Financing Parcels

[SueDonim]

Apologies in advance. This is from someone who must remain undisclosed, hence the subterfuge and pseudonym. I have a situation about which I need to ask for opinions.

Due to certain project requirements, it is being broken up into two parts. The two parts do not correspond to current parcel lines. I have been asked to prepare a legal description for one of the “project parcels” to be used for financing purposes. The description will be the one used on the Trust Deed.

Something about this doesn’t sit properly with me. Does this seem OK with you guys?

If you think it’s ok, please tell me why and provide some references.

If you think it’s not ok, please tell me why and provide some references.

Sorry about the “cloak and dagger” stuff… Thanks all the same, though

Sue

[pls7809]

This sounds like a subdivision to me. I'm not an expert in this area, so the contrary may be shown. I think it may depend on the land use as to whether the SMA is applicable or not. Maybe other factors too.

[William Magee]

If a loan is foreclosed on and the trust deed legal description is different than the parcel's true legal description, the result would be a mess. Hence the SMA prohibition. See the definition of subdivision - CA Govt Code Section 66424.

[SueDonim]

Thank you!

Mr. Magee...do you have any references to any appellate decisions regarding cases where the trust deed description and the parcel description were different?

Can anyone else chime in on this, please?

Enjoy the long weekend and, in the words of my first Chief of Parties, "Stay safe out there. There are crazy people on the roads!"

Sue

[Peter Ehlert]

good topic Sue, thanks

Mr. Magee brought up an associated old issue. What happens when a local agency processes and approves a LLA, then it is consummated with grant deeds. What happens when underlying mortgages are neglected?

... I am Not advocating further regulation, but we as professionals need to inform our clients of the consequences. (and Local Agencies need to become a bit more sophisticated too)

but, maybe legislation in the last 10 years covered that hole, dunno

[Proud7191]

We as surveyors can only control what we can control. There are so many uncontrollable variables in land title that we as surveyors have no control over but have to deal with in the end. Maybe more regulation or reformation is needed? Jp

[William Magee]

Thank you!

Mr. Magee...do you have any references to any appellate decisions regarding cases where the trust deed description and the parcel description were different?

Can anyone else chime in on this, please?

Enjoy the long weekend and, in the words of my first Chief of Parties, "Stay safe out there. There are crazy people on the roads!"

Sue

Sue,
I could spend countless hours coming up with cases of defective title. However, on short notice shooting cold from the hip, take a look at Hellweg v. Cassidy. It is somewhat on line with the issue you're looking at.
The case can be found here: http://www.lexisnexis.com/clients/CACourts/

[Anthony Maffia]

I'd direct the question to the title officer involved in the transaction, as he/she will have additional information. There are exceptions out there for leaseholds, and title officers have the training and expertise regarding lien / taxation / foreclosure rules.