4
Summary of California Law (10th), Security Transactions in Real Property
I. INTRODUCTION
<d2.o n="A. [§1] Types of
Security Transactions.
<d2.o n="B. [§2] Texts and
Practice Works.
<d2.o n="C. [§3] Mortgage.
<d2.o n="D. Deed of Trust.
<d3.o n="1. [§4] Origin and
Validity.
<d3.o n="2. [§5] Mortgage
Compared.
<d3.o n="3. [§6] Effect of
Deed of Trust.
<d3.o n="4. [§7] Strict
Trust Compared and Distinguished.
<d3.o n="5. [§8] Substitution
of Trustee.
<d3.o n="6. [§9] Trustee''s Declaration of Nonmonetary
Status.
<d2.o n="E. Deed Construed as Mortgage.
<d3.o n="1. [§10] Intention
To Create Security Interest.
<d3.o n="2. [§11] Test:
Survival of Obligation.
<d3.o n="3. [§12] Variant
Forms.
<d3.o n="4. [§13] Rights of
Bona Fide Purchaser.
<d2.o n="F. Equitable Mortgage.
<d3.o n="1. [§14] Rule and
Theory.
<d3.o n="2. [§15] Equitable
Mortgage Established.
<d3.o n="3. [§16] Equitable
Mortgage Not Established.
<d3.o n="4. [§17] Effect of
Equitable Mortgage.
<d2.o n="G. Other Equitable Liens.
<d3.o n="1. [§18] In
General.
<d3.o n="2. [§19] Vendor's Lien.
<d3.o n="3. [§20] Construction
Lender''s Lien.
<d3.o n="4. [§21] No
Subcontractor''s Lien
on Loan Fund.
<d3.o n="5. [§22] No
Contractor''s Lien on
Loan Fund.
<d2.o n="H. [§23] Reverse
Mortgage.
<d2.o n="I. Real Property Sales Contract.
<d3.o n="1. [§24] In
General.
<d3.o n="2. [§25] Rights of
Defaulting Purchaser.
<d2.o n="J. Mechanic''s Lien.
<d3.o n="1. [§26] In
General.
<d3.o n="2. [§27] Right to
Lien.
<d3.o n="3. [§28] Amount of
Lien.
<d3.o n="4. [§29] Enforcing
or Protecting Against Lien.
<d3.o n="5. Release of Lien.
<d4.o n="(a) [§30] In
General.
<d4.o n="(b) [§31] Conditional
Waiver of Release.
<d2.o n="K. [§32] Design Professional's Lien.
<d2.o n="L. [§33] Conflict
of Laws.
II. REQUISITES OF MORTGAGE AND DEED OF TRUST
<d2.o n="A. [§34] What
Property Can Be Mortgaged.
<d2.o n="B. Statutory Regulation.
<d3.o n="1. [§35] Institutional
Lenders.
<d3.o n="2. [§36] Federal
Preemption.
<d3.o n="3. [§37] Aspects
Regulated.
<d3.o n="4. [§38] Other
Legislation.
<d2.o n="C. Form, Content, and Terms.
<d3.o n="1. [§39] In
General.
<d3.o n="2. [§40] Mortgage.
<d3.o n="3. [§41] Deed of
Trust.
<d3.o n="4. [§42] Alternative
Mortgage Transactions for Residential Loans.
<d3.o n="5. [§43] Wrap-Around
Mortgage.
<d3.o n="6. [§44] “Dragnet” and Future Advances
Clauses.
<d2.o n="D. [§45] Construction
of Note and Security Instrument.
<d2.o n="E. [§46] Recordation.
<d2.o n="F. [§47] Lien Is
Incident of Debt.
III. PRIORITIES
<d2.o n="A. In General.
<d3.o n="1. [§48] Priority
in Time.
<d3.o n="2. [§49] Effect of
Recordation.
<d3.o n="3. [§50] Effect of
Notice.
<d2.o n="B. Subordination Agreements.
<d3.o n="1. [§51] In
General.
<d3.o n="2. [§52] Types of
Agreements.
