Legal Question in Real Estate Law in California

Re: undiclosed disclosure disclosed

Your terminology in describing the situation is a bit imprecise, so I'm making some guesses as to exactly what happened.

I assume by "undisclosed" that you mean the seller failed to disclose it, but it turned up in the public record when you initiated a (re)financing process, e.g. the prospective lender ordered a preliminary title report that showed it.

I further assume that "trust on it" means that a trust has some kind of interest in the property, senior to yours, that affects your title.

An average property owner (one without substantial personal experience in real estate investing and finance) should start addressing this kind of problem by retaining a local real-estate attorney to review your purchase documents, the way escrow was handled, the seller's representations, and what a prior title report showed.

After that, and depending to some extent upon what the lawyer's initial review showed, the inquiry would focus first upon the title insurance. You may have a valid claim against your insurance. If so, the insurer may provide you with legal assistance or assume the legal roles (costs, too) on your behalf.

Next area of inquiry would be whether the real-estate brokers involved in your purchase were negligent Both your broker and the seller's broker owed you certain disclosure duties. Generally, these duties have to do with the physical condition of the property, not the quality of title, but it is not always or entirely so.

Then, of course, of major importance is whether the interest of this trust in the property is valid and defensible, or exists only through a slip-up in documentation sometime in the past. I haven't a clue based on the information given.

Ultimately, if research and negotiations won't resolve the problem, you may have to initiate a court action (lawsuit) to "remove cloud on title" or to "quiet title" in your name.

Re: undiclosed disclosure disclosed

in a nutshell, from the facts given, it could all come down to whether or not you can be charged with having constructive or inquirey notice of this trust (lien/other interest) in this property. if not, then you may have strong rights to quieting title in your name or alternatively suing for negligence. if you would like further assistance in this legal matter, feel free to email me directly with more information and how you might like to proceed here.

Re: undiclosed disclosure disclosed

Have you incurred any damages and was there a title report? Please contact our office for consultation and review of your documentation.

Re: undiclosed disclosure disclosed

It depends; did you buy it at a trustee's sale(foreclosure)? If so, no. If you bought from a seller who represented that there were no other liens and/or if you obtained a title policy insuring there were no other liens, then yes.

Re: undiclosed disclosure disclosed

It sounds like the seller failed to disclose to you, the buyer, that there is another entity (the trust) that has an interest in the property. This is a cloud on your title and would be actionable against the seller and your title insurance carrier. You should hire an attorney for this case. We would be happy to help. Thanks for the inquiry.