sale of the property and division of the proceeds, or the physical division of the property into separate parcels.

This article will guide you through what a partition action entails, especially focusing on how co-owners can manage improvements and repairs to the property. We’ll delve into the rights and responsibilities of co-tenants, how to claim reimbursement for property enhancements, and the intricacies of handling these situations in court.

The Partition Action

In California, a partition action is a civil procedure used by a co-owner to end joint ownership of a property. This can result in either the sale of the property and …

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Posted In: Blog, Partition Actions, Real Estate Litigation

Common Liens and Judgments

May 23, 2024 | By

Property liens are legal claims that are placed on a piece of real estate (Real Property). They are usually the result of debts that the property owner owes. For example, if a homeowner fails to pay their property tax, the government can put a tax lien on the homeowner’s property.

When a property has a lien,  it means that there is a barrier to selling the property.

The homeowner cannot sell their home unless the lien is removed. In some cases, property liens can even lead to foreclosure. For instance, if a homeowner fails to pay their mortgage, the lender can take possession of the house and sell it to pay off the debt.

There are different types of property liens. They can be either general or specific, and voluntary …

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Posted In: Blog, Foreclosure, Real Estate Litigation

Understanding Foreclosure: A HANDY REFERENCE GUIDE

May 21, 2024 | By

What is Foreclosure?

When a homeowner fails to make the payments due on their home loan, the mortgage company can ‘foreclose’. This means that the lender can force a sale of the home to pay for the outstanding balance of the loan.

Timeline of a Foreclosure

Day 1 You are in default two days after your payment is due.
Day 32 You have now missed two monthly payments.
 

Day 32-90

 Sometime during this period you will receive a letter stating that the Notice of Default (NOD) has been recorded. The speed with which lenders send NOD depends on the policy of each individual lender.
 

NOD Recorded

 From this day, the next 90 days is a silent period. You have this time to pay all back payments, fees, and other charges
…
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Posted In: Blog, Foreclosure, Real Estate Litigation

Quiet Title Actions Explained

May 20, 2024 | By

The purpose of a quiet title action is to establish title against adverse claims to real property or any interest in the property. [Code Civ. Proc. §760.020] The remedy of quiet title can be combined with other causes of action or other remedies. In an action or proceeding in which establishing or quieting title to property is in issue, the court may, in its discretion and on the motion of any party, require that the issue be resolved pursuant to the Code Civ. Proc. provisions relating to quiet title actions. [Code Civ. Proc. §760.030]

Jurisdiction

A quiet title action must be brought in the superior court of the county in which the real property is located. Once the action is before the court, the court has complete power to determine …

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Posted In: Blog, Quiet Title Actions, Real Estate Litigation

Equitable Easements in California: Insights from Romero v. Shih

May 17, 2024 | By

In the notable case of Romero v. Shih, the California Court of Appeal dealt with a failed lot line adjustment and its transformation into an equitable easement, providing a significant learning point for legal professionals, especially those in real estate and property law.

Background of the Case

The case revolved around two adjacent residential lots that had been under the same ownership since 1941. An attempt was made to adjust the lot lines to prevent practical issues with a driveway on the narrower lot. Despite initiating the process, including obtaining a zoning variance and preparing a new map, the adjustment was never formally recorded. This oversight led to subsequent ownership disputes when the lots were sold, using the original legal descriptions, and new owners found discrepancies in the lot …

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Posted In: Blog, Easement and Encroachment Actions, Real Estate Litigation

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