Legal Question in Real Estate Law in California
Stipulated Judgment and Judgment
In 1995, I and the plaintiff, as a way of ending the trial, signed a Stipulated Judgment and Judgment that spelled out several items that pertained to both our properties. There were certain things we were required to do in regards to improving a shared easement road, changes to road maintenance and well agreements and restrictions on harassment of each other and guests. The Court on its own motion retained jurisdiction over the matter.
Plaintiff has died and the property has recently closed escrow. We have been told by the new owner's title company that the Stipulated Judgment and Judgment, because it is not a recorded document is now null and void because the plaintiff died. We are stunned. Is this correct?
3 Answers from Attorneys
Re: Stipulated Judgment and Judgment
probably yes, i would have to look a little further into this but normally when dealing with common easments and real property requirments the court order is reqired to be recorded. were you represented by counsel? you may have alternative clims --- additionally you should get copies of the sales documents and the disclosure forms to determine the extent of the knowledge of your new neighbor before you just give up --- there may be altenatives as i said, you can call me at 925-945-6000 to give me more facts
Re: Stipulated Judgment and Judgment
A "bona-fide purchaser for value" who lacks notice of unrecorded agreements (including stipulations for judgment) is ordinarily not subject to them, including unrecorded deeds, if such purchaser records first. You have several possible escape routes:
1) You only say the former owner died and the property has closed escrow. Is the new owner a purchaser or an heir?
2) If a purchaser, did he pay full value?
3) Was the judgment ever entered into the court records? If so, did it show up on the title report? This could be constructive notice.
4) Was the judgment disclosed to the new owner? This could be constructive notice.
5) Is there any condition (signs, gates, etc.) which would place an ordinarily-prudent prospective buyer on notice that there were easements, boundary questions, etc. that should be investigated?
6) What did the real-estate agents know? What should they have known?
Title companies sometimes place undue emphasis on recording, because that's an area where they are strong. They tend to overlook or give short-shrift to other means of giving notice. While I strongly encourage recording everything that's subject to recordation, it isn't the only means by which buyers get notice, and some acquirers of land aren't required to have notice.
Consider the possibility that your attorney may have committed malpractice.
Also, you should not assume that the new owner will necessarily be as difficult to deal with. Perhaps you can arrive at the same settlement, voluntarily.
I also suggest having an attorney look at the retained jurisdiction and the possibility of breathing life into the old case and/or the old stipulation or judgment; e.g., maybe the new owner can be named as a "Doe" defendant.....I think the time limit for this has expired, but an attorney in the county where the properties are located, one who is good at California civil procedure issues, could advise you.
Re: Stipulated Judgment and Judgment
In addition to the options suggested by the other replies, there may be time to make a claim against the "plaintiff's" estate. Call me directly at (619) 222-3504.