1. Supreme Court Considers Changing Balance of Power Between Borrowers and Lenders in an Important Foreclosure Case In the case of Black Sky Capital LLC v. Cobb, S243294, the California Supreme Court is considering the ruling of the 4th District Court of Appeal that held that the owner of both the senior and junior loan on […]

1. New Real Property Disclosure Requirements Existing law provides that transferor must deliver to the respective transferee a real estate disclosure form and the transferee has certain time in which to terminate the deal. Assembly Bill 1289 now says that the specified time [within three days of delivery in person, or five days after delivery by […]

1. There is a Presumption That a Right of First Refusal in a Written Lease Expires When the Initial Leasehold Term Expires, Even Though the Tenant Holds Over on a Month-to-Month Basis. In the case of Smyth v. Berman, the California Court of Appeal has denied Smyth a right of first refusal to purchase the […]

Tree Law Trees with trunks standing entirely on the property of one owner belong exclusively to that owner even though the roots may grow into the adjoining owner’s property. See Civil Code Section 833. This means that the tree and its branches are owned by the person upon whose property the trunk is located even […]

If You Pay Extra Money For A View Is It Protectable? I have received many phone calls over the years from homeowners who want to sue their neighbors or the City or their HOA because they have “lost their view” due to construction on a neighboring lot or the neighbor’s trees have grown like weeds. […]

Reverse Veil Piecing Relief Granted, Creditor May Add LLC As An Additional Judgment Debtor In the case of Curci Investments, LLC vs. James P. Baldwin (two well known Orange County real estate builders and investors). Curci loaned Baldwin, individually, $5.5M. Baldwin failed to make any payments on the Note and Curci sued. After a half […]

California Supreme Court Affirms Appellate Court Ruling That A Real Estate Agent Who Represented The Seller Owes Fiduciary Duties to The Buyer, Not Just Seller, In A Case Where The Brokerage Represented Both Sides of The Deal. In the case of Horiike vs. Coldwell Banker Residential Brokerage Co. 2016 DJDAR 11503, the California Supreme Court […]

Important New Laws Enacted In 2017 Civil Code § 4528 Effective January 1, 2018, Civil Code § 4528 now provides a statutory disclosure form for a homeowners association to complete and give to a seller of a unit, at no cost to the seller, to include copies of relevant association information to a buyer such […]

Sellers Not Liable for Failing to Disclose Deficiencies in Residence Converted Into Wine Tasting Room Where Sellers Lacked Actual Knowledge of Alleged Deficiencies. In the case of RSB Vineyard, LLC vs. Bernard A. Orsi, the issue before the trial court was whether knowledge could be imputed of defects to the defendants based upon presumed knowledge […]

Simultaneously Recorded Trust Deeds Order of Recording Do Not Determine Their Priority. In the case of MTC Fin., Inc. vs. Nationstar Mortage, [2018] 19 Cal App 5th 811. The appellate court determined that the order in which two simultaneously recorded Deeds of Trust are indexed by the recorders office does not determine their priority. The […]

Owner Not Liable To Window Washer For Injuries Sustained In Fall. In the case of Delgadillo vs. Television CTR. Inc., [2018] 20 Cal App. 5th 1078, the Court of Appeal determined that when a property owner hires a licensed, independent contractor for window washing the property owner is not liable for injuries sustained by the […]

Homeowners Association Given Deference By Appellate Court In Establishing and Enforcing Its Own Rules. In the case of Watts vs. Oak Shores Community Association, 235 Cal App 4th 466, the Appellate Court affirmed the Superior Court decision applying judicial deference to the HOA decisions. In this case, a group of property owners (“Owners”) filed a […]

Airbnb Rental Determined as Illegal Use of Property. In the case of Chen vs. Kraft, [2016] 243 Cal App Supp. 13, Chen, the landlord, filed an Unlawful Detainer against Kraft who was using his rental to sublet on Airbnb. The property was zoned R-1 and was subject to Los Angeles Rent Stabilization Ordinance. Los Angeles […]

