Property Title “Clouds” in California
What Does It Mean if My Property Title Has a “Cloud?”
If you have a "cloud" on your property title, the property has an outstanding lien or unresolved issue that could lead to its confiscation for payment. Common types of clouds on titles include:
- Liens from a mechanic, bank, healthcare, etc.
- Easements
- Probate issues (Wills)
- Boundary disputes
Many of these issues can go unnoticed for years, only coming up during a title search. Given that title searches typically only take place during the buying and selling process, clouds on titles often cause complications for property owners and prospective buyers.
Should I Be Concerned if I Find a Cloud on My Title During the Selling Process?
Generally, yes. People looking to buy are generally weary of purchasing a property with a cloud on the title, given that this can invalidate the owner’s right of ownership over the property. Laws may prevent you from selling the home until the title issue is resolved, depending on the type of cloud.
How Can I Get a Cloud Title Removed From My Property?
Luckily, property owners can often resolve many types of title clouds through a "quiet title action." This is basically when a property owner presents the title to a court, who decide who must resolve the title. The information one would submit includes:
- A description of the property that is the subject of the action. This must include both the legal description and the street address or common designation, if any.
- The title of the plaintiff as to which a determination of quiet title is sought. If the complaint is based on adverse possession, the complaint must allege the specific facts constituting the adverse possession.
- The adverse claims to plaintiff’s title.
- The complaint must include the date for the sought determination. If it's different from the filing date, the complaint must explain why that specific date is requested.
- A prayer for the determination of plaintiff’s title against the adverse claims.
Possible Consequences of Having an Encumbrance On a Title
Having a cloud on your title can have significant legal and financial consequences. When attempting to sell or mortgage a property, financial institutions and buyers will require proof of "clean" title. If the restriction is not removed, the transaction may be delayed or canceled altogether. In addition, even after purchasing a cloud property, a buyer may face restrictions on the use or possession of the property. If you are trying to:
- attract investment
- obtain a loan secured by real estate
- register a title
the presence of the cloud may make these actions more difficult. Some types of restrictions, such as pending probate cases, may be difficult to resolve. You will need professional legal assistance.
Checking Title History
To prevent such situations, it is important to conduct a thorough title search. This is done before you buy or sell a property. This includes obtaining a title report. This reflects any recorded restrictions and potential risks. Such a report helps to identify problems in advance and take corrective action. In addition, the inspection should be done not only at the time of the sale of the property. But also on a regular basis, especially if you inherit the property. Or became the owner as a result of divorce proceedings. It is also worth remembering that some encumbrances, such as oral agreements on the right of use. may not be recorded in the official records and require separate legal consideration.
Why It is Important to Seek Legal Advice
Timely consultation with an attorney will not only allow you to determine the nature of the encumbrance, but also to develop a strategy for eliminating it. Depending on the situation, this may involve
- the filing of a lawsuit to establish rights
- the procedure of cancelling an unlawful record
- appeal to the court in inheritance matters
- resolving a dispute with neighbors
Regardless of the nature of the problem, a qualified attorney will help reduce the risks and protect your interests. KAASS LAW offers professional legal assistance. Our attorneys can help:
- determine the cause of the problem
- represent your interests in court
- provide a "clean" registration of rights to real estate
Contact us for a qualified consultation.
Glendale Real Estate Attorney
Be aware that a quiet title action is different than removing a cloud title, which may be necessary to completely void the record of the cloud on your title depending on the type of cloud it is. Consult a real estate attorney to determine if a quiet title action can resolve your title issue or if cancellation is necessary. We invite you to contact our Glendale real estate attorney today at (310) 943-1171 for a free consultation. We can assist with resolving clouds on your property title through effective legal strategies.
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A quitclaim deed is unlike any other deed. It's a quick and simple form that can be completed in minutes to transfer real estate properties. However, despite their numerous benefits, quitclaims are not appropriate for every real estate transaction. These deeds, however, do not guarantee that the seller has any interest in the property at all. This makes them unsuitable for regular real estate transactions.
What Are the Benefits of Quitclaim Deeds?
A quitclaim deed is a quick and easy way to transfer property ownership, but it is only recommended in certain circumstances. A quitclaim deed is a legal document that transfers real estate ownership from one person to another. Quitclaim deeds are simple forms for transferring real estate interests. They are short forms that you can fill out quickly and sign in front of a notary. All that remains is to enter the buyer's and seller's names, as well as the legal description of the property. Most states, including California, require you to sign in front of a notary.
What Are the Drawbacks of Quitclaim Deeds?
Don't be swayed by the quitclaim's ease of use and invite it into every real estate transaction. Because it transfers all of one person's interest in the property to another, a quitclaim deed is quick and simple. On the other hand, it makes no guarantees about what that interest might be. The deed transfers any claims the seller may have to the property. If the seller has no ownership interest in the property, no ownership interest is transferred. If he owns 10%, 40%, or 80% of the property, that is what is assigned to him. A quitclaim deed also makes no guarantees regarding liens, leases, or other interests that may affect the property.
Using a Deed to Transfer Title
There are various methods for transferring real estate title. When properly sold to a third party in a typical real estate transaction, the most common type of deed is a warranty real estate deed transfer. A warranty deed guarantees that the person transferring the property owns it and has the right to sell it. It includes buyer protections such as compensation if anyone else has superior title to the property. This type of deed guarantees that no liens, such as a mortgage, tax lien, or creditor's liens, exist on the property. When a warranty deed is signed, a title search (a search of the property's past deeds and liens) is performed to ensure the seller has good title. Title insurance is typically purchased as part of the transaction to protect the new owner in the event of a problem. After being executed, warranty deeds are always filed with the county.
When the Trustee Passes Away, What Happens to the Revocable Trust?
Everyone wants to ensure that their loved ones are safe at all times. For the vast majority of people, this entails creating an estate plan. A comprehensive Estate Plan, such as a Trust-Based Estate Plan with Trust & Will, includes everything you need to protect your assets and loved ones both during your lifetime and after you die. When a Revocable Trustee dies, it is up to their Successor to settle their loved one's affairs and close the Trust. The Successor Trustee follows all assets, property, and heirlooms as specified in the Trust, as well as any special instructions. When someone is appointed as a Successor Trustee, they may be unsure where to begin in settling the Estate. In this guide, we'll go over the fundamentals of Revocable Trusts and the process of closing out a Trust when the Trust maker dies.
Contact a Los Angeles Attorney Today
For more information on what these types of deeds entail or if you have any questions about this topic please contact our office at 310.943.1171.
Real estate transactions are usually the biggest financial process and undertaking for anyone involved in the matter. We rely on and depend on expertise that provides guidance from real estate agents. Normally, they should help guide this complex process, which leaves a place of trust in them for their financial well-being and future. Doing this, while most agents operate with professionalism and integrity, we expect nothing less than that. However, not everything foes according to place. Consequentially, situations and problems occur where an agent fails to uphold their contractual obligations. As a result, this leads to financial losses and significant stress for their clients. At KAASS LAW, serving clients throughout California, we understand the intricacies of real estate contracts and are here to shed light on how real estate agents can breach these agreements.
Understanding A Real Estate Agent
The relationship between a real estate agent and their client is typically governed by a legally binding contract, often a listing agreement (for sellers) or a buyer-broker agreement (for buyers). These contracts outline the duties and responsibilities of the agent, the scope of their services, the duration of the agreement, and the agreed-upon commission structure. When an agent fails to fulfill these contractual obligations, it can constitute a breach of contract.
Breach of Loyalty
Loyalty refers to the duty of the real estate agent to act only in the client's best interests when assisting them in their affairs. This means that doing something during the home buying/selling process that is meant to serve the agent's or a 3rd party's interests could constitute malpractice, even if it was not necessarily detrimental to the client.
Breach of Reasonable Care
Real estate agents and brokers are expected to use a certain standard of care when handling their client's real estate transactions. The standard of care for agents is that of a competent real estate professional, one who has significantly more knowledge of real estate than the average person. Failure to act within the required standard of care would be a breach of contract.
Breach of Confidentiality
It is required that agents do not disclose information that would hurt their clients' chances of buying or selling a home for the best possible price. However, they are not required to remain confidential withholding the information would be a contract breach act itself.
