Legal Question in Real Estate Law in California

My parents (who have since passed) have an $80,000 deed of trust on their property that dates back to 1983. I can't sell the home until the deed is cleared.

I can't find any record of payoff, nor is there a reconveyance.

I don't want to contact the trustee and ask them to reconvey as I have no proof of payment. I don't want to pay that balance, nor am I able to litigate without much proof.

Is there a statute of limitations on how long a deed can sit quietly, without demand for payment, etc?

The title company who is helping with the eventual sale of their house, suggested I take out a "lost note" bond. I found out this bond won't protect me from a future lawsuit if that company with the $80,000 deed becomes aware of this outstanding deed, and comes after me.

Could you please give me a suggestion about what to do?

Thank you very much.


Asked on 4/29/14, 3:09 pm

1 Answer from Attorneys
Anthony Roach Law Office of Anthony A. Roach

At one time, the power of sale never expired in a recorded deed of trust. The long standing rule that there was no limitations period prohibiting the exercise of the power of sale under a deed of trust changed in 1982, and there is now a limitations period provided by statute. In 1982, the California legislature enacted sections 882.020-882.040 of the Civil Code, which established for the first time a statute of limitations on the exercise of a power of sale in a deed of trust. This act is known as the Marketable Record Title Act (hereinafter referred to as the �MRTA�).

As it is currently drafted, the limitations period to exercise a power of sale under a deed of trust is ten (10) years from the date of maturity of the promissory note, if the date of maturity can be determined from public records. If the date of maturity cannot be determined from public records, then the limitations period is sixty (60) years from the date the deed of trust was recorded.

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Answered on 4/29/14, 3:21 pm


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