<d3.o n="3. [§53] Circuity
of Liens.
<d3.o n="4. [§54] Notice
Requirements.
<d3.o n="5. Enforcement of Executory Agreement.
<d4.o n="(a) [§55] Reasonableness
of Agreement.
<d4.o n="(b) [§56] Waiver of
Invalid Clause.
<d3.o n="6. [§57] Compliance
With Terms of Agreement.
<d3.o n="7. [§58] Subordination
by Prior Recordation.
<d2.o n="C. Real Mortgage and Tax Lien.
<d3.o n="1. [§59] Priority
of Tax Lien Over Mortgage.
<d3.o n="2. Priorities Between Tax Liens.
<d4.o n="(a) [§60] Statutory
Parity.
<d4.o n="(b) [§61] Priority
of Tax Title.
<d4.o n="(c) [§62] Statute of
Limitations.
<d3.o n="3. Federal Tax Lien.
<d4.o n="(a) [§63] In
General.
<d4.o n="(b) [§64] Priority.
<d4.o n="(c) [§65] Uniform
Federal Lien Registration Act.
<d2.o n="D. Real Mortgage and Secured Interest in Personal
Property.
<d3.o n="1. [§66] Growing
Crops.
<d3.o n="2. Fixtures.
<d4.o n="(a) [§67] Subsequent
Mortgage.
<d4.o n="(b) [§68] Prior
Mortgage.
<d2.o n="E. Real Mortgage and Mechanic's Lien.
<d3.o n="1. [§69] Basic
Rule.
<d3.o n="2. [§70] Commencement
of Work.
<d2.o n="F. [§71] Real
Mortgage and Design Professional's
Lien.
<d2.o n="G. Future Advances and Subsequent Liens.
<d3.o n="1. [§72] Obligatory
Advances.
<d3.o n="2. [§73] Optional
Advances.
<d2.o n="H. Purchase Money Mortgage.
<d3.o n="1. [§74] In
General.
<d3.o n="2. [§75] Priority
Over Vendor's Lien.
IV. RIGHTS AND OBLIGATIONS OF MORTGAGEE
<d2.o n="A. Reimbursement for Expenditures.
<d3.o n="1. Payment of Taxes.
<d4.o n="(a) [§76] In
General.
<d4.o n="(b) [§77] Action
Against Mortgagor.
<d3.o n="2. [§78] Clearing
Liens.
<d3.o n="3. [§79] Payment of
Insurance Premiums.
<d3.o n="4. [§80] Impound
Accounts.
<d2.o n="B. [§81] Right to
Condemnation Award.
<d2.o n="C. Right to Insurance Proceeds.
<d3.o n="1. [§82] Standard
Provisions.
<d3.o n="2. [§83] Lender
Named as Loss Payee.
<d3.o n="3. [§84] Security
Need Not Be Impaired.
<d2.o n="D. Remedies for Impairment of Security.
<d3.o n="1. [§85] Against
Mortgagor.
<d3.o n="2. [§86] Against
Third Person.
<d2.o n="E. Acceleration on Sale or Encumbrance.
<d3.o n="1. [§87] In
General.
<d3.o n="2. “Due on Sale” Clause.
<d4.o n="(a) [§88] In
General.
<d4.o n="(b) [§89] Validity
of Clause: California Cases.
<d4.o n="(c) [§90] Federal
Preemption.
<d3.o n="3. [§91] “Due on Encumbrance” Clause.
<d2.o n="F. Prepayment Charges.
<d3.o n="1. [§92] Nature and
Effect.
<d3.o n="2. [§93] Amount of
Penalty.
<d3.o n="3. [§94] Restrictive
Legislation.
<d2.o n="G. Right to Possession, Rents, and Profits.
<d3.o n="1. In Absence of Express Agreement.
<d4.o n="(a) [§95] In
General.
<d4.o n="(b) [§96] Rent
Skimming.
<d3.o n="2. Under Rents and Profits Agreement.
<d4.o n="(a) Former Law: Distinction Between Absolute
Assignment and Pledge as Additional Security.
<d5.o n="(1) [§97] In
General.
