Legal Question in Real Estate Law in California

Re: quiet title action: effect of preexisting mortgages

First, your neighbor's lender is the mortgagee, not mortgagor. The borrower is the mortgagor.

Title acquired by adverse possession is "sufficient against all" according to the Civil Code, section 1007, except that property interests devoted to a public use by a public utility or dedicated to or owned by the state or any public entity are not subject to adverse possession.

This means that a mortgagee or a trust deed beneficiary lose their rights in the land.

After the five-year period of adverse possession has run, the claimant must file and win a quiet title suit, properly pleaded and served. Only then will the public record show ownership vested in the claimant, giving him marketable title.

The trust deed or mortgage lender will have lost some (or perhaps all) of its collateral, but the borrower will still be liable on the note in many cases.

The biggest problem with claiming adverse possession of a boundary strip often is establishing the requirement of paying the taxes. Taxes are assessed and collected on the basis of assessor parcel descriptions and field assessments of the improvements, etc. If the assessor maps are correct (i.e., agree with the deed) and the assessments and tax bills prepared and paid in accordance with the maps, there is little hope of the claimant proving payment of taxes on the disputed strip.

Re: quiet title action: effect of preexisting mortgages

The mortgage companies cannot block an adverse possesion action. I believe the adverse possession time period is seven years rather than that which has been stated in the previous reply. I also differ in the need to have paid taxes on the property, such a requirement would all but obliviate the cause of action. In any event, filing suit may force cooperation form the mortgage companies. Call me directly at (619) 222-3504.