QUESTION

Does my abstract have priority?

Asked on Jul 29th, 2015 on Real Estate - California
More details to this question:
Seven months after our abstract judgement was recorded, an inter-spousal transfer was recorded on real estate in the same county. Would our abstract still be a lien on the property?
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1 ANSWER

Real Estate Attorney serving Oakland, CA at Sack Rosendin LLP
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Yes, subsequent transfers do not have any effect on the judgment lien created by recording the abstract of judgment, excepting only a foreclosure sale for a lien which was recorded before yours. That does not prevent the owners from recording all kinds of transfers and new liens, but they all are subject and subordinate to your lien. Your main power is that the owners cannot sell or refinance the property in a transaction where the other side requires title insurance, without paying you off. The title company will insist on getting a release of your lien in order for it to issue the title insurance policy. In theory, you can go through a process to sell the property to enforce the lien. However, there are so many protections for the debtor that it does not work. Still, you could start the process, which includes notifying the debtor's lender, and that might pressure the debtor to make a deal with you. If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business. Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need. Dana Sack
Answered on Jul 29th, 2015 at 12:22 PM

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