You have no items in your shopping cart.
Search
Filters

Practice Under the California Environmental Quality Act

Authors Stephen Kostka and Michael Zischke cover CEQA practice from all possible perspectives and provide you with invaluable practice tips and expert legal analysis. This definitive guide is the CEQA book most often cited by the California Supreme Court.

Authors Stephen Kostka and Michael Zischke cover CEQA practice from all possible perspectives and provide you with invaluable practice tips and expert legal analysis. This definitive guide is the CEQA book most often cited by the California Supreme Court.

  • Climate change and greenhouse gas emission analysis
  • CEQA coverage and exemptions
  • EIR versus Negative Declaration
  • Public review and scoping process
  • Content and adequacy requirements for EIRs
  • Project approval
  • Mitigation measures and monitoring programs
  • Interplay between CEQA and other statutes
  • Joint federal/state environmental documents
  • CEQA litigation and judicial review
OnLAW RE94780

Web access for one user.

 

If you are signed in and a new attorney, your adjusted cost appears below.

$ 445.00
Print RE33780

2d edition, 2 looseleaf volumes, updated 3/18

 

If you are signed in and a new attorney, your adjusted cost appears below.

$ 445.00
Add OnLAW to print RE94780(40)
$ 99.00

Authors Stephen Kostka and Michael Zischke cover CEQA practice from all possible perspectives and provide you with invaluable practice tips and expert legal analysis. This definitive guide is the CEQA book most often cited by the California Supreme Court.

  • Climate change and greenhouse gas emission analysis
  • CEQA coverage and exemptions
  • EIR versus Negative Declaration
  • Public review and scoping process
  • Content and adequacy requirements for EIRs
  • Project approval
  • Mitigation measures and monitoring programs
  • Interplay between CEQA and other statutes
  • Joint federal/state environmental documents
  • CEQA litigation and judicial review

1

Lawyer’s Role in Real Property Sales

Theani C. Louskos

  • I.  INTRODUCTION  1.1
  • II.  OVERVIEW OF ATTORNEY’S ROLE
    • A.  Services Typically Provided by Attorney  1.2
    • B.  Checklist: Attorney’s Services  1.2A
    • C.  Professional Responsibility  1.3
      • 1.  Rules of Professional Conduct  1.4
        • a.  General Standard of Performance  1.5
        • b.  Conflicts and Financial Relationships  1.6
          • (1)  Conflict With Attorney’s Own Interest  1.7
          • (2)  Conflict With Other Interests  1.8
            • (a)  Written Disclosure  1.9
            • (b)  Informed Written Consent  1.10
            • (c)  Risks of Multiple Representation  1.11
          • (3)  Handling Client’s Property  1.12
        • c.  Professional Liability Insurance  1.12A
      • 2.  Malpractice Law  1.13
        • a.  Duty of Care  1.14
        • b.  Fiduciary Duty  1.15
      • 3.  Resource Materials on Malpractice  1.16
    • D.  Defining the Engagement
      • 1.  Clearly Communicating Scope and Content of Engagement  1.17
      • 2.  Piecemeal Involvement  1.18
    • E.  Defining the Fee
      • 1.  The Fee Agreement  1.19
      • 2.  Amount of Fee  1.20
      • 3.  Equity Interests  1.21
  • III.  IDENTIFYING CLIENT’S NEEDS AND OBJECTIVES
    • A.  Needs and Objectives as Important Guideposts  1.22
    • B.  Areas to be Explored With Client
      • 1.  Client’s Purpose in Selling or Buying the Property  1.23
        • a.  Seller’s Objectives  1.24
        • b.  Purchaser’s Objectives  1.25
      • 2.  Alternatives to Sale  1.26
        • a.  Seller’s Alternatives
          • (1)  Leasing Transaction  1.27
          • (2)  Other Sources of Liquidity  1.28
            • (a)  Debt Sources  1.29
            • (b)  Equity Sources  1.30
          • (3)  Development of the Property in Furtherance of Sale  1.31
          • (4)  Other Sources of Relief  1.32
        • b.  Purchaser’s Alternatives  1.33
          • (1)  Leasing Transaction  1.34
          • (2)  Other Equity Transactions  1.35
        • c.  The “Go/No-Go” Alternative  1.36
      • 3.  Client’s Timing Needs  1.37
        • a.  Ascertaining Client’s Needs  1.38
        • b.  Degree and Causes of Any Timing Requirements  1.39
          • (1)  Seller Timing Requirements  1.40
          • (2)  Purchaser Timing Requirements  1.41
      • 4.  Net Proceeds Requirements  1.42
        • a.  The Bottom Line  1.43
        • b.  Distinguishing Between Wants and Needs  1.44
          • (1)  Wants  1.45
          • (2)  Needs  1.46
      • 5.  Client’s Risk Tolerance: Presale Contingencies  1.47
        • a.  Seller’s Presale Risk Tolerance  1.48
        • b.  Purchaser’s Presale Risk Tolerance  1.49
      • 6.  Client’s Risk Tolerance: Postsale Contingencies  1.50
        • a.  Seller Financing  1.51
        • b.  Condition of Property  1.52
        • c.  Other Postsale Problems  1.53
      • 7.  Client’s Tax and Financial Accounting Requirements  1.54
      • 8.  Client’s Knowledge and Experience Concerning the Property
        • a.  Seller’s Knowledge and Experience  1.55
        • b.  Purchaser’s Knowledge and Experience  1.56
      • 9.  Client’s Transactional Resources  1.57
  • IV.  PRECONTRACT DUE DILIGENCE  1.58
    • A.  Precontract Due Diligence Matters to Review With Seller
      • 1.  Seller’s Objectives  1.59
      • 2.  Consider Valuation of Property  1.60
      • 3.  Review Condition of Title  1.61
      • 4.  Review Condition of Property
        • a.  Existing Information  1.62
        • b.  Additional Information  1.63
        • c.  Special Situation: Environmental Conditions  1.64
      • 5.  Review Legal Issues Affecting Property  1.65
      • 6.  Ascertain Whether Consents Needed From Others
        • a.  Internal Approvals  1.66
        • b.  External Approvals and Nonobjections  1.67
      • 7.  Review Matter From Purchaser’s Perspective  1.68
      • 8.  Assist in Engaging Outside Experts  1.69
    • B.  Precontract Due Diligence Matters to Review With Purchaser
      • 1.  Purchaser’s Objectives  1.70
      • 2.  Financing the Purchase  1.71
      • 3.  Legal Feasibility of Intended Use
        • a.  Necessary Approvals  1.72
        • b.  Effect of Applicable Laws  1.73
          • (1)  Local and Regional Laws  1.74
            • (a)  General Plans  1.75
            • (b)  Specific Plans  1.76
            • (c)  Zoning Ordinances  1.77
            • (d)  Building Codes  1.78
            • (e)  Subdivision Approvals  1.79
            • (f)  Miscellaneous Applicable Laws  1.80
          • (2)  State Laws  1.81
            • (a)  Environmental Laws  1.82
            • (b)  Subdivision Map Act  1.83
            • (c)  Laws on Vested Rights  1.84
            • (d)  Laws Regulating Foreign Investment and Disposition  1.85
            • (e)  Miscellaneous Applicable Laws  1.86
          • (3)  Federal Laws  1.87
            • (a)  Environmental Laws  1.88
            • (b)  Laws Regulating Foreign Investment and Disposition  1.89
            • (c)  Miscellaneous Applicable Laws  1.90
      • 4.  Economic Feasibility of Intended Use  1.91
      • 5.  Consents Needed From Others  1.92
      • 6.  Assist in Engaging Outside Experts  1.93
  • V.  STRUCTURING THE TRANSACTION  1.94
    • A.  Structuring Seller/Purchaser Entities
      • 1.  Advising the Seller  1.95
      • 2.  Advising the Purchaser  1.96
    • B.  Structuring the Transaction Itself  1.97
      • 1.  Choice of Form  1.98
      • 2.  Liquidated Damages  1.99
      • 3.  Warranties  1.100
      • 4.  Tax-Deferred Exchange  1.101
      • 5.  Letter of Intent  1.102
      • 6.  Client’s Ability to Be Flexible  1.103
  • VI.  STRUCTURING AND COORDINATING THE MARKETING PROCESS
    • A.  Marketing Considerations to Review With Seller  1.104
      • 1.  Brokered or Nonbrokered Sale  1.105
      • 2.  Negotiated Sale or Sale Involving Bidding
        • a.  Estate  1.106
        • b.  Non-Estate  1.107
      • 3.  Anticipating Multiple Offers  1.108
    • B.  Marketing Considerations to Review With Purchaser  1.109
      • 1.  Separate Broker  1.110
      • 2.  Negotiated Sale Versus Bidding Sale
        • a.  Estate  1.111
        • b.  Non-Estate  1.112
      • 3.  Anticipating Multiple Offers  1.113
  • VII.  STRUCTURING AND COORDINATING THE NEGOTIATION AND DOCUMENTATION PROCESS  1.114
    • A.  Organizing the Negotiating Team  1.115
    • B.  Conducting Negotiations  1.116
      • 1.  Other Counsel  1.117
      • 2.  Attorney’s Role in Negotiation Process  1.118
    • C.  Generating Transactional Documents
      • 1.  Drafting and Adapting Forms  1.119
      • 2.  Standard Forms; Boilerplate  1.120
    • D.  Rendering Legal Opinions
      • 1.  Contexts in Which Legal Opinions Arise  1.121
      • 2.  How to Know an Opinion When You See One  1.122
        • a.  Watch for Writings in Legal Opinion Contexts  1.123
        • b.  Watch for “Factual,” “Reasoned,” and “Comfort” Opinions  1.124
        • c.  Avoid Unnecessary Opinions  1.125
      • 3.  Legal Standards Applicable to Opinions  1.126
      • 4.  Essential Resources Available to the Attorney  1.127
        • a.  State Bar Reports  1.128
        • b.  ABA Reports  1.129
        • c.  Accord  1.130
  • VIII.  STRUCTURING AND COORDINATING THE CLOSING PROCESS
    • A.  Organizing and Coordinating Escrow
      • 1.  Understanding the Process  1.131
      • 2.  Written Escrow Instructions; Follow-Up  1.132
    • B.  Advising Client on Title Insurance  1.133
      • 1.  Choice of Basic Policy Forms  1.134
      • 2.  Addressing Particular Problems  1.135
      • 3.  Policy Endorsements  1.136
      • 4.  Wording of Policy Provisions  1.137
      • 5.  Insurer’s Financial Ability  1.138
      • 6.  Policy Costs and Required Lead Times  1.139
  • IX.  POSTCLOSING FOLLOW-UP
    • A.  Making Sure All Closing Details Are Complete and Correct  1.140
    • B.  Examples of Follow-Up Matters  1.141
      • 1.  Receipt and Review of Title Policy  1.142
      • 2.  Receipt and Review of Other Closing Documents  1.143
      • 3.  Monitoring Certain Postclosing Notices and Actions  1.144

