Legal Question in Real Estate Law in California

Re: real property invalid lein

Normally, when a note secured by a deed of trust is paid off, the lender must deliver the original note and trust deed to the trustee and request full reconveyance by the trustee, who will reconvey the title held in trust and record notice thereof within 21 days. See Civil Code section 2941.

If this didn't happen, the circumstances should be investigated first before suit is filed. There are two ways notes/trust deeds get paid off; either by making all the payments or through a refinancing. If yours was the former case, the focus of attention should be on the party to whom you made the last payment (but this party might not be the true note-holder). If you paid off by refinancing, the escrow holder who handled the refi should be questioned in detail. The party named as trustee should be questioned as well, but trustees under deeds of trust are not true trustees and may know zip about the situation.

If you are eventually unable to locate the party holding the now paid-off note, you will need to file a court action naming the lender(s), note holders, "all persons unknown claiming an interest," and several John Doe defendants. The action could be in the form of an action to cancel instruments (the note and D/T) and/or a more general quiet-title suit; the former might be simpler, but the decision and the filing itself should be undertaken by an experienced real-estate attorney in your county.

If the suit is unopposed, as is likely, it should not be too expensive. You will have some costs for investigation and proving your position, but you should be spared the costs (and delay) of formal discovery and trial.

Re: real property invalid lein

A lawsuit must be filed to quiet title. If you contact our office for an appointment, we can explain the process and the steps.

Re: real property invalid lein

Usually this is not a difficult process. You need to record what is called a Deed of Reconveyance. On the back of the deed of trust which you signed is a printed form which is the deed of reconveyance. That has to be dated and signed and completed by V. creditor and had his signature notarized. Then you take that form and recorded in the county in which the property is located at the recorder's office. Make sure you get a copy of that recorded document immediately and it will be mailed to you by the counter recorder once it is completed. You would do that on any debts that has been paid off applicable to the real property where a deed of trust has been taken as security on the promissory note. The biggest problem is if this "second" is from a private party who has either moved away, died or otherwise other actions must be taken. If you have any further questions please contact me if you so desire at 925 -- 945 -- 6000.