Disclosure
While certain information must be confidential by real estate agents, they also have the duty to disclose certain information when they are both buying and selling a property. A realtor assisting someone with buying a property must disclose information such as:
- The lowest possible price that they know the seller will accept.
- Any issues or defects with the property that they know of.
- Other offers that relate to the property.
A realtor assisting someone in selling a property must disclose information such as:
- All offers regarding on their property, and the identity of the people makes them.
- Anything that may affect the property value.
- A buyer's intention to "flip" their property upon sale (buy and sell shortly after for profit).
Obedience
Obedience simply means that the agent must obey the commands of their clients unless those requests are outlawed by either their contract or the law. The client has the ultimate say in whether they should take an offer or wait for a better one, for instance. The client cannot, however, tell them to hide the fact that the air conditioning unit must have a replacement.
Accounting
Accounting refers to the agent's duty to safeguard and keep track of all money and documents entrusted to them. This makes it their responsibility to make sure they correctly bill the client and do not release private or sensitive information, especially if it would hurt their bargaining power.
Contact Us
Real estate transactions involve significant investments, and you have the right to expect your agent to uphold their contractual obligations and act in your best interests. If you believe your real estate agent has breached their contract and you have suffered financial harm as a result, it is crucial to seek legal counsel. We can help in the following ways: Review your contract: Analyze the terms of your listing agreement or buyer-broker agreement to determine the agent's obligations. Investigate the circumstances: Gather evidence to determine if a breach of contract has occurred. Assess your damages: Help you quantify the financial losses you have suffered due to the agent's actions. Explore your legal options: Advise you on the best course of action, whether it involves negotiation, mediation, arbitration, or litigation. Aggressively advocate for your rights: Represent your interests to seek the compensation and justice you deserve. Entrusting a real estate agent with your property or your search for a home requires a significant degree of faith. When that trust breaks due to a breach of contract, KAASS LAW is here to provide legal support. Additionally, given the circumstances, we can represent that you need to navigate the complexities and pursue a just resolution. If you have concerns about your real estate agent's conduct, contact us today for a confidential consultation. Our office can also help anyone who is dealing with real estate purchase and sale disputes.
What is Senate Bill 9?
Senate Bill 9 is a new law that was signed on September 16th that rezones single-family neighborhoods and urban parcel splits. The bill covers housing development.
How Will Senate Bill 9 Change State Law?
Senate Bill number 9 will provide the following changes:
- The Bill allows homeowners around the state to divide their property into two lots; and
- Allows homes to be built on each of those lots that otherwise would only allow one home/unit on the lot.
How Will Single-Family Residential Zones Change?
Single-family residential zones will allow for partial or full teardown of an existing single-family home to create residential units that can be sold separately will be allowed.
Does Senate Bill 9 Work Together with ADU Law?
Yes, Senate Bill Number 9 works together with ADU law.
What is a Accessory Dwelling Unit "ADU"?
ADU stands for accessory dwelling unit. Also known as "backhouses" or in-law units that typically constructed on property with an existing single-family house/unit.
How Do Senate Bill 9 and ADU Work Together?
Under Senate Bill 9, more ADUs will be built on land that has an existing single-family residential unit without the public’s review. Additionally, it is important to note that local ordinances will be observed in that those local ordinances that physically stop constructions of units cannot be enforced. An example of local ordinances includes those that preserve views or allow designated areas for bike paths.
May the Single-Family Home Be Demolished?
Yes, the single-family home may be entirely demolished if tenants have not lived in the home during the past three years otherwise, only 25% of the home may only be demolished. However, local ordinances that allow more than 25% of the home to be demolished can override the 25% limitation.
Does Senate Bill 9 Have Any Limitations?
Yes, Senate Bill 9 does have limitations, which are as follows:
- Low-income housing units cannot be changed or demolished;
- Those units that have been rented within the last three years cannot be changed or demolished;
- An individual who is applying to subdivide a lot must live in one of the units for at least three years;
- Each subdivided lot must be at least 1,200 square feet and about the same size.
Real Estate Attorney
If you or someone you know owns the land and is thinking about taking advantage of Senate Bill 9, please contact our real estate attorney at (310) 943.1171 for a free consultation.
