Chapter 3

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

I.E.; mortgage

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

20 days notice of first furnishing labor...

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

creates general lien on all real property of debtor

-last up to 10 years

court order to sell (satisfy judgment)

Pending litigation, affect title to real property

-effective until final judgment is rendered

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 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

quitclaim deed by owner of dominant tenement 

-non use for 5 years for prescription easement

if zoning law conflicts with deed (private) restrictions, the more restrictive of the two controls can be created by deed.

Condition, Covenant, and Restrictions

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

summary of all document

history of all recorded conveyances and encumbrances.

remove mechanic's lien before close of escrow

• -for most home buyer (paid by seller)
• -protects against forgery, improper delivery & lack of legal capacity

-protects heirs & successors of owner

• on site inspection, survey
• -covers improvement on adjoining land (encroachment)

• includes survey
• -benefit(Protect) lender
• -paid by buyer in escrow

• 1) County Clerk Office
• 2) County recorder's office
• 3) Federal land office

The insured should neither gain nor lose. 

"Short rated"

trust arrangement, such as Agent

-Instruction executed by: seller, buyer, or third party with power of attorney

govern by Financial Code

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

Except: delinquent principal/interest on unsecured home improvement loan

1) Reserves (P.I.T.I, principal, interest, tax, insurance)

2) a recurring cost

• 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

• 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