Deeds of Trust in California are Practically and Substantially only Mortgages with a Power of Sale

Deeds of Trust in California are Practically and Substantially only Mortgages with a Power of Sale

By Daniel Edstrom
DTC Systems, Inc.

Thanks to Simonee for this one – Monterey SP Partnership v. WL Bangham, Inc., 777 P. 2d 623 – Cal: Supreme Court 1989

The California Supreme Court states:

As we explained in describing “the anomalous nature of deeds of trust in this state” (Bank of Italy etc. Assn. v. Bentley (1933) 217 Cal. 644, 657 [20 P.2d 940]), “deeds of trust, except for the passage of title for the purpose of the trust, are practically and substantially only mortgages with a power of sale….” (Ibid.) In practical effect, if not in legal parlance, a deed of trust is a lien on the property.

And a few other tidbits:

“Just as a panda is not a true bear, a trustee of a deed of trust is not a true trustee.” (Stephens, Partain & Cunningham v. Hollis (1987) 196 Cal. App.3d 948, 955 [242 Cal. Rptr. 251].)

Download opinion here: http://dtc-systems.net/wp-content/uploads/2012/01/Monterey_SP_Partnership_vs_WL_Bangham.pdf

Author: dmedstrom

Reverse Engineering and Failure Analysis - Reverse Engineering Wall Street

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