Legal Question in Real Estate Law in California

Re: real estate law

It sounds like you're talking about a Real Property Sales Contract, often called a land sale contract. This is a type of purchase and sale agreement where the seller (vendor) retains title to the property until the buyer (vendeee) completely pays off the purchase price. These types of contracts are governed by the Civil Code, Sec 2985, et seq.

Transactions of this nature are very carefully regulated due to the opportunity for abuse.

Let me know if you need more information.

Regards,

Tom Newton

Re: real estate law

If this was a "land contract" or as it is also called a "contract for deed," Mr. Newton's answer covers your question. The basic premise of a land contract is that if you, the vendee, make all the payments and fulfill all the other contract terms, at the end of X years the vendor will give you a deed. Such deals are legal in California, but relatively rarely used except in specialty situations like subdivisions of unimproved land (hyped by the developers as "mini-ranches" or "country estates") and time-shares. Note that with land contracts the parties are referred to as the vendor and vendee. If these terms appear in an agreement, this is likely what was intended.

It's also possible that you have something very different in mind; for example, it's possible for X to sell his house to Y but fail to execute and deliver a deed, in which case we have an unintentional incomplete transaction in which Y has a lien on the house and X has a lien for any portion of the purchase price that hasn't been paid or financed by a secured note. Equitable title to the house passes upon execution of the agreement of sale, but legal title will not pass until a deed is delivered.

Yet another possibility is that a deed was delivered by the seller to the buyer, but the buyer failed to record ("file") the deed. An unrecorded deed is valid between the parties to it and others with knowledge of its existence (which knowledge can be actual or "constructive") but is not valid against parties with no knowledge, so always record your deed promptly!

If I can be of further assistence, plase contact me directly.