Long Beach Jury Awards 30.5 Million Dollars In a Foreclosure Abuse Case Against Lender. In the case of Behm vs. Cervenka, Ms. Behm purchased a 7,400 sqft Victorian era home in Los Angeles for $400,000.00 in 2010. After acquiring the home she did extensive remodels and renovations to the property. She sought a loan to […]

It’s Becoming More Dangerous to be a Residential Landlord. In the case of Oliver vs. World Wide Corporate Housing, L.P. (Case#BC516791), a Los Angeles County Superior Court jury has delivered a $3M verdict to a mother of a tenant who died in a furnished apartment rented from the Landlord after a television supplied by the […]

Important New Laws Enacted In 2017 Cannabis Regulation: Business and Professions Code §26000-26231.2 is the California Combined Medical and Recreational Cannabis Laws which are one comprehensive piece of legislation. These laws are effective January 1, 2018. California Adopts New Policy to Encourage Use of Solar Energy Systems Involving HOAs. Existing law, Civil Code §714-714.1, declares […]

Sellers Not Liable for Failing to Disclose Deficiencies in Residence Converted Into Wine Tasting Room Where Sellers Lacked Actual Knowledge of Alleged Deficiencies. In the case of RSB Vineyard, LLC vs. Bernard A. Orsi, the issue before the trial court was whether knowledge could be imputed of defects to the defendants based upon presumed knowledge […]

New Case Expands The Scope of Equitable Easements in California. In the case of Hinrichs v. Melton, 2017 DJDAR 4168 (May 3, 2017). The Court of Appeal fashioned an equitable easement despite no preexisting use of the servient owner’s property. This is the first time a preexisting use of the servient owner’s property has been […]

Pre-dispute Jury Trial Waiver In Loan Documents Is Unenforceable Per CCP 631(f). In the case of Rincon EV Realty vs. CP III Rincon Towers the 1st District Court of Appeal held that a jury trial waiver in the loan documents was unenforceable hence a judgment against the borrower is reversed. The case was remanded for […]

New Real Estate Laws Passed In 2016 Advertising Requirements Using “Team Names”. Business and Professions Code Sections 10159.5 through 10159.7 governs the use of a “team name” and a fictitious business name in real estate sales advertising. Those provisions require a responsible broker’s name to be displayed as prominently and conspicuously as a team name […]

California Supreme Court Affirms Appellate Court Ruling That A Real Estate Agent Who Represented The Seller Owes Fiduciary Duties to The Buyer, Not Just Seller, In A Case Where The Brokerage Represented Both Sides of The Deal. In the case of Horiike vs. Coldwell Banker Residential Brokerage Co. 2016 DJDAR 11503, the California Supreme Court […]

Arbitration Denied When Arbitration Provision Deemed Unconscionable, Both Procedurally and Substantively. In the case of Penilla vs. Westmont Corporation, 2016 DJDAR 9442, the Appellate Court agreed with the Trial Court deeming the arbitration provision in a mobile home lease both procedurally unconscionable as well as substantively unconscionable and therefore denied arbitration. Procedural unconscionability focuses on […]

Owner Who Intentionally Erects Fence and Trims Neighbor’s Trees Without Consent Cannot Use Homeowners Insurance to Protect Him/Her From Liability. In the case of Albert vs. Mid Century Insurance, 236 Cal App 4th 1281, Albert (Owner) bought a homeowners insurance policy from Mid Century.  Albert decides to build an encroaching fence, without first having the […]

Homeowner Not Liable For Injuries to Worker of an Unlicensed Contractor. The law is unsettled as to whether unlicensed contractor’s workers must be deemed employees of the homeowner who hires the unlicensed contractor. Remember the case of an employee who fell from a palm tree in Glendora and was severely injured. That employee was working […]

Premises Liability Expanded For Employees Drinking After Work. In the case of Kai-Yen Cheng vs. OTB Mission Valley Restaurant, et al., the San Diego Superior Court found a San Diego restaurant chain (On The Boarder Mexican Grill and Cantina) liable last Friday for an employees allegedly drunken car collision though both the drinking and the […]