2

Real Estate Brokers

Randall I. Barkan

Jeffrey H. Belote

  • I.  SCOPE OF CHAPTER  2.1
  • II.  REGULATION OF BROKERS
    • A.  Applicable Laws  2.2
    • B.  Licensing Requirements  2.3
      • 1.  Licensing Qualifications and Renewals  2.4
      • 2.  Corporations and Partners as Licensees
        • a.  Corporations  2.5
        • b.  Partnerships  2.6
        • c.  Fictitious Business Names and Team Names  2.6A
      • 3.  Finders
        • a.  Brokers Distinguished From Finders  2.7
        • b.  Restrictions on Collection of Finder’s Fees  2.8
      • 4.  When a License Is Required  2.9
    • C.  Exemption From Usury for Loans Made or Arranged by Broker  2.10
      • 1.  “Make or Arrange”  2.11
      • 2.  Restrictions on Usury Exemption  2.12
    • D.  Real Estate Advertising  2.13
    • E.  Interpretive Opinions  2.14
    • F.  Distinguish Brokers and Salespersons  2.15
      • 1.  Broker’s Duties  2.16
      • 2.  Broker’s Liabilities  2.17
    • G.  Broker as Escrow Agent
      • 1.  License Requirements  2.18
      • 2.  Decision to Use Broker-Escrow Agent  2.19
  • III.  BROKERS’ SERVICES
    • A.  Residential and Commercial Services  2.20
    • B.  Types of Services Offered  2.21
  • IV.  FACTORS TO CONSIDER IN SELECTING A BROKER  2.22
  • V.  BROKER AS AGENT
    • A.  Agency Versus Contract Law  2.23
    • B.  Creation of Agency Without Written Contract  2.24
    • C.  Disclosure Requirements on Agency Relationship
      • 1.  Residential Disclosure of Agency and Confirmation Forms  2.25
      • 2.  Commercial Disclosure Requirements on Agency Relationship  2.25A
      • 3.  Failure to Comply With Agency Disclosure Requirements  2.26
      • 4.  Agency Elections  2.27
      • 5.  Change in Agency Election  2.28
    • D.  Dual Agency
      • 1.  Disclosure Requirements  2.29
      • 2.  Seller’s Decision Regarding Dual Agency  2.30
      • 3.  Form: Disclosure of Agency Relationship (CC §2079.16)  2.31
      • 4.  Form: Confirmation of Agency Relationship (CC §2079.17)  2.32
    • E.  Unintended Dual Agency  2.33
    • F.  Broker Acting in Nonagency Capacity  2.34
    • G.  Multiple Listing Service  2.35
    • H.  Extent of Broker’s Authority to Bind Principal  2.36
  • VI.  CONTRACTING WITH BROKER
    • A.  Elements Applicable to Both Sellers and Buyers
      • 1.  Essentials of Contract  2.37
      • 2.  Statute of Frauds
        • a.  Contents of Required Writing  2.38
        • b.  Electronic Signatures  2.39
        • c.  No Compensation Without a Writing  2.40
        • d.  Exceptions  2.41
        • e.  Modification of Listing Agreement  2.42
    • B.  Seller-Broker Listing Agreements  2.43
      • 1.  Listing Agreement Checklist  2.44
      • 2.  Types of Listing Agreements
        • a.  Exclusive Right to Sell
          • (1)  General Characteristics  2.45
          • (2)  Form: Residential Listing Agreement (Exclusive Authorization and Right to Sell) (CAR Form RLA)  2.46
        • b.  Exclusive Agency  2.47
        • c.  Open Listing
          • (1)  General Characteristics  2.48
          • (2)  Form: Nonexclusive (“Open”) Agency Residential Listing Agreement (Authorization and Right to Sell) (CAR Form RLAN)  2.49
        • d.  Net Listing Provisions  2.50
      • 3.  Drafting Forms and Provisions for Listing Agreements  2.51
    • C.  Buyer-Broker Agreements
      • 1.  General Considerations  2.52
      • 2.  Form: Buyer Representation Agreement—Exclusive (CAR Form BRE)  2.53
  • VII.  BROKER’S COMPENSATION
    • A.  Prerequisites to Broker’s Right to Commission  2.54
      • 1.  License Required to Recover Compensation  2.55
      • 2.  Written Contract Required  2.56
        • a.  Broker Must Not Represent Self  2.57
        • b.  Contract Provisions Govern  2.58
        • c.  Transactions Other Than Outright Sale  2.59
      • 3.  Procuring Cause of a Ready, Willing, and Able Buyer
        • a.  Procuring Cause
          • (1)  Definition  2.60
          • (2)  When Procuring Clause Is Relevant  2.61
          • (3)  Factors to Consider
            • (a)  Introduction of Parties  2.62
            • (b)  Showing Property  2.63
            • (c)  Completion of Sale  2.64
            • (d)  Type of Listing Agreement  2.65
            • (e)  Cooperating Broker  2.66
            • (f)  Safety or Protection Clause  2.67
        • b.  Ready, Willing, and Able Buyer
          • (1)  Basic Considerations  2.68
          • (2)  Offer Rejected by Seller  2.69
          • (3)  Offer Accepted: Sale Not Completed  2.70
          • (4)  Nonconforming or Conditional Offer Accepted  2.71
      • 4.  Conditional Commission Provision  2.72
        • a.  Examples of Conditions  2.73
        • b.  Provisions in Standard Forms
          • (1)  Residential Exclusive Authorization and Right to Sell  2.74
          • (2)  Real Estate Residential Purchase Agreement and Receipt for Deposit  2.75
    • B.  Broker’s Rights Under Withdrawal-From-Sale Clause  2.76
    • C.  Sale After Listing Period
      • 1.  When Broker Can Recover Commission  2.77
      • 2.  Activity Required to Recover Under Safety Clause  2.78
      • 3.  Danger of Liability for Two Commissions  2.79
    • D.  Amount of Commission
      • 1.  Governed by Listing Agreement; Reasonableness  2.80
      • 2.  Legal Restrictions on Amount of Commission  2.81
    • E.  Broker’s Right to Damages if Buyer Breaches
      • 1.  Listing Agreement Limits on Damages  2.82
      • 2.  Availability of Liquidated Damages  2.83
    • F.  Recovery of Commission From Buyer
      • 1.  Implied Covenant to Complete Purchase  2.84
      • 2.  Interference With Prospective Economic Advantage  2.85
      • 3.  Buyer Representation Agreements  2.85A
  • VIII.  BROKER’S FIDUCIARY DUTIES TO CLIENT
    • A.  Standard of Care  2.86
      • 1.  Duty Arises When Agency Created  2.87
      • 2.  Duty May Survive Closing  2.88
    • B.  Duty to Disclose Material Facts  2.89
      • 1.  No Duty to Elaborate, Verify, or Explain  2.90
      • 2.  Buyer’s Broker Has No Duty to Verify Accuracy of Seller’s Disclosures  2.91
      • 3.  No Heightened Duty to Disclose Because Property Part of Planned Unit Development  2.92
      • 4.  No Duty to Disclose Death That Occurred More Than Three Years Before Sale  2.92A
      • 5.  Conflicts of Interest  2.93
        • a.  Dual Agency  2.94
          • (1)  Failure to Disclose  2.95
          • (2)  Criticism of Dual Agency  2.96
        • b.  Other Multiple Agency Scenarios  2.97
        • c.  Self-Dealing  2.98
          • (1)  Broker’s Burden to Prove Fairness  2.99
          • (2)  Disclosure Requirements  2.100
            • (a)  Indirect Sales  2.101
            • (b)  Broker’s Interest in Property Sold to Client  2.102
        • d.  Secret Profits  2.103
        • e.  Kickbacks, Referral Fees, Other Unearned Fees  2.104
        • f.  The Dishonest Client  2.105
      • 6.  Advice on Price and Value  2.106
        • a.  Best Price Obtainable  2.107
        • b.  Statements to Parties About Price  2.108
        • c.  Speculative Purchases and Resales  2.109
        • d.  Communicating Offers to Seller  2.110
      • 7.  Advice on Excess Monetary Liens and Encumbrances  2.111
    • C.  Duty to Exercise Reasonable Care  2.112
      • 1.  Advice on Financial Soundness  2.113
      • 2.  Advice on Title Matters  2.114
      • 3.  Advice on Real Estate Matters  2.115
      • 4.  Advice on Tax Considerations  2.116
      • 5.  Advice on Legal Matters  2.117
      • 6.  Advice on Short Sales  2.118
    • D.  Duty to Perform With Diligence  2.119
    • E.  Duty to Account for Funds; Duty to Account for File  2.120
    • F.  Limitations on Broker’s Duties
      • 1.  No Duty to Verify Accuracy of Others’ Representations  2.121
      • 2.  No Duty to Advise on Matters Outside of Broker’s Expertise  2.122
  • IX.  CLAIMS AGAINST BROKER
    • A.  Duty to Mediate and Right to Arbitrate
      • 1.  Pre-Litigation and Pre-Arbitration Duty to Mediate  2.123
      • 2.  Right to Arbitrate Claims  2.124
    • B.  Breach of Fiduciary Duty  2.125
      • 1.  Bases of Liability
        • a.  Common Law Liability  2.126
        • b.  Statutory Liability  2.127
      • 2.  Damages for Breach of Fiduciary Duty  2.128
        • a.  Breach of Contract; Fraud Actions  2.129
        • b.  Tort Action  2.130
        • c.  Attorney Fees  2.131
    • C.  Damages for Negligence  2.132
    • D.  Recovery of Secret Profits  2.133
    • E.  Recovery of Commission  2.134
    • F.  Punitive Damages  2.135
    • G.  Indemnity  2.136
    • H.  Recovery of Unsatisfied Judgments From Consumer Recovery Account of Real Estate Fund  2.137
      • 1.  Requirements for Recovery
        • a.  Licensed Defendant  2.138
        • b.  Basis of Judgment  2.139
        • c.  Specified Categories of Actions  2.140
        • d.  No Discharge in Bankruptcy  2.141
      • 2.  Amounts Recoverable  2.142
      • 3.  Procedures  2.143
  • X.  DISCIPLINARY PROCEEDINGS
    • A.  Real Estate Commissioner Proceedings  2.144
    • B.  Penalties Under Real Estate Law  2.145
    • C.  Local Association of Realtors® Proceedings  2.146
  • XI.  BROKER LIABILITY TO THIRD PARTIES
    • A.  Theories of Liability  2.147
    • B.  Principal to Broker; Indemnification  2.148
  • XII.  PRINCIPAL LIABLE TO THIRD PARTIES FOR BROKER’S ACTS
    • A.  Misrepresentations and Nondisclosure  2.149
    • B.  Effect of Exculpatory “As Is” Provision  2.150
    • C.  Broker’s Failure to Disclose Principal  2.151
    • D.  Liability to Subsequent Purchasers  2.152

