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1) Liens (Money Encumbrance)
2) Non-Money Encumbrance
a claim, lien, charge, or liability attached to property. A burden on the title.
a charge upon specific property, secured by payment of a debt.
- A) Specific & General Liens
- B) Voluntary & Involuntary
a charge against a particular parcel or one subdivision (One on One)
E.X.; Trust deed, mortgage, property taxes, mechanic's lien, attachment)
One which applies to all property of an owner (One vs. many)
Ex.; Judgment, estate, taxes, decedent's debts, corporation franchise tax, federal income taxes
Those which owner can prevent
Those which he does not wish to accept
IE. Property taxes
lien on property to secure the payment of the unpaid claim by owner's agent
-Has priority over any other lien except taxes and assessment
- Could impair trust deed, recorded after work commence
-Notice of Completion, Notice of Cessation, and Notice of Non-Responsibilities
Preliminary notice (Mechanic's Lien)
20 days notice of first furnishing labor...
Filing Period (Mechanic's Lien)
Original Contractor: 60 days
Others: 30 days
If notice of completion is not recorded, all persons have 90 days.
court order to stop
Court process by which property may be seized and held as security for possible future judgment
- -Valid for 3 years
- -Writ of Attachment
A final determination of the rights of the parties in a court proceeding
- 1) Abstract of Judgment
- 2) Writ of Execution/ Execution Sale
Abstract of Judgment
creates general lien on all real property of debtor
-last up to 10 years
Writ of Execution/Execution Sale (Sheriff's Sale & Sheriff's Deed)
court order to sell (satisfy judgment)
Lis Pendens (In Lawsuit...)
Pending litigation, affect title to real property
-effective until final judgment is rendered
2) Private and Public Restrictions
Those which affect the physical condition or use of property.
right to enter and use another's land within definite limits
Land that is benefited
Land that is subject or burdened with the easement
buyer has the same right( run with the land)
Easement in Gross
easement for utilities
created by exclusive use of land (continuous and uninterrupted for 5 years)
-can be stopped
-non-use for 21 years is still valid
Termination of easements
quitclaim deed by owner of dominant tenement
-non use for 5 years for prescription easement
Private restrictions (H.O.A.)
if zoning law conflicts with deed (private) restrictions, the more restrictive of the two controls can be created by deed.
C.C. & R's
Condition, Covenant, and Restrictions
Public Restrictions (Zoning Laws);
to promote public health, safety, morals and general welfare.
-Zoning changes can be initiated by: owner, government and subdivider/developer
change in zoning law which restricts new development to a more restrictive use
I.E. rezoning commercial property to residential use.
an exercise of "Police Power"
sue neighbor or transferor
California law that gives limited protection to homeowner's equity from forced sale.
-Does not protect against foreclosure or recorded liens.
protects owner or lender against most undisclosed existing liens and encumbrance
-companies are controlled by Insurance Commissioner
-insurance rates are set by each company
Abstract of Title
summary of all document
Chain of Title
history of all recorded conveyances and encumbrances.
Preliminary title report
remove mechanic's lien before close of escrow
Standard Policy of Title Insurance (C.L.T.A)
- -for most home buyer (paid by seller)
- -protects against forgery, improper delivery & lack of legal capacity
-protects heirs & successors of owner
Extended coverage policy:
- on site inspection, survey
- -covers improvement on adjoining land (encroachment)
A.L.T.A (American Land Title Association)
- includes survey
- -benefit(Protect) lender
- -paid by buyer in escrow
Search Title through...
- 1) County Clerk Office
- 2) County recorder's office
- 3) Federal land office
The insured should neither gain nor lose.
trust arrangement, such as Agent
-Instruction executed by: seller, buyer, or third party with power of attorney
govern by Financial Code
Closing Statement (Escrow)
purchase price debit the buyer
prepaid taxes, fire insurance credit the seller
calculate amount of money involved (I.E. rent money)
- -use 30 days as one month
- -use 360 days as one year
: delinquent principal/interest on unsecured home improvement loan
1) Reserves (P.I.T.I, principal, interest, tax, insurance)
2) a recurring cost
Two termite report in Escrow
- Section 1 paid by seller
- Section 2 paid by buyer
Reports to...Anyone entitles to...
reports to IRS
-is not responsible for call for funding of Loan
TDS-11 (Transfer Disclosure Statement)
- 1) Given by transferor (Seller)
- 2) Reveal all material facts
- 3) Easton VS. Strassburger (1984)
- 4) Buyer may sue seller 2 years from C.O.E