Legal Question in Real Estate Law in California

Re: property lien form

What you are talking about is a deed of trust; most stationary stores carry that form. You can get it off the web but will probably have to pay a fee. It is a simple form to fill out and then file with the County Recorder's Office. But you need to think certain questions through. If it is a first deed of trust then if you want to borrow money on the property you will have to get your friend to agree to subrogate their lien so the lenders comes first [second deeds of trust are normally at a higher interest rate when you can get them]. If the Deed you file outright states that he agrees his lien can be subrogated, it will be easier to get a loan. What if the property is foreclosed on so it is no longer security for the debt? What if you die. So you need to put in your Will that he gets whatever has not been already paid. So think it out first.