CA Real Estate Law Chapter 11

Judgement Lien

- a final order of the court
- a court's declaration that money is owed doesn't in itself create a judgement lien - but recording a certificate abstract of the court's judgement with the county recorder creates a GENERAL LIEN on all the debtor's nonexempt

Termination of Judgement Liens

- expiration of 10 years
- discharge of the debt in bankruptcy
- payment and satisfaction
When a debtor has no property - the lien's only value would be against possible future acquisitions

WRIT OF EXECUTION

- a judgement creditor - after locating and id'ing property of the debtor - can obtain a writ from the court directing the sheriff to seize and sell the debtor's property to satisfy the judgement
- this ___ is a separate lien on the debtor's property for

Notice of Execution Sale

- must be given by...
- posting a notice of the sale on the prop for 20 days prior to the sale
- publishing notice of the sale once per week for 20 days in a newspaper of general circulation w/in the county where the prop is located
- mailing notice to an

Execution Sale

- sale must be made at public auction by sheriff's sale in the county where the property is located
- purchaser receives a certificate of sale

Redemption Rights

- debtor is allowed to redeem the property form an execution sale within 12 months of the sale - 3 months if the indebtedness was paid in full by the sale proceeds
- debtor can assign their redemption rights to a third party
- debtor must pay sales price

Attachment

- a process by which real or personal property of a defendant in a lawsuit is seized and kept in the custody of the law to satisfy a judgement that the plaintiff hopes to obtain
- its a prejudgment seizure while a case is pending that ensures the availabi

Homeowner's Assoc. Liens

- HOA can file liens for unpaid assessments that exceed $1800 and have been delinquent for over 1 year - can be foreclosed
- foreclosure is subject to a 90 day right of redemption

Real Property Taxes and Assessments

- property taxes are AD VALOREM TAXES - based on property value
- Proposition 13 - assessed value of RE shall be based on the 1975 tax rolls - prop is reassessed upon a purchase by a new owner or other changes of ownership (except spouse/children by sale

Real Property Taxes

- determined on or before Sept 1
- 1/2 is due on Nov 1st and delinquent at 5pm on Dec 10
- 1/2 due on Feb 1 and delinquent at 5pm on April 10

Fed and State Tax Liens

- liens for federal income tax are general liens and arise when the taxpayer refuses to pay a tax assessment
- the lien must be recorded
- liens for state taxes are general liens on all property within the state - recording is required to establish priori

Mechanics' Liens

- statutory liens - provided on the basis of equity
- improvers of property should have a charge against the property for the value of their improvements - or owners could receive undeserved enrichment
- mecanic's liens can not be filed against work contr

Notice of Nonresponsibility

- a mechanic's lien can arise if a property owner discovers unauthorized work being done on their property and fails to give notice that they will not be responsible for the work
- w/in 10 days of obtaining knowledge of an actual commencement or work - th

Preliminary Notice

- to prevent secret liens or lien claimants - a preliminary notice must be given prior to the recording of a mechanic's lien
- a prelim notice should be filed by the mechanic saying that the work is subject to lien rights within 20 days of starting work -

Period to File a Lien

- a recorded notice filed by an owner that work has been completed - NOTICE OF COMPLETION - sets the exact time of completion
- COMPLETION can also be either occupation by the owner or the owner's agent coupled with cessation of labor or acceptance of the

CESSATION OF WORK

- if work is stopped and no notice of cessation is filed -- lien claimants have 90 days from cessation of work to file their liens
- cessation -- 60 continuous days without any work being conducted
- notice of cessation filed -- all contractors other than

Recording of Mechanics' Lien

- liens must be verified to be recorded
- VERIFICATION is provided by the mechanic who either makes an oath or affirmation to declare that the statement is true
- lien must include: work of the claimant, property description, who hired the claimant, name

Enforcing Mechanics' Liens

- enforced through a foreclosure action brought by the lienholder
- not satisfied -- prop will be sold - redemption rights similar to mortgage foreclosure

PRIORITY OF MECHANICS' LIENS

- have equal priority and relate as a whole back to the date on which work commenced on the project
- starting time should be apparant by anyone who checks on the property - easily seen by everyone
- have priority over other liens attached subsequent to t

Termination of Mechanics' Lien

- are lost if not action is taken to enforce them within 90 days of filing - doesn't take away debt - but only the lien
- could be wiped out by a priority lien foreclosing
- full payment can release the lien
- voluntary release of a lien terminates the li

Stop Notice

- is a lien on the balance of the funds the lender is holding
- priority over lender's using the funds remaining for completion
- receipt of a stop notice -- lender must withhold monies due or to become due in the amt of the claim

Lis Pendens

- notice of a pending lawsuit involving rights concerning real property
- when its recorded it is notice to anyone to examine the proceedings bc title is in litigation
- can be expunged if a court finds that the claimant has not established the probable v

Declaration of Homestead

- purpose of HOMESTEAD - provide a home free from the fear it will be lost to creditors
- DECL. OF HOMESTEAD - may be recorded by an owner to protect homestead prop from execution by a subsequent judgement creditors
- doesn't protect from voluntary liens