Legal Question in Real Estate Law in California

Is there deed of trust legal, who is true owner?

Party A grants fee simple free and clear property in question to Party B and is recorded 1st

Then Party C with whom an agreement is made, (without knowledge that party c no longer holds title)

records deed of trust on propm. note

no $ changes hands and no funds are given to any party

Party B then quitclaims to party D who has lived & whose sole livlihood has been done on said property for more than 50 yrs.

Deed of trust is based on the fact that party C owned title

Party B has in possesion ORIGINAL DEDD OF TRUST, not a Dup Orig or Copy but original

Party c then assigns right to collect to party E (w/o notification to Party B or Party D)

who files claim against Party C for debt owed claiming to be the legal owner of Deed of Trust with the Original

Who has legal right to property?

Can Party B sue for back taxes owed by Party A, and for fraud by Party C and E?


Asked on 9/30/01, 3:10 pm

2 Answers from Attorneys

Ken Koenen Koenen & Tokunaga, P.C.

Re: Is there deed of trust legal, who is true owner?

You have way too many parties here to give you a difinitive answer to your question. There could be issues of fraud, there could be issues as to the validity of one or more of the deeds, there is a questioon as to title insurance.

If you are in northern California, give me a call and we can discuss in a little more detail. Or, you can fax some of the documents to me for review. T: 925-924-0100; F: 925-397-3044

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Answered on 11/06/01, 8:23 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Is there deed of trust legal, who is true owner?

Although your question sets out a lot of facts, some essential facts are omitted. The first omitted fact is that you do not say with whom C made an agreement. You do not make it clear whether there is one deed of trust or two, nor who are the trustor (borrower) and beneficiary (lender). You should provide dates for every deal, deed, document, transaction, etc., sufficient to place everything in sequence. Also, did C ever hold title, or have any colorable interest (such as an equitable interest) in the property?

As a partial answer B may be able to recover from A for back taxes, since a fee simple grant deed implies a warranty of good title, and unpaid taxes are an impairment. However, without dates I cannot say whether the statute of limitations has run out. Did B pay the taxes?

Finally, the facts do not clearly set forth the relationship or transactions between A, B and D on the one hand, and C and E on the other. Except for the deed of trust mentioned, there seems to be no connection. Who lost money or property on the deal? There has to be an injury before there can be a successful lawsuit and recovery. There is no private lawsuit for "attempted fraud."

I'd like to help, but this complex set of facts needs more meat on the bones.

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Answered on 11/06/01, 8:24 pm


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