<d5.o n="(2) [§98] Absolute
Assignment.
<d5.o n="(3) [§99] Assignment
as Additional Security.
<d4.o n="(b) [§100] Distinction
Abolished.
<d4.o n="(c) [§101] Receiver.
<d3.o n="3. Mortgagee in Possession.
<d4.o n="(a) [§102] Duties of
Mortgagee in Possession.
<d4.o n="(b) [§103] Rights of
Mortgagee in Possession.
<d4.o n="(c) [§104] Possession
After Statute of Limitations Runs.
V. TRANSFER OF MORTGAGE OR PROPERTY
<d2.o n="A. Transfer of Debt and Mortgage.
<d3.o n="1. [§105] Assignment
of Debt.
<d3.o n="2. [§106] Assignment
of Mortgage.
<d2.o n="B. Transfer of Property and Assumption of Mortgage.
<d3.o n="1. [§107] In
General.
<d3.o n="2. [§108] Manner
and Requisites of Assumption.
<d3.o n="3. Mortgagor as Surety.
<d4.o n="(a) [§109] Release
of Part of Property.
<d4.o n="(b) [§110] Extension
of Time to Grantee.
<d4.o n="(c) [§111] Suretyship
Right of Subrogation.
<d3.o n="4. [§112] Failure
of First Grantee To Assume.
VI. EXTENSION, RENEWAL, AND DISCHARGE OF MORTGAGE
AND DEED OF TRUST
<d2.o n="A. Extension or Renewal.
<d3.o n="1. [§113] As
Between Parties.
<d3.o n="2. [§114] Effect on
Encumbrancers Before Renewal.
<d3.o n="3. [§115] Effect on
Encumbrancers or Purchasers After Renewal.
<d2.o n="B. Discharge.
<d3.o n="1. [§116] In
General.
<d3.o n="2. Payment and Satisfaction of Record.
<d4.o n="(a) [§117] In
General.
<d4.o n="(b) [§118] Mortgagee's Duty.
<d4.o n="(c) [§119] Release
When Mortgagee Cannot Be Found or Refuses To Act.
<d3.o n="3. [§120] Merger.
<d3.o n="4. Running of Statute of Limitations on Principal
Debt.
<d4.o n="(a) [§121] Mortgage.
<d4.o n="(b) [§122] Deed of
Trust.
<d2.o n="C. [§123] Revival
of Discharged Mortgage.
VII. REMEDIES OF MORTGAGEE AND TRUSTEE
<d2.o n="A. One-Action Rule.
<d3.o n="1. [§124] In
General: C.C.P. 726.
<d3.o n="2. Where Rule Does Not Apply.
<d4.o n="(a) [§125] Security
Is Not Mortgage.
<d4.o n="(b) [§126] Action Is
Not To Recover Debt.
<d4.o n="(c) [§127] Action Is
Not Against Mortgagor.
<d4.o n="(d) [§128] Remedy Is
Not Action.
<d4.o n="(e) [§129] Property
or Mortgagor Is Outside State.
<d4.o n="(f) [§130] Security
Is Valueless.
<d3.o n="3. [§131] Advance
Waiver Is Invalid.
<d3.o n="4. Affirmative Defense and Election of Remedy.
<d4.o n="(a) [§132] In
General.
<d4.o n="(b) [§133] Effect of
Setoff.
<d4.o n="(c) [§134] Distinction:
No Waiver of Underlying Debt.
<d4.o n="(d) [§135] Action
Against Comaker.
<d4.o n="(e) [§136] Mixed
Collateral: Real and Personal Property.
<d3.o n="5. Dual Remedies for Deed of Trust.
<d4.o n="(a) [§137] In
General.
<d4.o n="(b) [§138] Change of
Remedies.
<d2.o n="B. Enforcement Procedure.
<d3.o n="1. Judicial Foreclosure.
<d4.o n="(a) Parties.
<d5.o n="(1) [§139] Who
Should Be Joined.
<d5.o n="(2) [§140] Who
Should Not Be Joined.
<d5.o n="(3) [§141] Failure
To Join Parties.
<d4.o n="(b) [§142] Pleading
and Decree.
<d4.o n="(c) [§143] Manner of
Sale.
<d3.o n="2. Nonjudicial Foreclosure.
<d4.o n="(a) [§144] In
General.
<d4.o n="(b) Notices.
<d5.o n="(1) Notice of Default and Election To Sell.
<d6.o n="(aa) [§145] In
General.
<d6.o n="(bb) [§146] Statement
of Breach.
<d6.o n="(cc) [§147] Warning
and Notice of Borrower's
Rights.
<d5.o n="(2) [§148] Special
Notice for Unruh Act Mortgages.
<d5.o n="(3) [§149] Notice to
Junior Lienor of Uncured Default.
<d5.o n="(4) Notice of Time and Place of Sale.
<d6.o n="(aa) [§150] Content and
Time of Notice.
<d6.o n="(bb) [§151] Posting,
Publication, and Recording.
<d6.o n="(cc) [§152] Effect of
Noncompliance.
<d5.o n="(5) [§153] Personal
Notice on Request.
<d5.o n="(6) [§154] Personal
Notice to Others.
<d4.o n="(c) Conduct of Sale.
<d5.o n="(1) [§155] In
General.
<d5.o n="(2) Postponement.
<d6.o n="(aa) [§156] In
General.
<d6.o n="(bb) [§157] Announcements
and Notices.
<d5.o n="(3) [§158] Multiple
Parcels.
<d5.o n="(4) [§159] Terms of
Sale and Creditors''
Offsets.
<d5.o n="(5) [§160] Bidding
and Payment.
<d5.o n="(6) [§161] Costs and
Fees.
<d4.o n="(d) Distribution of Proceeds.
<d5.o n="(1) [§162] Order of
Priority.
<d5.o n="(2) [§163]
Conflicting Claims.
<d4.o n="(e) [§164] Effect of
Recitals in Trustee's
Deed.
<d4.o n="(f) Setting Aside Sale for Irregularity.
<d5.o n="(1) [§165] Grounds.
<d5.o n="(2) [§166] Tender of
Payment.
<d4.o n="(g) [§167] Notice of
Rescission.
<d4.o n="(h) [§168] Damages
for Wrongful Sale.
<d3.o n="3. [§169] Passage
of Title.
<d3.o n="4. [§170] Possession,
Rents, and Profits.
<d3.o n="5. Unlawful Detainer.
<d4.o n="(a) [§171] In
General.
<d4.o n="(b) Litigation of Title Issue.
<d5.o n="(1) [§172] Validity
of Sale.
<d5.o n="(2) [§173] Fraud in
Acquisition of Title.
<d5.o n="(3) [§174] Effect of
Judgment.
<d3.o n="6. Effect of Purchase by Beneficiary.
<d4.o n="(a) [§175] In
General.
<d4.o n="(b) [§176] Negligence
Claims.
<d4.o n="(c) [§177] Claims
Against Third Parties.
<d2.o n="C. Deficiency Judgment.
<d3.o n="1. Foreclosure of Ordinary Mortgage.
<d4.o n="(a) [§178] Right to
Deficiency Judgment.
<d4.o n="(b) Limitation on Amount.
<d5.o n="(1) [§179] Nature
and Scope of Statutes.
<d5.o n="(2) [§180] Determining
Fair Value.
<d5.o n="(3) [§181] Sold-Out
Junior Lienor.
<d3.o n="2. Foreclosure of Purchase Money Mortgage: C.C.P.
580b.
<d4.o n="(a) Deficiency Judgment Prohibited.
<d5.o n="(1) [§182] Nature
and Purpose of Statute.
<d5.o n="(2) [§183] Waiver of
Protection.
<d5.o n="(3) [§184] Distinctions.
<d4.o n="(b) Scope of Statute.
<d5.o n="(1) [§185] Standard
Transactions.
<d5.o n="(2) [§186] Variations
on Standard Transaction.
<d5.o n="(3) [§187] Transactions
in Nature of Deficiency Judgment.
<d5.o n="(4) [§188] Contract
of Sale.
<d5.o n="(5) [§189] What Are
Not Purchase Money Mortgages.
<d5.o n="(6) [§190] Third-Party
Lenders.
<d5.o n="(7) [§191] Construction
Loan on Owned Land.
<d4.o n="(c) Action by Sold-Out Junior Lienor.
<d5.o n="(1) [§192] In
General.
<d5.o n="(2) [§193] Exception
for Subordinated Junior Lien.
<d4.o n="(d) Action on Guaranty.
<d5.o n="(1) [§194] True
Guaranty.
<d5.o n="(2) [§195] Purported
Guaranty.
<d4.o n="(e) [§196] Action on
Indorsement.
<d4.o n="(f) Action for Impairment of Security.
<d5.o n="(1) [§197] In
General.
<d5.o n="(2) [§198] Bad Faith
Waste.
<d3.o n="3. Nonjudicial Sale: C.C.P. 580d.
<d4.o n="(a) Deficiency Prohibited.
<d5.o n="(1) [§199] In
General.
<d5.o n="(2) [§200] Where
Additional Security Is Given.
<d5.o n="(3) [§201] Where
Part of Note Unsecured.
<d4.o n="(b) Action Against Guarantor.
<d5.o n="(1) [§202] In
General.
<d5.o n="(2) [§203] Where
Purported Guarantor Is Principal.
<d5.o n="(3) [§204] Waiver of
Defenses.
<d4.o n="(c) [§205] Action by
Sold-Out Junior Lienor.
<d4.o n="(d) [§206] Defense
of Action To Enjoin Sale.
<d3.o n="4. [§207] Constitutionality
of Restrictions.
<d2.o n="D. Environmentally Impaired Property.
<d3.o n="1. [§208] Nature
and Scope of Legislation.
<d3.o n="2. [§209] Inspection
of Property.
<d3.o n="3. [§210] Waiver of
Lien.
<d3.o n="4. [§211] Breach of
Environmental Provision.
VIII. SPECIAL RIGHTS OF MORTGAGOR AND SUBORDINATE
LIENORS
<d2.o n="A. [§212] In
General.
<d2.o n="B. [§213] Equity of
Redemption.
<d2.o n="C. Accountings and Notices by Mortgagee.
<d3.o n="1. [§214] In
General.
<d3.o n="2. [§215] Erroneous
Payoff Statement.
<d2.o n="D. Reinstatement of Loan After Default.
<d3.o n="1. [§216] In
General.
<d3.o n="2. [§217] Time
Limits.
<d3.o n="3. [§218] Costs and
Attorneys' Fees.
<d3.o n="4. [§219] Payment
or Tender.
<d2.o n="E. Equitable Relief Against Forfeiture.
<d3.o n="1. [§220] In
General.
<d3.o n="2. [§221] Effect of
Minor Defaults.
<d2.o n="F. Protection Against Unfair Home Equity Purchase.
<d3.o n="1. [§222] Nature
and Purpose of Legislation.
<d3.o n="2. [§223] Definitions.
<d3.o n="3. [§224] Rights of
Seller and Obligations of Purchaser.
<d3.o n="4. [§225] Purchaser''s Representative.
<d3.o n="5. [§226] Penalties
and Seller''s
Remedies.
<d2.o n="G. Mortgage Foreclosure Consultants.
<d3.o n="1. [§227] Nature
and Purpose of Legislation.
<d3.o n="2. [§228] Foreclosure
Consultant.
<d3.o n="3. [§229] Rights of
Owner and Obligations of Consultant.
<d3.o n="4. [§230] Consultant's Representative.
<d3.o n="5. [§231] Penalties
and Owner's Remedies.
<d2.o n="H. Statutory Right of Redemption.
<d3.o n="1. [§232] Former
Law.
<d3.o n="2. [§233] Scope and
Manner of Exercise.
<d3.o n="3. [§234] Pro Tanto
Redemption.
<d3.o n="4. [§235] Foreclosure
Decree Denying Redemption.
I. [§236]
Waiver or Sale of Right
of Redemption.