3

Letters of Intent

Jamie O. Harris

Steve Stwora-Hail

  • I.  WHAT IS A LETTER OF INTENT?  3.1
  • II.  WHEN ARE LETTERS OF INTENT USED IN REAL PROPERTY SALES TRANSACTIONS?  3.2
    • A.  When Parties Prepare Letter Without Attorney’s Assistance  3.3
    • B.  When Attorney Prepares Letter  3.4
      • 1.  Factors to Consider in Using Letter of Intent  3.5
        • a.  Time, Cost, and Efficiency  3.6
        • b.  Method of Structuring the Transaction  3.7
        • c.  Identification of “Deal-Breaker” Issues  3.8
        • d.  Effect on Negotiations  3.9
        • e.  Reduction of Risks Inherent in Partial Performance  3.10
        • f.  Creation of Legally Binding Agreement on Certain Matters; Due Diligence and Confidentiality  3.11
        • g.  Providing a Liquidated Damages Provision in a Letter of Intent  3.12
      • 2.  When to Use Binding or Nonbinding Letter of Intent  3.13
  • III.  RISKS OF USING A LETTER OF INTENT: WHEN IS IT BINDING?  3.14
    • A.  Unintended Enforceability of Letter of Intent  3.15
      • 1.  Objective Manifestation of Mutual Assent  3.16
      • 2.  How to Determine Intent  3.17
        • a.  Parties’ Conduct  3.18
        • b.  Execution of Formal Documents Expressly Contemplated  3.19
        • c.  Language Choice and Verb Tense  3.20
        • d.  Specificity of Essential Terms  3.21
        • e.  Conditional Third Party Approvals  3.22
        • f.  Complexity and Size of Transaction  3.23
      • 3.  Unexpected Enforceability in Texaco v Pennzoil  3.24
      • 4.  Statute of Frauds  3.25
    • B.  Promissory Estoppel  3.26
  • IV.  DUTY TO NEGOTIATE IN GOOD FAITH
    • A.  Basis for Existence of Duty  3.27
    • B.  Necessity of a Contract  3.28
    • C.  Recovery Limited to Reliance Damages  3.29
    • D.  Scope of Duty to Negotiate in Good Faith  3.30
  • V.  NEGOTIATING AND DRAFTING A LETTER OF INTENT
    • A.  Negotiating and Drafting Considerations  3.31
    • B.  Letter of Intent  3.32
      • 1.  Form: Letter Heading  3.33
      • 2.  Form: Introductory Clause  3.34
      • 3.  Form: Parties’ Intentions on Binding or Nonbinding Nature of Letter  3.35
      • 4.  Form: Description of Property  3.36
      • 5.  Form: Purchase Price and Payment of Purchase Price  3.37
      • 6.  Form: Deposits  3.38
      • 7.  Form: Purchase and Sale Agreement  3.39
      • 8.  Form: Buyer’s Contingencies  3.40
      • 9.  Form: Early Access for Inspections  3.41
      • 10.  Form: Seller’s Representations and Warranties  3.42
      • 11.  Form: Escrow  3.43
      • 12.  Form: Commissions  3.44
      • 13.  Form: Confidentiality  3.45
      • 14.  Form: Execution of Letter of Intent  3.46
    • C.  Additional Considerations  3.47

4

The Purchase and Sale Agreement

Timothy N. Brown

Sherry L. Geyer

Jennifer R. Bae

Gordon K. Eng

  • I.  FORM OF AGREEMENT
    • A.  Introduction  4.1
    • B.  Forms and Appendixes  4.2
    • C.  Conditional Purchase Agreements  4.3
    • D.  Options  4.4
    • E.  Use of Printed Forms  4.5
  • II.  ESSENTIAL ELEMENTS OF AGREEMENT
    • A.  Requirements for Enforceability  4.6
    • B.  Parties With Capacity to Contract  4.7
    • C.  Mutual Consent  4.8
    • D.  Description of Property  4.9
    • E.  Lawful Object  4.10
    • F.  Consideration  4.11
    • G.  Writing
      • 1.  General Rules  4.12
      • 2.  Statute of Frauds  4.13
  • III.  PARTIES
    • A.  Persons Without Capacity to Contract  4.14
      • 1.  Minors  4.15
      • 2.  Persons of Unsound Mind  4.16
      • 3.  Guardianship or Conservatorship for Persons Under Legal Disability  4.17
    • B.  Contracting Issues Specific to Certain Parties
      • 1.  Prisoners  4.18
      • 2.  Native American Tribes  4.18A
    • C.  Necessary Parties as Sellers  4.19
    • D.  Methods of Holding Title
      • 1.  Entities  4.20
      • 2.  Community Property; Cotenancies; Separate Property  4.21
    • E.  Issues to Consider in Taking Title
      • 1.  Cotenancy
        • a.  Distinguishing Tenants in Common From Joint Tenants  4.22
        • b.  Partition of Cotenancy  4.23
      • 2.  General Partnerships  4.24
      • 3.  Limited Partnerships  4.25
      • 4.  Limited Liability Partnerships  4.26
      • 5.  Limited Liability Companies  4.27
      • 6.  Corporations  4.28
  • IV.  INTRODUCTORY PROVISIONS OF AGREEMENT
    • A.  Preamble and Recitals  4.29
    • B.  Agreement to Buy and Sell  4.30
    • C.  Description of Property
      • 1.  Legal Description of Real Property  4.31
      • 2.  Improvements and Appurtenances  4.32
      • 3.  Personal Property  4.33
      • 4.  Intangible Property  4.34
  • V.  PURCHASE PRICE AND DEPOSIT
    • A.  Price
      • 1.  Type of Consideration  4.35
      • 2.  Allocation of Purchase Price  4.36
    • B.  Deposit  4.37
    • C.  Purchasing Subject to Existing Encumbrances
      • 1.  Credit to Purchase Price  4.38
      • 2.  Review of Loan Documents
        • a.  In General  4.39
        • b.  Issues in Securitized Loans  4.40
      • 3.  Buyer’s Personal Liability
        • a.  Assuming Encumbrances  4.41
        • b.  Taking Subject to Encumbrance  4.42
      • 4.  Due-on-Sale Provision  4.43
    • D.  Seller Financing  4.44
  • VI.  DUE DILIGENCE  4.45
    • A.  Methods of Providing for Due Diligence  4.46
    • B.  Due Diligence Conditions
      • 1.  Purpose of Due Diligence Conditions  4.47
      • 2.  Drafting Considerations  4.48
    • C.  Seller’s Disclosure Obligations  4.49
    • D.  Title
      • 1.  Marketable Title
        • a.  Definitions of Marketable Title  4.50
        • b.  Examples of Unmarketable Title  4.51
        • c.  Statutory Procedures for Curing Certain Title Defects  4.52
      • 2.  Title Insurance  4.53
        • a.  Preliminary Report
          • (1)  Contents of Preliminary Report  4.54
          • (2)  Nature of Preliminary Report  4.55
          • (3)  Fees and Costs  4.56
        • b.  Purchase Agreement’s Title Insurance Provisions  4.57
      • 3.  Surveys
        • a.  Role of Surveys  4.58
        • b.  Seller’s Knowledge and Notice of Boundaries  4.59
      • 4.  Typical Title Issues
        • a.  Taxes
          • (1)  Real Property Taxes  4.60
          • (2)  Personal Property Taxes  4.61
          • (3)  Federal Tax Liens  4.62
        • b.  Special Assessments  4.63
        • c.  Easements  4.64
        • d.  Party Walls  4.65
        • e.  Covenants, Conditions, and Restrictions  4.66
        • f.  Encroachments  4.67
        • g.  Adverse Possession  4.68
        • h.  Mechanics Liens  4.69
        • i.  Matters Discoverable by Inspection  4.70
    • E.  Leases
      • 1.  In General  4.71
      • 2.  Purchase Free of Leases  4.72
      • 3.  Purchase Subject to Leases  4.73
      • 4.  Agricultural Leases  4.74
      • 5.  Ground Leases  4.75
      • 6.  Third Party Contracts  4.76
    • F.  Physical Condition of Property
      • 1.  In General  4.77
      • 2.  Buyer’s Inspection Rights  4.78
      • 3.  Structural Pest Control Inspection  4.79
      • 4.  Hazardous Substances  4.80
      • 5.  Natural Hazard Disclosure Statement  4.81
      • 6.  Sources of Maps and Other Natural Hazard Information  4.81A
      • 7.  Toxic Mold Disclosure Requirements  4.82
    • G.  Financing  4.83
    • H.  Seller’s Books and Records  4.84
    • I.  Use and Development of Property
      • 1.  In General  4.85
      • 2.  Zoning  4.86
      • 3.  Conditional Use Permits and Variances  4.87
      • 4.  Coastal Development Permits  4.88
      • 5.  Other Permits  4.89
      • 6.  Access  4.90
      • 7.  Annexation  4.91
      • 8.  Subdivision  4.92
      • 9.  Williamson Act and Similar Laws  4.93
      • 10.  California Environmental Quality Act  4.94
        • a.  Requirement for Environmental Review  4.95
        • b.  Exemptions and Negative Declarations  4.96
        • c.  Environmental Impact Reports (EIRs)  4.97
        • d.  Impact on Buyer  4.98
    • J.  Failure to Meet Due Diligence Conditions
      • 1.  Issues Regarding Failure of Conditions  4.99
      • 2.  Recovery of Buyer’s Deposit  4.100
  • VII.  COVENANTS PENDING CLOSING
    • A.  Leases
      • 1.  Covenant by Seller to Obtain Estoppel Certificates  4.101
      • 2.  Limitations on New Leases  4.102
      • 3.  Seller’s Obligation to Terminate Leases  4.103
    • B.  Seller’s Operations of Property  4.104
    • C.  Seller’s Construction Covenants  4.105
    • D.  Insurance  4.106
  • VIII.  REPRESENTATIONS AND WARRANTIES
    • A.  Purpose  4.107
    • B.  Limitations on Warranties  4.108
    • C.  Survival of Warranties  4.109
    • D.  Trend Toward Limited Warranties  4.110
    • E.  Typical Subjects for Seller’s Warranties
      • 1.  Title  4.111
      • 2.  Physical Condition of Property  4.112
      • 3.  Zoning  4.113
      • 4.  Subdivision Map Act Compliance  4.114
      • 5.  Violation of Other Governmental Requirements  4.115
      • 6.  Litigation  4.116
      • 7.  Books, Records, Leases, and Contracts  4.117
      • 8.  Authority  4.118
    • F.  Typical Buyer’s Warranties  4.119
    • G.  “As Is” Provisions  4.120
  • IX.  CLOSING CONDITIONS
    • A.  Purpose of Closing Conditions  4.121
    • B.  Typical Buyer’s Conditions
      • 1.  Title Insurance  4.122
      • 2.  Other Conditions  4.123
    • C.  Typical Seller’s Conditions  4.124
    • D.  Releases and Waivers by Buyer  4.125
    • E.  Closing Subject to Another Transaction  4.126
      • 1.  Simultaneous Exchange  4.127
      • 2.  Multiple Sellers  4.128
      • 3.  Removal of Title Defect  4.129
      • 4.  Purchase of Additional Property  4.130
      • 5.  Sale of Another Property by Buyer  4.131
  • X.  ESCROW AND CLOSING
    • A.  Closing Through Escrow  4.132
    • B.  Prorations  4.133
    • C.  Closing Costs  4.134
    • D.  Brokerage Fees  4.135
    • E.  Possession  4.136
  • XI.  RISK OF LOSS  4.137
    • A.  Condemnation Loss  4.138
    • B.  Casualty Loss  4.139
  • XII.  DEFAULT AND REMEDIES
    • A.  In General  4.140
    • B.  Seller’s Remedies
      • 1.  Damages  4.141
      • 2.  Liquidated Damages  4.142
      • 3.  Specific Performance  4.143
    • C.  Buyer’s Remedies
      • 1.  Damages  4.144
        • a.  Civil Code §3306  4.145
        • b.  Civil Code §3300  4.146
        • c.  Fraud and Misrepresentation  4.147
      • 2.  Methods to Limit Buyer’s Damages  4.148
      • 3.  Specific Performance  4.149
    • D.  Alternative Dispute Resolution  4.150
  • XIII.  MISCELLANEOUS PROVISIONS
    • A.  Notices  4.151
    • B.  Time Is of the Essence  4.152
    • C.  Attorney Fees  4.153
    • D.  Waiver  4.154
    • E.  Assignment by Buyer  4.155
      • 1.  Entity to Be Formed  4.156
      • 2.  Use of Nominees  4.157
    • F.  Interpretation of Agreement  4.158
      • 1.  Integration Provision  4.159
      • 2.  Counterparts  4.160
      • 3.  Binding on Successors  4.161
    • G.  Amendments Only in Writing  4.162
    • H.  No Third Party Benefit  4.163
    • I.  Severability  4.164
    • J.  Tax-Deferred Exchange  4.165
  • XIV.  PURCHASE AND SALE AGREEMENT  4.166
    • A.  Form: Title and Introductory Paragraph  4.167
    • B.  Form: Recitals  4.168
    • C.  Form: Agreement of Sale  4.169
    • D.  Form: Purchase Price  4.170
    • E.  Form: Buyer’s Contingencies  4.171
    • F.  Form: Seller’s Preclosing Covenants  4.172
    • G.  Form: Representations and Warranties  4.173
    • H.  Form: Closing Conditions  4.174
    • I.  Form: Closing  4.175
    • J.  Form: Risk of Loss  4.176
    • K.  Form: Remedies for Default  4.177
    • L.  Form: General Provisions  4.178
    • M.  Form: Signature  4.179
    • N.  Form: Consent of Escrow Holder  4.180
    • O.  Form: Table of Exhibits  4.181
    • P.  Form: Allocation of Purchase Price  4.182

