An investor in California holds title to a commercial property through an LLC. The investor wants to sell the property. The buyer's title company issues a preliminary title report. In reviewing the report, the buyer notices that a deed of trust from a prior owner was never formally reconveyed after the underlying loan was paid off. What document must be obtained to clear this title issue?
Correct Answer
C) A full reconveyance deed from the trustee of the paid-off deed of trust
In California, when a loan secured by a deed of trust is paid in full, the beneficiary (lender) must instruct the trustee to issue a full reconveyance deed to the trustor (borrower). Under California Civil Code §2941, the beneficiary must deliver the reconveyance documents within 30 days of full payment. The full reconveyance removes the deed of trust from the title.
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Previous Question
A California deed contains the language: 'I, John Smith, hereby grant to Mary Johnson the following described real property...' This granting clause uses the word 'grant.' Under California Civil Code, what is the legal effect of using the word 'grant' in a deed?
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Elena is purchasing a home in Long Beach, California. During the title search, the title company discovers that a previous owner died intestate (without a will) 10 years ago, and the property was transferred through a probate court proceeding. The heir who received the property then sold it to the current seller via grant deed. Elena is concerned about the strength of her title. Her agent should advise her that: