Legal Question in Real Estate Law in California

Re: Assignment of Leases and Rents

I would recommend complying with this rreasonable-sounding request; refusing to cooperate could result in a court action to esablish the lender's right to record the instrument, which the lender would probably win and possibly you would have to pay their attorney fees.

What do you have to gain by refusing? They have the signed document, they simply can't record it, but they can enforce it against you. Remember, the purpose and effect of recording a document is not to give the document legal effect, it is to give notice of the document to the rest of the world. Signed documents are effective against the parties and others with actual or constructive notice thereof, with or without recording.