5

Specialty Commercial Purchase and Sale Agreement Provisions: Hotels

Timothy N. Brown

  • I.  INTRODUCTION TO THE PURCHASE AND SALE OF HOTELS  5.1
    • A.  Nature of Hotel Operations  5.2
    • B.  Referral, Management, and Franchise Agreements  5.3
      • 1.  Issues Involved in Franchise or Management Agreements  5.4
      • 2.  Buyer’s Financing  5.5
    • C.  Associated Resort Facilities  5.6
    • D.  Residential and Common Interest Arrangements  5.7
  • II.  PURCHASE AND SALE AGREEMENT PROVISIONS
    • A.  Terminology  5.8
    • B.  Form: Definitions  5.9
    • C.  Assets Being Sold  5.10
    • D.  Form: Hotel Assets and Liabilities  5.11
    • E.  Buyer’s Due Diligence  5.12
    • F.  Form: Due Diligence Documents  5.13
    • G.  Covenants Pending Closing  5.14
    • H.  Form: Seller’s Pre-Closing Covenants  5.15
    • I.  Representations and Warranties  5.16
    • J.  Form: Seller’s Representations and Warranties  5.17
    • K.  Employees  5.18
    • L.  Form: Employees  5.19
    • M.  Closing Conditions  5.20
      • 1.  Required Actions by Franchisor and Manager  5.21
      • 2.  Form: Estoppel Certificate From Hotel Operator  5.21A
      • 3.  Transfer of Liquor License  5.22
      • 4.  Compliance With Bulk Sales Laws  5.23
      • 5.  Prohibition on Material Adverse Changes  5.24
    • N.  Form: Closing Conditions  5.25
    • O.  Escrow and Closing
      • 1.  Prorations  5.26
      • 2.  Liquor License  5.27
      • 3.  Safe Deposits and Baggage  5.28
    • P.  Form: Escrow and Closing  5.29

6

Residential Purchase and Sale Transactions

Howard L. Pearlman

  • I.  INTRODUCTION
    • A.  Relationship to Chapter on Purchase and Sale Agreements  6.1
    • B.  Attorney’s Role in Residential Transactions  6.2
  • II.  RESIDENTIAL PURCHASE AND SALE AGREEMENTS
    • A.  Standard Form Agreements  6.3
      • 1.  Contract Interpretation  6.4
      • 2.  Offer, Acceptance, and Counteroffer  6.5
      • 3.  Selected Provisions of the Purchase Agreement  6.6
        • a.  Description of the Property
          • (1)  The Real Property and Its Encumbrances  6.7
          • (2)  Fixtures Versus Personal Property  6.8
        • b.  “As Is” Clauses  6.9
        • c.  Liquidated Damages and Deposit Forfeiture
          • (1)  Real Property Purchase Contracts   6.10
            • (a)  Owner-Occupied One to Four Units  6.11
            • (b)  Reasonableness  6.12
            • (c)  Initial Sale of New Condominiums  6.13
          • (2)  Deposit Forfeiture  6.14
        • d.  Arbitration  6.15
          • (1)  California Arbitration Act
            • (a)  Format and Notice Requirements  6.16
            • (b)  Exclusions From Arbitration  6.17
          • (2)  Federal Arbitration Act
            • (a)  Preemption  6.18
            • (b)  Application of State Law  6.18A
        • e.  Mediation and Attorney Fees  6.19
        • f.  Contract Contingencies  6.20
          • (1)  Conditions Precedent  6.21
          • (2)  Contingency Removal  6.22
        • g.  Allocations, Prorations, and Disclosure of Transaction Costs  6.23
    • B.  CAR Residential Property Forms
      • 1.  Form: California Residential Purchase Agreement and Joint Escrow Instructions (CAR Form RPA-CA)  6.24
      • 2.  Form: Buyer’s Inspection Advisory (CAR Form BIA)  6.25
      • 3.  Addendums to Purchase Agreement  6.26
        • a.  Form: Assumed Financing Addendum (CAR Form AFA)  6.26A
        • b.  Form: Back-Up Offer Addendum (CAR Form BUO)  6.26B
        • c.  Form: Seller in Possession Addendum (CAR Form SIP)  6.26C
        • d.  Form: Tenant in Possession Addendum (CAR Form TIP)  6.26D
      • 4.  Form: Statewide Buyer and Seller Advisory (CAR Form SBSA)  6.27
      • 5.  Form: Notice to Buyer to Perform (CAR Form NBP)  6.28
      • 6.  Form: Short Sale Addendum (CAR Form SSA)  6.28A
  • III.  SELLER’S DISCLOSURES  6.29
    • A.  Common Law Duty of Disclosure  6.30
      • 1.  Materiality  6.31
        • a.  Physical Property Conditions  6.31A
        • b.  Other Matters  6.31B
        • c.  Corrected Conditions  6.32
      • 2.  Scope and Extent of Disclosure  6.32A
      • 3.  Public Policy Limitations on the Duty to Disclose  6.33
    • B.  Statutory Disclosure Requirements  6.34
      • 1.  Transfer Disclosures  6.35
        • a.  Real Estate Transfer Disclosure Statement  6.36
        • b.  Form: Real Estate Transfer Disclosure Statement (CC §1102.6) (CAR Form TDS)  6.37
        • c.  Local Disclosure and Transfer Requirements
          • (1)  Local Option Transfer Disclosure Statement  6.38
          • (2)  Form: Local Transfer Disclosure Statement (CC §1102.6a)  6.39
          • (3)  Residential Building Records Report  6.40
          • (4)  “Point of Sale” Ordinances  6.41
        • d.  Mello-Roos Act and 1915 Bond Act  6.42
        • e.  Supplemental Property Tax Bill  6.43
        • f.  Former Federal or State Ordnance Locations  6.44
        • g.  Window Security Bars and Safety Release Mechanisms  6.45
        • h.  Industrial Use Zone  6.46
        • i.  Private Transfer Fees  6.46A
      • 2.  Natural Hazard Disclosures  6.47
        • a.  Natural Hazard Zones  6.48
        • b.  Natural Hazard Disclosure Statement  6.49
        • c.  Form: Natural Hazard Disclosure Statement (CAR Form NHD)  6.50
      • 3.  Health and Safety Disclosures
        • a.  Lead-Based Paint Disclosure  6.51
        • b.  Earthquake Hazards  6.52
        • c.  Environmental Hazards
          • (1)  Mandatory Disclosure  6.53
          • (2)  Voluntary Disclosure  6.54
        • d.  Drug Lab Cleanup Order  6.55
        • e.  Registered Sex Offenders (“Megan’s Law”)  6.56
        • f.  Smoke Alarm Compliance Statement  6.57
        • g.  Carbon Monoxide Devices  6.57A
        • h.  Water Heater Compliance Statement  6.58
        • i.  Structural Pest Control Inspection Report  6.59
      • 4.  Common Interest Development Disclosures  6.60
        • a.  Davis-Stirling Act Disclosures  6.61
        • b.  Disclosures in First Sale of Conversion Units  6.62
        • c.  Disclosures in First Sale of Units in a New Common Interest Development  6.63
      • 5.  New Home Sales Disclosures  6.64
      • 6.  Miscellaneous Disclosures
        • a.  Death or Illness of Occupant of Property  6.65
        • b.  Advisability of Title Insurance  6.66
        • c.  FHA/HUD Inspection Disclosure  6.67
        • d.  Flood Disaster Insurance Requirements  6.68
        • e.  Financing Disclosures  6.69
        • f.  Home Energy Rating Program  6.70
        • g.  Gas and Hazardous Liquid Transmission Pipelines Disclosure  6.70A
        • h.  Water-Conserving Plumbing Fixtures  6.70B
  • IV.  BUYER’S DUE DILIGENCE  6.71
    • A.  Buyer’s Duty of Self-Protection  6.72
    • B.  Buyer’s Duty to Investigate  6.73
    • C.  Scope of Buyer’s Due Diligence  6.74
    • D.  Property Inspections  6.75
      • 1.  Pest Inspection  6.76
      • 2.  Home Inspection
        • a.  Nature of Inspection  6.77
        • b.  Home Inspector’s Qualifications and Duties  6.78
        • c.  Prohibited Practices  6.79
  • V.  TITLE AND VESTING  6.80
    • A.  Condition of Title  6.81
      • 1.  Recorded Interests in the Property
        • a.  Preliminary Report  6.82
        • b.  Basic Title Review  6.83
      • 2.  Unrecorded Interests in the Property  6.84
    • B.  Residential Title Insurance Policies  6.85
      • 1.  Coverage Statement  6.86
      • 2.  Exceptions and Exclusions  6.87
      • 3.  Endorsements  6.88
    • C.  Vesting of Title  6.89
      • 1.  Joint Tenancy  6.90
      • 2.  Tenancy in Common  6.91
      • 3.  Community Property  6.92
      • 4.  Registered Domestic Partners  6.93
      • 5.  Community Property With Right of Survivorship  6.94
      • 6.  Tenancy in Partnership  6.95
  • VI.  TAX CONSIDERATIONS  6.96
    • A.  State and Federal Withholding Taxes  6.97
    • B.  Transfer Tax  6.98
    • C.  Property Tax  6.99
    • D.  Capital Gains Tax  6.100
  • VII.  FAIR HOUSING AND ANTIDISCRIMINATION LAWS  6.101
    • A.  Federal Law
      • 1.  Civil Rights Act of 1866  6.102
      • 2.  Fair Housing Act  6.103
    • B.  State Law
      • 1.  Unruh Act  6.104
      • 2.  Fair Employment and Housing Act (FEHA)  6.105
    • C.  Senior Citizen Housing  6.106
      • 1.  Federal Exemption  6.107
      • 2.  State Exemption  6.108
    • D.  Other State Antidiscrimination Laws
      • 1.  Residential Facilities and Family Day Care Homes  6.109
      • 2.  Disabled Access to Condominiums  6.110
    • E.  Local Ordinances  6.111
  • VIII.  SALE OF DISTRESSED PROPERTY  6.111A
    • A.  Deeds in Lieu of Foreclosure  6.111B
    • B.  Short Sales  6.111C
      • 1.  Antideficiency Protection
        • a.  Background  6.111D
        • b.  Antideficiency Protection Under Code of Civil Procedure §580b   6.111E
        • c.  Antideficiency Protection Under Code of Civil Procedure §580e  6.111F
        • d.  Junior Lienholders’ Consent  6.111G
      • 2.  Standard Forms Used; Disclosure Requirements Apply  6.111H
      • 3.  Lender’s Evaluation and Requirements  6.111I
        • a.  Short-Pay Demand Statement [Deleted]  6.111J
        • b.  Home Affordable Foreclosure Alternatives (HAFA) Program [Deleted]  6.111K
          • (1)  HAFA Eligibility Requirements [Deleted]  6.111L
          • (2)  HAFA Procedures [Deleted]  6.111M
            • (a)   Short Sale Pre-Approval [Deleted]  6.111N
              • (i)  Short Sale Notice [Deleted]  6.111O
              • (ii)  Parties’ Obligations After Issuance of the Short Sale Notice (SSN) [Deleted]  6.111P
            • (b)  Short-Sale Approval Prior to Issuance of a Short Sale Notice (SSN) [Deleted]  6.111Q
            • (c)  Subordinate Lienholders [Deleted]  6.111R
          • (3)  Financial Incentives to Participate in HAFA Program [Deleted]  6.111S
      • 4.  Tax Considerations  6.111T
        • a.  Cancellation-of-Debt Income  6.111U
        • b.  Net Short-Sale Proceeds as Capital Gain  6.111V
    • C.  Home Equity Sales Contracts  6.112
      • 1.  Requisites for Enforceability  6.113
      • 2.  Prohibited Conduct and Remedies  6.114
    • D.  Lender-Owned (REO) Sales
      • 1.  REO Sales Described  6.115
      • 2.  Disclosure Requirements  6.116
      • 3.  Buyer’s Choice of Escrow and Title Insurance Services  6.117
    • E.  Form: REO Advisory (CAR Form REO)  6.118

