Legal Question in Real Estate Law in California

Real Property

My friend owns (or owned) a house in Muscoy, CA free and clear. The property was in much need of repair, but nonetheless, worth something (everything to him). He cares for his invalid mother and receives payment from State for doing so. He wanted to sell property but was concerned he would have to pay back State for mother's care. He agreed to sell property to someone he didn't know for $175K but wanted it done in a way where it didn't show he got the money. Friend said buyer tricked him into signing a quitclaim, when he thought it was an informal purchase agrmt. Friend realized what happened few days later but buyer had already transferred property into his name. Now buyer is jerking him around saying he had to put all this $$ into property to fix and wants to deduct those sums from their agreed price of $175K. Also buyer gave friend a bogus Prom Note for $175K that was not even filled in. I told friend to go straight to DA in SB County, CA to report this but he hasn't. What recourse does he have against this guy who clearly is ripping him off? More info can be provided if you need.


Asked on 4/24/08, 3:37 pm

2 Answers from Attorneys

Mitchell Roth MW Roth, Professional Law Corporation

Re: Real Property

There is a maxim of equity law that one cannot come to a court of equity with unclean hands. Your friend has unclean hands, trying to hide assets to avoid payment to the state. Ironically, there was no need. He can sue civilly to quiet tile and void the deed. However, his gambit with the state may prevent him from getting the help of the court. There is another maxim of equity called in pari delicto, which is an exception to the uncleasn hands doctrine that may come to his aid.

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Answered on 4/26/08, 2:47 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Real Property

I'm a little tardy in posting a reply to this; some e-mails slip below the screen horizon before being handled and this was one such, but it just happened to resurface while I was looking for something else.

Although I somewhat agree with Mr. Roth's comments that the unclean hands doctrine might act as a bar to your friend's assertion of a case for equitable relief, in this situation I think the friend may be entitled to purely legal rather than equitable cancellation of the deed.

When someone signs a deed, beliving it is something else, the document is void. If a judge or jury can be convinced of the facts as you state them, the case should be a winner.

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Answered on 5/09/08, 7:51 pm


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