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Real Property

The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.

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Counties that impose a documentary transfer tax may require that any deed or other conveyance state on its face the assessor's parcel number of the property being transferred  However, this decision holds, that the parcel number cannot create an ambiguity as to the bounds of the property being conveyed if the deed otherwise fully describes the conveyed property.  The parcel… Read More

The Housing Accountability Act (Gov. Code, § 65589.5), adopted to ease California's shortage of affordable housing, restricts local agencies' ability to block "housing development projects" or require them to reduce their proposed housing density.  This decision holds that the act does not apply to a project that proposes to build only single-family residences, not any multiple family housing units. Read More

An exclusive implied easement which, for all practical purposes, amounts to fee title cannot be justified or granted unless: 1) the encroachment is “de minimis” or 2) the easement is necessary to protect the health or safety of the public or for essential utility purposes. Here, a wall erected on what the prior owner of both adjoining lots thought was… Read More

Particularly as amended in 2019, Civ. Code 2923.7 requires a loan servicer to appoint a SPOC for each borrower who seeks a foreclosure alternative.  The borrower need not specifically request a SPOC in order to trigger the statute.  Interpreting Civ. Code 2924.12, the decision holds that for post-foreclosure damages purposes, the court must analyze harm in three steps.  First, did… Read More

The Supreme Court holds that lenders and loan servicers do not owe borrowers a duty of care in handling their loan modification applications.  Lender and borrower are in privity of contract, and the economic loss rule prevents recovery for purely economic loss based on negligence between contracting parties.  The Biakanja factors apply only to parties not in privity of contract. … Read More

To enforce a judgment by sale of the judgment debtor's dwelling, the creditor must, among other things, obtain a court order directing the sheriff to sell the property.  The application to obtain that court order must state the amount of all liens and encumbrances on the property that are senior to the judgment lien.  This decision holds that the application… Read More

This decision upholds Palm Springs' ordinance allowing short term rentals of dwellings in areas designated for residential use under its zoning ordinance.  The decision first points out that even if the short term rental ordinance conflicted with the zoning ordinance, it would not be invalidated as a result.  Both ordinances were enacted by the same city council and have the… Read More

Defendant bought the property adjacent to plaintiff's property and improved the purchased property with a drip-irrigated walnut orchard.  A strip of land on defendant's side of the fence between the two properties was actually plaintiff's property.  After defendant completed the orchard improvements, plaintiff sued for trespass on that strip of land and sought an injunction requiring defendant to restore the… Read More

Plaintiff owner of a gated residential community sued defendant, a private water company, for repeated failures of a 12-inch water main that defendant constructed at plaintiff's request to serve two fire hydrants in the development as well as the domestic water needs of the residents.  This decision affirms the defense judgment.  The inverse condemnation claim failed because the water main… Read More

The trial court abused its discretion in dismissing this action as a sanction under CCP 128.7 on the ground that there was no reasonable ground for thinking it was not barred by the statute of limitations.  The action sought to quiet title to the property that the plaintiff had purchased in 2008 with knowledge of prior agreements purportedly assigning "coverage… Read More

A grant deed cannot be delivered to the grantee conditionally.  Delivery to the grantee, or to his agent as such, is necessarily absolute, and the instrument takes effect on delivery, discharged of any condition on which the delivery was made, unless the condition is stated in the deed itself.  Here, before their divorce, wife delivered grant deeds to two properties… Read More

In a quiet title action, if summons is served by publication, the published notice must describe the property at issue, giving either or both of its street address or legal description.  (CCP 763.,020.)  Here, the published notice gave only the assessor's parcel number.  As the notice did not comply with the statute, it was insufficient; so the default of the… Read More

Wife executed will that purported to sever joint tenancy ownership of real property held in the name of wife and husband.  The will directed that wife's estate be distributed equally to her five children.  Husband never probated wife's will after her death, and his will and trust distributed his estate to three of wife's five children who were his biological… Read More

Under Civil Code 4740(a), an amendment to CC&Rs prohibiting the leasing or rental of units within a common interest development are not effective against those who acquired  their ownership of property within the development before the amendment was adopted.  This decision holds that the section applies to an amendment banning short-term rentals or leases, not just provisions that ban all… Read More

A party cannot acquire good title by adverse possession against the beneficiary of a deed of trust that was recorded on the property before the alleged adverse possession began.  This is for third reasons.  First, the beneficiary has no right to possession of the property until after foreclosure on the deed of trust.  Since the beneficiary cannot oust the alleged… Read More

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