7

Hazardous Waste Considerations

Kenneth S. Kramer

William D. Wick

  • I.  TOXIC CONTAMINATION
    • A.  Introduction  7.1
    • B.  What Is Toxic Contamination?
      • 1.  Frequently Encountered Toxics  7.2
        • a.  Soil Contamination  7.3
        • b.  Groundwater Contamination  7.4
        • c.  Building Contamination
          • (1)  Vapor Intrusion  7.5
          • (2)  Asbestos and Other Contaminants  7.5A
        • d.  Storage Tanks  7.6
        • e.  Air Quality  7.7
      • 2.  Legal Definitions of Toxics
        • a.  Federal Statutes  7.8
        • b.  California Statutes  7.9
    • C.  Remediation Obligations and Defenses  7.10
      • 1.  Potentially Responsible Parties  7.11
        • a.  Owners  7.12
        • b.  Lessees as “Owners”  7.13
        • c.  Operators, Arrangers, Transporters  7.14
      • 2.  Remediation Orders  7.15
      • 3.  Cost Recovery and Contribution  7.16
        • a.  Parties Eligible for Cost Recovery Actions  7.17
        • b.  Liability and Damages Issues  7.18
        • c.  Attorney Fees  7.19
        • d.  Common Law Actions  7.20
      • 4.  Private Agreement Limitations  7.21
      • 5.  CERCLA Defenses  7.22
        • a.  The Third Party Defense  7.23
        • b.  The Innocent Landowner Defense  7.24
          • (1)  Requirements to Qualify for Innocent Landowner Status  7.25
          • (2)  Application to Property Purchased Before May 31, 1997  7.26
          • (3)  Application to Property Purchased Between May 31, 1997, and November 1, 2006  7.27
          • (4)  Application to Property Purchased On or After November 1, 2006  7.28
          • (5)  Comparison of “All Appropriate Inquiries” Standards  7.29
        • c.  The Contiguous Property Owner Defense  7.30
        • d.  The Bona Fide Prospective Purchaser Defense  7.31
      • 6.  California Land Reuse and Revitalization Act of 2004  7.32
        • a.  Eligible Property  7.33
        • b.  Bona Fide Purchaser  7.34
        • c.  Immunity From Cleanup Costs  7.35
    • D.  Investigation and Review of Environmental Conditions
      • 1.  California Toxic Disclosure Statutes  7.36
      • 2.  Environmental Assessments
        • a.  Phase I Reports  7.37
        • b.  Phase II Reports  7.38
        • c.  Remedial Investigation/Feasibility Study/Remedial Action Plan  7.39
      • 3.  Seller’s Review of Property  7.40
      • 4.  Buyer’s Review of Property  7.41
      • 5.  Use of Environmental Consultants
        • a.  Scope of Work  7.42
        • b.  Confidentiality  7.43
        • c.  Principal-Agent Considerations  7.44
  • II.  CONTRACTUAL PROVISIONS ON TOXIC CONTAMINATION  7.45
    • A.  Seller’s Documentation of Knowledge
      • 1.  Disclosure of Knowledge  7.46
      • 2.  Representations and Warranties  7.47
        • a.  Form: Definition of “Hazardous Materials”  7.48
        • b.  Form: Absolute Representation  7.49
        • c.  Form: Best of Knowledge  7.50
        • d.  Form: Best of Knowledge (Specific Individuals)  7.51
        • e.  Form: Best of Knowledge With Exception for Phase I Report  7.52
    • B.  Buyer’s Rights Regarding Unknown Contamination  7.53
      • 1.  Conditions Precedent for Due Diligence  7.54
      • 2.  Lessee’s Estoppel Provision  7.55
      • 3.  Seller’s De Minimis Obligation to Remediate  7.56
      • 4.  Form: Seller to Remediate De Minimis Contamination  7.57
      • 5.  Rights to Terminate  7.58
      • 6.  Loan Contingency Relationship  7.59
    • C.  Renegotiation of Price or Other Terms When Undisclosed Toxics Are Found  7.60
    • D.  Release Clauses  7.61
      • 1.  Form: Broad Clause Releasing Seller  7.62
      • 2.  Form: Limited Clause Releasing Seller; Seller Retains Some Responsibilities  7.63
      • 3.  “As Is” Clauses as Release Clauses  7.64
      • 4.  Form: Expanded “As Is” Clause  7.65
    • E.  Indemnification  7.66
      • 1.  Seller’s Indemnification of Buyer
        • a.  Factors to Consider  7.67
        • b.  Form: Seller’s Limited Indemnification of Buyer  7.68
      • 2.  Buyer’s Indemnification of Seller
        • a.  Assumed Toxic Condition  7.69
        • b.  Form: Buyer’s Broad Form Indemnification of Seller  7.70
        • c.  Postclosing Discoveries
          • (1)  Preexisting Conditions  7.71
          • (2)  Conditions Caused by Buyer After Closing  7.72
    • F.  Remediation  7.73
      • 1.  Responsibility for Costs  7.74
      • 2.  Control of Process  7.75
      • 3.  Disposal  7.76
      • 4.  Agency Assurances—Comfort Letter and Prospective Purchaser Agreement  7.77
    • G.  Securing Remediation Costs
      • 1.  Remediation Cost Estimate  7.78
      • 2.  Escrow of Funds  7.79
      • 3.  Form: Remediation Escrow Agreement  7.80
      • 4.  Letters of Credit  7.81
      • 5.  Guaranty  7.82
      • 6.  Offset Against Buyer’s Note  7.83
    • H.  Miscellaneous Provisions
      • 1.  Arbitration Clause  7.84
      • 2.  Access to Property  7.85
  • III.  INSURANCE MATTERS
    • A.  Title Insurance Products  7.86
    • B.  Environmental Liability Insurance  7.87
  • IV.  LENDER CONCERNS
    • A.  Nature of Lender’s Liability and Underwriting  7.88
    • B.  Loan Application Provisions  7.89
    • C.  Loan Document Provisions  7.90
      • 1.  Representations  7.91
      • 2.  Assurances on Remediation  7.92
      • 3.  Right to Waive Security  7.93
      • 4.  Access, Right to Remediate, and Receivership  7.94
      • 5.  Survival of Indemnities and Other Agreements After Foreclosure  7.95

8

Options, Rights of First Refusal, Puts, and Similar Rights

Nolan M. Kennedy

Thomas H. Jamison

Gordon K. Eng

  • I.  GENERAL PRINCIPLES
    • A.  Definition of Option  8.1
    • B.  Types of Options  8.2
    • C.  Options in the Residential Context  8.3
    • D.  Options as Two Agreements  8.4
      • 1.  Unilateral Contract for Right to Purchase  8.5
      • 2.  Bilateral Contract for Purchase and Sale  8.6
      • 3.  Additional Provisions in Option Contracts  8.7
  • II.  CREATION OF OPTION CONTRACT  8.8
    • A.  Essential Elements of an Option Contract
      • 1.  Essential Terms  8.9
      • 2.  Consideration for Option  8.10
        • a.  Adequacy of Consideration  8.11
        • b.  Consideration for Options Within Other Agreements  8.12
        • c.  Consideration Other Than Money  8.13
      • 3.  Definiteness  8.14
      • 4.  Statute of Frauds  8.15
      • 5.  Term of Option and Rule Against Perpetuities  8.16
      • 6.  Special Notices Required for Option Agreements  8.17
    • B.  Recording Option Contracts; Priority Issues  8.18
    • C.  Title Insurance for Option Contracts  8.19
  • III.  EXERCISE OF OPTION
    • A.  Method of Exercise  8.20
    • B.  Who Can Exercise an Option  8.20A
    • C.  Time to Exercise  8.21
    • D.  Priority of Option on Exercise  8.22
    • E.  Waiver of Defective Exercise  8.23
    • F.  Changed Terms, Added Conditions, or Termination of Option After Exercise  8.24
  • IV.  TRANSFER AND TERMINATION OF OPTIONS
    • A.  Transferability of Options
      • 1.  When Option Is Assignable  8.25
      • 2.  Transfer of Property Subject to Option  8.26
      • 3.  Death of Optionor or Optionee  8.27
    • B.  Effect of Bankruptcy  8.28
    • C.  Condemnation and Destruction
      • 1.  Condemnation  8.29
      • 2.  Destruction  8.30
      • 3.  Effect on Optioned Property  8.31
    • D.  Termination  8.32
  • V.  ENFORCEMENT AND REMEDIES  8.33
  • VI.  TAX CONSIDERATIONS  8.34
    • A.  Income Tax Treatment of Option Payment
      • 1.  Optionor  8.35
      • 2.  Optionee  8.36
    • B.  Tax Implication of Transfer of Option Right  8.37
  • VII.  ADVANTAGES AND DISADVANTAGES FOR OPTIONOR AND OPTIONEE  8.38
    • A.  Substitute for Liquidated Damages  8.39
    • B.  Tax Deferral  8.40
    • C.  Inducement to Investigate  8.41
    • D.  Risk of Better Price  8.42
    • E.  Uncertainty of Sale  8.43
  • VIII.  USES OF OPTIONS  8.44
    • A.  Land Acquisition and Land Use Development  8.45
      • 1.  Investigating Property  8.46
      • 2.  Processing Land Use Applications  8.47
      • 3.  Purchase Price  8.48
    • B.  Obtaining Financing  8.49
    • C.  Speculating on Value Increase  8.50
    • D.  Assembling Multiple Parcels  8.51
    • E.  Positioning for an Exchange Transaction  8.52
    • F.  “Put” in Favor of Seller  8.53
    • G.  Option as Financing Device  8.54
    • H.  Convertible Mortgages  8.55
    • I.  Joint Ownership Agreements  8.56
    • J.  Options to Purchase in Lease  8.57
    • K.  Right of First Refusal; Right of First Offer  8.58
  • IX.  FORM OF OPTION AGREEMENT
    • A.  Form: Introduction; Parties; Recitals  8.59
    • B.  Form: Grant of Option  8.60
    • C.  Form: Term of Option  8.61
    • D.  Form: Consideration  8.62
    • E.  Form: Successive Payments to Extend Option Term  8.63
    • F.  Form: Exercise of Option  8.64
    • G.  Form: Sequential Exercise of Option  8.65
    • H.  Form: Covenants and Warranties of Optionor Concerning Property  8.66
    • I.  Form: Condition of Title  8.67
    • J.  Form: Investigation of Property  8.68
    • K.  Form: Governmental Permits  8.69
    • L.  Form: Assignment of Option  8.70
    • M.  Form: Risk of Loss  8.71
    • N.  Form: Condemnation  8.72
    • O.  Form: Memorandum of Option to Be Recorded  8.73
    • P.  Form: Broker’s Commission  8.74
    • Q.  Form: Time of Essence; Failure to Exercise  8.75
    • R.  Form: Attorney Fees  8.76
    • S.  Form: Notices  8.77
    • T.  Form: Entire Agreement  8.78
    • U.  Form: Waiver  8.79
    • V.  Form: Captions; Signatures  8.80
    • W.  Form: Memorandum of Option  8.81
    • X.  Form: Right of First Offer Agreement  8.82
    • Y.  Form: Right of First Refusal Agreement  8.83

9

Seller Financing

Alice L. Akawie

Lauren M. LaPietra

Peter S. Muñoz

W. Stephen Wilson

  • I.  INTRODUCTION
    • A.  Why Seller Financing?  9.1
    • B.  Lawyer’s Role
      • 1.  Financing  9.2
      • 2.  Structuring the Buyer  9.3
      • 3.  Standard of Care
        • a.  To Clients  9.4
        • b.  To Third Parties  9.5
    • C.  Usury Considerations
      • 1.  Seller Financing  9.6
      • 2.  Third Party Wraparound Financing  9.7
    • D.  Antideficiency Laws
      • 1.  Applicability of Antideficiency Protections  9.8
      • 2.  Exceptions to Antideficiency Protections  9.9
  • II.  DISCLOSURE REQUIREMENTS
    • A.  Seller’s Disclosures
      • 1.  Arranger of Credit  9.10
      • 2.  Balloon Payment  9.11
      • 3.  Appraisals  9.12
    • B.  Form: Seller Financing Addendum and Disclosure (CAR Form SFA)  9.13
  • III.  SELLER-FINANCING DEVICES
    • A.  Installment Land Contract  9.14
      • 1.  Distinguished From Purchase and Sale Agreement  9.15
      • 2.  Decline in Popularity; Disadvantages  9.16
      • 3.  Protective Statutory and Regulatory Provisions  9.17
    • B.  Lease With Option to Purchase
      • 1.  Reasons to Use  9.18
      • 2.  Hidden Security Device  9.19
      • 3.  Distinguishing Lease-Option From Hidden Security Device
        • a.  How Courts Distinguish  9.20
        • b.  How Tax Treatment Differs  9.21
    • C.  Promissory Note Secured by Mortgage or Deed of Trust  9.22
    • D.  Buyer’s Obligation to Comply With FIRPTA  9.23
  • IV.  POSTPONING SELLER’S INCOME TAX LIABILITY
    • A.  Installment Method of Reporting Gain  9.24
      • 1.  Statutory Requirements; Definitions  9.25
      • 2.  Computation Examples
        • a.  Typical Installment Sale  9.26
        • b.  Effect of Recapture  9.27
        • c.  Mortgage in Excess of Basis  9.28
      • 3.  Wraparound Financing  9.29
      • 4.  Seller’s Ability to Limit Prepayments
        • a.  Restrictions on Limitations on Prepayment  9.30
        • b.  Monetary Penalty on Prepayments  9.31
      • 5.  Treatment of Dealers  9.32
      • 6.  Disposition of Installment Obligations  9.33
      • 7.  Original Issue Discount and Imputed Interest  9.34
        • a.  Original Issue Discount  9.35
        • b.  Imputed Interest Rules  9.36
        • c.  Applicable Federal Rate  9.37
    • B.  Open-Ended or Contingent Sales Price  9.38
    • C.  Relationship to Buyer’s Financing Needs  9.39
  • V.  DEFERRING PAYMENTS; FORM PROVISIONS FOR PURCHASE AND SALE AGREEMENT
    • A.  Form: Cash Downpayment  9.40
    • B.  Form: Credit for Existing Encumbrances  9.41
    • C.  Promissory Note for Balance Due
      • 1.  Form of Loan Documents  9.42
      • 2.  Security; Title Insurance  9.43
      • 3.  Computation of Payments  9.44
      • 4.  Form: Note for Balance; First-Year Payments Limited  9.45
      • 5.  Form: Note for Balance; Annual Payments Limited  9.46
    • D.  Form: Acceleration on Default  9.47
  • VI.  RETAINING EXISTING ENCUMBRANCES
    • A.  Buyer’s Assumption of, or Sale Subject to, Existing Encumbrances  9.48
      • 1.  Due-on-Sale and Due-on-Encumbrance Clauses  9.49
        • a.  Enforceability of Clauses
          • (1)  Due-on-Sale Clauses  9.50
          • (2)  Due-on-Encumbrance Clauses  9.51
        • b.  Prohibition on Prepayment Penalties  9.52
        • c.  Impact on Buyer  9.53
      • 2.  Transferability of Government Financing  9.54
      • 3.  Impact of Antideficiency Laws  9.55
      • 4.  Restrictions on Foreclosure  9.55A
    • B.  All-Inclusive Note and Deed of Trust
      • 1.  Definition  9.56
      • 2.  Purposes and Uses
        • a.  Higher Effective Interest Rate  9.57
        • b.  Reporting Interest for Tax Purposes  9.58
        • c.  Seller’s Control Over Security  9.59
        • d.  Tax Considerations; Installment Reporting  9.60
      • 3.  Drafting All-Inclusive Instruments  9.61
        • a.  Consistency With Underlying Obligations and Encumbrances; Prepayments; Amortization  9.62
        • b.  Rights in Case of Default  9.63
        • c.  Foreclosure  9.64
      • 4.  Form: Provision in Purchase and Sale Agreement for All-Inclusive Financing  9.65
  • VII.  SELLER’S PARTICIPATION IN BUYER’S FINANCING
    • A.  “Loan Originators”  9.65A
    • B.  Subordination  9.66
      • 1.  Subordinating to Construction Loans
        • a.  Competing Factors  9.67
        • b.  Methods of Providing First Lien  9.68
          • (1)  Order of Recordation  9.69
          • (2)  Automatic Subordination; Subordination Agreement  9.70
        • c.  Risks to Seller  9.71
        • d.  Seller’s Benefits  9.72
      • 2.  Types of Subordination Agreements  9.73
        • a.  Executory Subordination Agreement  9.74
          • (1)  Enforceable: Certain and Reasonable  9.75
          • (2)  Required Terms  9.76
          • (3)  Form: Optional Terms  9.77
          • (4)  Form: Executory Subordination Provision in Purchase Agreement  9.78
          • (5)  Subordination Addendum
            • (a)  Information to Include in Subordination Addendum  9.79
            • (b)  Form: Subordination Addendum  9.80
            • (c)  Form: Subordination to Permanent Loan  9.81
            • (d)  Form: Execution of Additional Subordination Agreement  9.82
        • b.  Executed Subordination Agreement  9.83
          • (1)  Discrepancy Between Agreement and Loan  9.84
          • (2)  Misapplication of Funds  9.85
          • (3)  Automatic Subordination Agreement  9.86
          • (4)  Form: Automatic Subordination Agreement  9.87
        • c.  De Facto Subordination Agreement  9.88
      • 3.  Cautionary Language Required  9.89
        • a.  Automatic Subordination  9.90
        • b.  Security Instrument Permits Proceeds to be Used for Nonimprovement Purposes  9.91
        • c.  Agreement Causes Security Interest to Become Junior  9.92
        • d.  Agreement Permits Proceeds to be Used for Nonimprovement Purposes  9.93
        • e.  Right to Waive  9.94
      • 4.  Effect of Subordination on Antideficiency Rules
        • a.  Exemption From Antideficiency Protection  9.95
        • b.  Express Waiver Not Required  9.96
        • c.  Mere Promise to Subordinate Not Sufficient  9.97
        • d.  Nonconstruction Loan  9.98
        • e.  Relevance of Loan Amount  9.99
    • C.  Release and Partial Reconveyance  9.100
      • 1.  Requirement of Certainty and Fairness
        • a.  Impact on Specific Performance  9.101
        • b.  Impact on Damages  9.102
      • 2.  Subdivision Requirements
        • a.  Subdivision Map Act  9.103
        • b.  Subdivided Lands Act  9.104
      • 3.  Form: Partial Release of Determined Lots  9.105
      • 4.  Form: Partial Release (Lots Not Determined); Limiting Buyer’s Discretion  9.106
      • 5.  Form: Partial Release (Lots Not Determined); Adjustment of Release Price  9.107
      • 6.  Form: Unencumbered Conveyance at Close of Escrow  9.108
      • 7.  Form: Substituted Security for Releases  9.109
      • 8.  Form: Release on Condemnation Award  9.110

