Legal Question in Real Estate Law in California

I cannot think of any reason why the pendency of a quiet-title action would automatically, as a matter of law, forestall a "foreclosre sale" (a trustee's sale under a power of sale clause in a deed of trust). On the other hand, it would seem rather imprudent for the secured party to invoke its right to sell under circumstances where there was a substantial unresolved issue affecting title.

In analyzing whether the quiet-title suit and/or the foreclosure is or are "proper" and what effect one might have on the other, more facts would be very helpful. Such information might include (1) the timing (sequence) of the two actions; (2) the capacities of the parties to each action, and their relationships to each other; (3) whether there is a properly filed and served Notice of Pendency of Action (Lis Pendens) in the quiet-title action; and (4) whether either action was triggered by the other.

Finally, note that while a quiet-title action is "in court" before a judge and almost all foreclosure sales are "private" in that no court is involved, there is a great deal of statutory and case law as to how both processes may be conducted. A careful examination of the two processes involved in your question might very well show some legal mis-steps being taken by one or more of the parties involved. See, e.g., a recent Los Angeles case, Deutsche Bank v. McGurk, 2nd Appellate District Case No. B231591.....I do not yet have a citation to its publication.

The fact that a quiet title lawsuit has been filed does not automatically stay the exercise of sale by a trustee under a deed of trust. In fact, a quiet title action would not stop any sale. It is for this reason that quiet title actions require the serving, recordation, and filing of a notice of pendency of action (lis pendens). The lis pendens puts the world on notice that a lawsuit is pending regarding the issue of title, and any purchaser takes subject to the court's judgment

There are only two (2) ways to stop an actual trustee's sale. The first way is to have the court issue a temporary restraining order, followed by a preliminary injunction. The other way is to ile bankruptcy, triggering the automatic stay.

Sure.

If you have proper factual and legal grounds to seek a restraining order to prevent or delay the sale, you'll have to bring that motion in court. If serious about hiring counsel for this, feel free to contact me and be prepared to show what would convince a judge and justify such a court order.