Legal Question in Real Estate Law in California

Should I buy divided property?

The property is 5 acres and has two mobile homes on it, surrounded by fence between each other, claimed as one main house with a guesthouse. I rent the latter. Taxes are being paid for the main house and the land. Each mobile home is insured under a different finance company. One home is at address e.g. 123 Road, while the other is listed as 123 1/2 Road. I went to the Tax Assessor office to see if there is any new information I will need to worry about. He pulled up two records with separate recorder numbers. There was one from about 10 years ago, with the landlord's and his spouse names listed as Tenancy in Common. His wife died soon after, leaving everything to her husband, in the will. About 5 years later, it shows only his name as Spouse Tenancy in Common. At this same time, he did a quitclaim deed from himself to himself, a living trust, and a property ownership transfer to himself. I don't know if any of these documents have been transferred or recorded with the county court. The tax assessor seems disturbed with her name shown on the property, ...with the quitclaim deed, and other things. Is it a wise choice to enter into buying this property? What other main things should I be concerned with?


Asked on 8/08/01, 5:44 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Should I buy divided property?

You haven't said which part of the state you live in; there are some differences in practices from county to county. Also, you haven't said whether you plan to pay all cash or borrow, and if the latter whether the owner/seller will carry.

In any event, your best protection will be afforded by closing the deal through a professional title company and escrow process. If there is an institutional lender this will be required; otherwise, it is just common sense and you should insist on it.

As part of the process, have the title company give you both a preliminary title report and then a final report along with a policy of title insurance. Satisfy yourself, at or before the closing, that the title insurance contains no unacceptable exclusions. Probably the seller will have to take some long-neglected steps like paying back taxes or having his deceased wife's name removed from the record. These steps should be the seller's responsibility. Also, if possible, get a grant deed, not a quitclaim.

Since there likely will be no seller's agent involved in your purchase, you might consider asking a local licensed real estate professional to act as your buyer's agent. They are trained to take care of much of the paperwork, but should not give legal advice. If any issue crops up that the agent is uncertain about, refer it to a local real-estate lawyer who has handy access to the courthouse there.

Finally, keep in mind that acreage cannot be subdivided at the whim of the owners anymore. You didn't mention subdivision, but the information suggests that you may be planning to buy part of the five acres. Splitting the five acres may range from easy to impossible depending on the zoning, the growth and development plans in place and the county's policies, but you do need permission.

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Answered on 8/08/01, 8:59 pm


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