Legal Question in Real Estate Law in California

Re: realty lien holder?

I am not quite sure your question. Do you want your fiance to have a lien on your property, or do you want to have her added as a Trustor?

Please call our office for a free telephone consultation.

Thank you,

949-852-2900 ext 27

Re: realty lien holder?

Okay, first you say 'we just bought....' I assume escrow has not yet closed and that financing is still pending. If you have already obtained financing, closed escrow and recorded the deed and the financing instruments, your question makes less sense because you would be unscrambling the egg, at least in part.

Next, you say 'divorced' from current obligations. Are you using the term 'divorced' loosely, or is your fiancee still married to someone else? There are substantial pitfalls in doing real-property deals with folks who are married to others, even though a divorce is pending. Just thought I'd let you know.

One becomes a 'lienholder' by making a loan and taking and holding a security interest in property, such as a mortgage or trust deed, to collateralize the repayment obligation of the borrower. As buyers, you and your fiancee fall more naturally in the category of lien givers rather than lien holders. If, however, your fiancee is actually putting up a substantial amount of the purchase price, it perhaps could come in as a loan rather than as equity.

Thus, it is conceptually possible to do what you propose, however it seems convoluted and may be pointless.

If you would like to call me for a free initial consultation, I could perhaps find an easier way to accomplish what you have in mind. (707) 523-4497.

Re: realty lien holder?

Be very careful here. If you are trying to create a lien just to protect your property from your friend's creditors without a legitimate underlying transaction, then it might be a fraud and could get you into much deeper trouble than merely owing creditors. Consult with an attorney before you do anything.