Legal Question in Real Estate Law in California

We loaned some money to my son against his property with a short form Deed of Trust (second trust deed) recorded in in California. The loan has been paid off and we want to reconvey the property back to him. The Short form Deed of Trust does not have a trustee name, it has the trustor's names (our son) and Beneficiary name ( me and my wife). All the reconveyance deeds have Trustee to sign the Reconveyance Deed. In absence of the Trustee in the document, how should we reconvey the property?


Asked on 11/04/09, 1:53 pm

1 Answer from Attorneys

That's a little tricky. I'm not entirely sure what happens in that case. My guess is that the beneficiary would be deemed the trustee, since the beneficiary could have named themselves trustee in the first place. I would try recording a Substitution of Trustee, listing the existing Trustee as "unnamed," and yourself as the new trustee. If the county recorder takes that, you can then record the reconveyance as trustee. If the county will not take it or says it would not be valid, your best bet is to contact a title company and ask their advice. No matter what a lawyer tells you, when your son goes to sell or refinance the property, what the title insurance company says gives clear title will mean a whole lot more than any technical legal answer.

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Answered on 11/09/09, 3:14 pm


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