10

Deeds

Scott A. Sommer

  • I.  REQUISITES OF DEEDS
    • A.  Legal Definitions  10.1
    • B.  Types of Deeds
      • 1.  Grant Deed
        • a.  Features and Incidentals of the Grant  10.2
        • b.  Form: Statutory Grant Deed Form (CC §1092)  10.3
      • 2.  Quitclaim Deed  10.4
      • 3.  Warranty Deed  10.5
    • C.  Necessary Elements of Deeds  10.6
  • II.  COMPONENTS ANALYZED
    • A.  Form: Grant Deed  10.7
    • B.  Recording Information
      • 1.  “Recording Requested By”  10.8
      • 2.  Return Name and Address  10.9
      • 3.  Tax Statements  10.10
      • 4.  Documentary Transfer Tax
        • a.  Statutory Requirements  10.11
        • b.  Separate Statement of Documentary Transfer Tax  10.12
    • C.  Body of Deed
      • 1.  Consideration  10.13
      • 2.  Grantor Recitals  10.14
        • a.  Form: Grantor’s Name Different From Record Owner’s Name  10.15
        • b.  Form: Unincorporated Association  10.16
        • c.  Form: Partnership  10.17
        • d.  Form: Limited Partnership  10.18
        • e.  Form: Trustee  10.19
        • f.  Form: Corporation  10.20
        • g.  Form: Joint Venture  10.21
        • h.  Other Grantor Clauses  10.22
      • 3.  Words of Conveyance  10.23
      • 4.  Grantee
        • a.  Requirement of Capacity  10.24
        • b.  Requirement of Certainty  10.25
        • c.  Status of Grantee  10.26
        • d.  Other Required Elements  10.27
          • (1)  Nature of Estate  10.28
          • (2)  Nature of Ownership  10.29
          • (3)  Proportion of Interest  10.30
        • e.  Grantee Recitals
          • (1)  Form: Joint Tenancy  10.31
          • (2)  Form: Tenancy in Common  10.32
          • (3)  Form: Community Property  10.33
          • (4)  Form: Changing Title From Joint Tenancy to Community Property  10.34
      • 5.  Description  10.35
      • 6.  Exhibits and Riders  10.36
      • 7.  “Subject to” Clauses  10.37
      • 8.  Special Recitals  10.38
        • a.  Form: Spouse-to-Spouse Recital of Separate Property  10.39
        • b.  Form: Consent to Joint Tenancy Between One Spouse and Another Person  10.40
        • c.  Form: Deed in Lieu of Foreclosure  10.41
        • d.  Correcting, Removing, and Releasing Recitals
          • (1)  Form: Correcting or Clarifying Description of Property  10.42
          • (2)  Form: Removing Cloud on Title  10.43
          • (3)  Form: Release of Exception or Reservation  10.44
        • e.  Compliance With Obligation Recitals
          • (1)  Form: Conveyance in Performance of Sales Agreement  10.45
          • (2)  Form: Conveyance on Exercise of Option  10.46
          • (3)  Form: Conveyance on Distribution of Trust  10.47
        • f.  Termination Recitals
          • (1)  Form: Termination of Recorded Lease  10.48
          • (2)  Form: Elimination of Covenants, Conditions, and Restrictions  10.49
          • (3)  Form: Removal of Power of Termination  10.50
        • g.  Reservation Recitals
          • (1)  Form: Mineral Rights  10.51
          • (2)  Form: Life Estate  10.52
      • 9.  Revocable Transfer on Death Deed  10.52A
    • D.  Execution
      • 1.  Date of Execution  10.53
      • 2.  Definition  10.54
      • 3.  Requirements
        • a.  Who Signs  10.55
        • b.  Spouse’s Signature  10.56
        • c.  Homestead Declaration  10.57
        • d.  Termination of Joint Tenancy  10.58
      • 4.  Particular Executions
        • a.  Form: Mark of Executing Party  10.59
        • b.  Form: Signature of Attorney-in-Fact  10.60
        • c.  Form: Signature of Trustee  10.61
        • d.  Form: Signature of Guardian or Conservator  10.62
        • e.  Form: Signature of Executor or Administrator  10.63
        • f.  Form: Signature of Partner  10.64
        • g.  Form: Signature of Corporate Officer  10.65
        • h.  Form: Signature of Joint Venturer  10.66
    • E.  Acknowledgment
      • 1.  Legal Requirements  10.67
      • 2.  Documents That Need Not Be Acknowledged  10.68
      • 3.  Effect of Acknowledgment  10.69
      • 4.  Proof of Execution of Unacknowledged Documents  10.70
    • F.  Delivery  10.71
      • 1.  Unconditional Delivery Is Required  10.72
      • 2.  Rebuttable Presumptions on Delivery  10.73
      • 3.  Constructive Delivery  10.74
    • G.  Acceptance  10.75
  • III.  VALIDITY OF DEEDS
    • A.  Void Deeds  10.76
    • B.  Voidable Deeds  10.77

11

Descriptions of Property

Scott A. Sommer

  • I.  INTRODUCTION
    • A.  Historical Background  11.1
    • B.  Nature and Purpose of Descriptions  11.2
    • C.  The Lawyer’s Function
      • 1.  Review of Legal Description  11.3
      • 2.  Zoning and Subdivision Considerations  11.4
      • 3.  Forms of Ownership  11.5
      • 4.  Creation of Easements  11.6
      • 5.  Common Interest Developments  11.7
    • D.  Limitations on Lawyer’s Function  11.8
  • II.  FINDING CORRECT DESCRIPTIONS
    • A.  Deeds  11.9
    • B.  Preliminary Report or Title Insurance Policy  11.10
    • C.  Inspection of Premises  11.11
    • D.  Surveys and Engineering Studies  11.12
    • E.  Title Services  11.13
  • III.  READING DESCRIPTIONS
    • A.  Certainty Requirement  11.14
    • B.  Ambiguity  11.15
    • C.  Acreage Problems  11.16
    • D.  Reference to Government Surveys  11.17
      • 1.  Base and Meridian  11.18
      • 2.  Range and Township  11.19
      • 3.  Section  11.20
      • 4.  Quarters  11.21
    • E.  California Surveying Systems
      • 1.  California Coordinate System of 1927  11.22
      • 2.  Alternative Surveying and Mapping Systems  11.23
    • F.  Subdivision or Parcel Maps  11.24
    • G.  Reference to Other Recorded Instruments  11.25
    • H.  Metes and Bounds Descriptions  11.26
      • 1.  Natural Monuments  11.27
      • 2.  Artificial Monuments  11.28
      • 3.  Adjoining Lands  11.29
      • 4.  Streets and Public Rights-of-Way  11.30
      • 5.  Railroad Rights-of-Way  11.31
      • 6.  Courses and Distances
        • a.  Bearings and Degrees  11.32
        • b.  General Courses  11.33
        • c.  Curves  11.34
        • d.  Use of Symbols and Written Descriptions  11.35
        • e.  Monuments  11.36
        • f.  Measurements  11.37
      • 7.  Quasi Metes and Bounds  11.38
      • 8.  Designation of North  11.39
    • I.  Lot Division Description  11.40
    • J.  General or Common Description  11.41
  • IV.  MATTERS ALTERING OR AFFECTING DESCRIPTIONS
    • A.  Effect on Record Title  11.42
    • B.  Easements
      • 1.  Benefit and Burden  11.43
      • 2.  Rules of Construction and Interpretation  11.44
        • a.  Limitation to Specified Width or Use  11.45
        • b.  Right to the Use of Streets and Alleys Reflected on Subdivision Map  11.46
        • c.  Inclusion of Rights for Utilities  11.47
        • d.  Doctrine of Practical Location and Amendment of Written Descriptions by Actual Location  11.48
        • e.  Interpretation by Language of the Document and Extrinsic Evidence  11.49
        • f.  Accommodation of Future Needs  11.50
        • g.  Exercise of General Grant of Easement in a Particular Course or Manner  11.51
        • h.  Exclusivity of Easements  11.52
      • 3.  Off-Record Easements  11.53
        • a.  Easements by Implication  11.54
        • b.  Easements by Implied Reservation  11.55
        • c.  Easement of Necessity  11.56
        • d.  Easement by Prescription  11.57
      • 4.  Termination of Easements  11.58
        • a.  Termination by Merger  11.59
        • b.  Termination by Destruction of Servient Tenement  11.60
        • c.  Termination by Incompatible Use or Misuse  11.61
        • d.  Termination by Abandonment  11.62
        • e.  Termination by Nonuse of Easements Acquired by Prescription  11.63
        • f.  Termination by Adverse Possession  11.64
      • 5.  Identification of Dominant Tenement  11.65
      • 6.  Change in Burden on Servient Tenement  11.66
      • 7.  Appurtenant or in Gross  11.67
        • a.  Distinguishing Characteristics  11.68
        • b.  Transferability  11.69
      • 8.  Ambiguous Description  11.70
      • 9.  Uncertain Duration  11.71
      • 10.  Failure to Designate as Easement  11.72
      • 11.  Exception or Reservation  11.73
      • 12.  Failure to State All Purposes and Limitations  11.74
      • 13.  Precautions for Buyers  11.75
      • 14.  Precautions for Sellers  11.76
      • 15.  Adverse Possession, Prescription, and Implied Dedication  11.77
    • C.  Doctrines of Agreed Boundaries and of Practical Location
      • 1.  Doctrine of Agreed Boundaries  11.78
      • 2.  Doctrine of Practical Location  11.79
    • D.  Abandonment and Vacation  11.80
    • E.  Effect of Water on Land  11.81
      • 1.  High-Water Mark, Low-Water Mark  11.82
      • 2.  Thread or Middle of Lake or Stream  11.83
      • 3.  Islands  11.84
      • 4.  Formerly Navigable Waters  11.85
      • 5.  Avulsion  11.86
    • F.  Oil and Gas  11.86A
    • G.  Eminent Domain  11.87
    • H.  Merger of Parcels  11.87A
    • I.  Estoppel  11.88
  • V.  ELIMINATING DEFECTS IN DESCRIPTIONS
    • A.  Solutions to Typical Problems
      • 1.  Overlapping Descriptions  11.89
      • 2.  Failure to Close Metes and Bounds Description  11.90
      • 3.  Incomplete, Confusing, or Erroneous Descriptions  11.91
      • 4.  Reservation or Exception in Successive Descriptions  11.92
      • 5.  Fraudulent or Erroneous Surveys  11.93
    • B.  Drafting to Eliminate Defects
      • 1.  Drafting Principles  11.94
        • a.  Avoid Nonessential Language  11.95
        • b.  Avoid Ambiguity  11.96
        • c.  Use Precise Language  11.97
        • d.  Know Statutory Rules of Construction  11.98
      • 2.  Drafting Particular Descriptions  11.99
      • 3.  Form: Description by Reference to Subdivision Map  11.100
      • 4.  Form: Description by Reference to Rectangular Survey Map  11.101
      • 5.  Form: Description by Reference to Deed or Other Instrument  11.102
      • 6.  Description by Metes and Bounds  11.103
    • C.  Easements  11.104
      • 1.  Form: Reservation of Easement in Grantor  11.105
      • 2.  Form: Transfer of Appurtenant Easement  11.106
      • 3.  Form: Creation of Easement  11.107
      • 4.  Release of Easement  11.108
    • D.  Describing Multiple Parcels  11.109
    • E.  Eliminating Water Problems  11.110
    • F.  Contract Provision for Expressing Covenants in Deed  11.111
    • G.  Statutory Remedies
      • 1.  Quiet Title  11.112
      • 2.  Declaratory Relief  11.113
      • 3.  Good Faith Improver  11.114
      • 4.  Marketable Record Title  11.115
      • 5.  Expired Offers of Dedication  11.116
      • 6.  Destroyed Land Records  11.117
      • 7.  Cullen Earthquake Act  11.117A
  • VI.  DESCRIBING PERSONAL PROPERTY  11.118

12

Covenants of Title

Scott A. Sommer

  • I.  INTRODUCTION  12.1
    • A.  The Recording Act  12.2
    • B.  Modern Use of Title Insurance  12.3
  • II.  COVENANTS OF TITLE
    • A.  Contractual Covenants  12.4
    • B.  Implied Covenants in California Statutory Grant Deed (CC §1113)  12.5
    • C.  Covenant of Seisin and Good Title  12.6
    • D.  Covenant Against Encumbrances  12.7
    • E.  Covenant of Right to Convey  12.8
    • F.  Covenants of Quiet Enjoyment and Warranty  12.9
    • G.  Covenant for Further Assurance  12.10
    • H.  Lineal and Collateral Warranties  12.11
    • I.  Form: Warranty Deed Covenants  12.12
  • III.  REMEDIES FOR BREACH OF TITLE COVENANTS
    • A.  What Constitutes Breach
      • 1.  Of Covenant of Seisin and Right to Convey  12.13
      • 2.  Of Covenant Against Encumbrances  12.14
      • 3.  Of Covenant of Quiet Enjoyment  12.15
      • 4.  Of Covenant for Further Assurance  12.16
      • 5.  Of Covenant of Warranty  12.17
    • B.  Damages  12.18
    • C.  Parties
      • 1.  Who May Claim  12.19
      • 2.  Parties Liable  12.20
    • D.  Table: Statutes of Limitations  12.21
  • IV.  AVOIDING EFFECT OF TITLE COVENANTS
    • A.  Quitclaim Deed  12.22
    • B.  “Restrained” Grant Deed  12.23

13

Property Insurance

Timothy R. Sullivan

  • I.  SCOPE OF CHAPTER; ATTORNEY’S ROLE  13.1
  • II.  LOSS BEFORE TRANSFER OF TITLE: IS THE BUYER OR THE SELLER “ON THE RISK”?  13.2
    • A.  Liability Absent an Agreement: Uniform Vendor and Purchaser Risk Act (CC §1662)  13.3
    • B.  Material Loss Under CC §1662(a)
      • 1.  Law in Absence of Agreement  13.4
      • 2.  Form: Definition of “Material Loss”  13.5
    • C.  Who Bears Risk of Nonmaterial Loss Under CC §1662(a)
      • 1.  Law in Absence of Agreement  13.6
      • 2.  Form: Risk of Nonmaterial Loss  13.7
    • D.  Buyer’s Assumption of Risk or Agreement to Insure
      • 1.  Buyer’s Possession Before Transfer of Title  13.8
      • 2.  Form: Buyer’s Assumption of Risk  13.9
      • 3.  Form: Seller’s Assumption of Risk  13.10
      • 4.  Effect of Buyer’s Agreement to Insure  13.11
      • 5.  Negotiating Buyer’s Agreement to Insure  13.12
    • E.  Form: Code Governs Except as Expressly Agreed  13.13
    • F.  Effect of Material Loss After Breach by Buyer  13.14
  • III.  PERSONS WHO CAN INSURE THEIR INTEREST IN PROPERTY  13.15
    • A.  Insurable Interest  13.16
    • B.  Legal Title Is Not Required for an “Insurable Interest”  13.17
      • 1.  Buyer  13.18
      • 2.  Seller  13.19
      • 3.  Lessee  13.20
      • 4.  Mortgagee  13.21
      • 5.  Remainderman  13.22
    • C.  Insurable Interest Must Exist Both When the Policy Is Purchased and When the Loss Occurs  13.23
    • D.  Separate Interests Must Be Insured Separately  13.24
    • E.  Transfer of Seller’s Insurance to the Buyer  13.25
    • F.  Reformation  13.26
  • IV.  INSURING LENDERS AND MORTGAGEES
    • A.  Protecting Secured Lenders  13.27
    • B.  Loss Payable Clauses  13.28
      • 1.  Simple Loss Payable Clause  13.29
      • 2.  Standard Loss Payable Clause  13.30
    • C.  Effect of Insured’s Fraud  13.31
    • D.  Credit Bids and Full Credit Bids
      • 1.  Full Credit Bid Rule  13.32
      • 2.  Credit Bid Rule  13.33
  • V.  COMMON TYPES OF PROPERTY INSURANCE
    • A.  Noncommercial Property  13.34
      • 1.  Fire  13.35
      • 2.  Homeowners  13.36
      • 3.  Dwellings  13.37
      • 4.  Condominium Owners  13.38
    • B.  Commercial Property
      • 1.  Building and Personal Property  13.39
      • 2.  Businessowners Special Property  13.40
      • 3.  Boiler and Machinery  13.41
      • 4.  Theft, Disappearance, and Dishonesty  13.42
      • 5.  Robbery and Safe Burglary  13.43
      • 6.  Premises Burglary  13.44
    • C.  Builders’ Risk  13.45
    • D.  Pollution  13.46
    • E.  Earthquake Coverage  13.47
    • F.  Flood Insurance  13.48
    • G.  Ancillary Coverages for Commercial Risks  13.49
      • 1.  Business Interruption Coverage  13.50
      • 2.  Other Ancillary Coverages  13.51
  • VI.  HOW DO PROPERTY COVERAGES WORK?
    • A.  “Covered Property” Versus “Property Not Covered”  13.52
    • B.  Covered Causes of Loss  13.53
    • C.  Direct Physical Loss  13.54
    • D.  Exclusions  13.55
      • 1.  Exceptions  13.56
      • 2.  Burden of Proof on Insurer  13.57
    • E.  When a Loss Occurs  13.58
      • 1.  Episodic Loss  13.59
      • 2.  Continuous or Progressive Loss  13.60
        • a.  Manifestation Rule  13.61
        • b.  Fortuity  13.62
          • (1)  Requirement of Insured’s Knowledge  13.63
          • (2)  Inevitability Is Not Sole Test of Fortuity  13.64
        • c.  “Loss in Progress” Doctrine  13.65
          • (1)  Importance of Type of Insurance Policy  13.66
          • (2)  Impact of Initial Manifestation on Insurers’ Liability  13.67
      • 3.  Concurrent Causation and Efficient Proximate Cause  13.68
  • VII.  COMMON EXCLUSIONS  13.69
    • A.  Exclusions From Special Form (CP 10 30 10 12)  13.70
    • B.  Exclusions From Special Form (CP 10 30 10 12) and Broad Form (CP 10 20 10 12)  13.71
    • C.  Implied Statutory Exclusion for Willful Acts of “the Insured”  13.72
  • VIII.  WHAT TO DO WHEN A LOSS OCCURS: CONDITIONS
    • A.  Notice to Insurance Company  13.73
    • B.  Proof of Loss  13.74
    • C.  Insured’s Duty of Cooperation  13.75
    • D.  Insurer’s Duty to Produce “Claim-Related Documents”  13.76
    • E.  Examination Under Oath  13.77
    • F.  Compliance With Statute of Limitations
      • 1.  1-Year Limitations Period  13.78
      • 2.  Inception of the Loss  13.79
      • 3.  Accrual of Cause of Action for Failure to Obtain Insurance  13.80
    • G.  Insurer’s Duty to Notify Insured of Time Limitations  13.81
    • H.  Tolling  13.82
    • I.  Action “on the Policy”  13.83
    • J.  Arbitration or Appraisal  13.84
    • K.  California Residential Property Insurance Bill of Rights  13.85
  • IX.  HOW IS THE LIABILITY CALCULATED: MEASURE OF INDEMNITY  13.86
    • A.  Policy Limits
      • 1.  Amount of Coverage  13.87
        • a.  Commercial Policies  13.88
        • b.  Residential Policies  13.89
      • 2.  “Open” Versus “Valued” Policies  13.90
    • B.  Measure of Indemnity
      • 1.  Actual Cash Value  13.91
      • 2.  Replacement Cost Value  13.92
        • a.  Requirements for an Insurer’s Replacement Cost Estimate  13.92A
        • b.  Time Limits for Repair or Replacement—Commercial Property  13.93
        • c.  Procedure for Obtaining Replacement Cost  13.93A
        • d.  Time Limits for Replacement—Residential Property  13.94
      • 3.  Replacement Cost
        • a.  Basic Limited Replacement Cost  13.95
        • b.  Guaranteed Replacement Cost  13.96
        • c.  Extended Replacement Cost  13.97
    • C.  Inflation Guard  13.98
    • D.  Code-Mandated Repairs  13.99
      • 1.  Standard Form Fire Policy   13.99A
      • 2.  Ordinance or Law Exclusion  13.99B
        • a.  Authority That the Insurer Is Not Obligated to Pay  13.100
        • b.  Authority That the Insurer Is Obligated to Pay  13.101
        • c.  Insured’s Arguments for Requiring Insured to Pay  13.102
      • 3.  Insured’s Statutory Disclosure Requirements  13.103
      • 4.  Coverage Provisions in Recent ISO Commercial Property Building and Personal Property Coverage Forms  13.104
      • 5.  Optional Ordinance Or Law Endorsement  13.105
    • E.  Deductibles  13.106
    • F.  Coinsurance Clauses  13.107
    • G.  Value Reporting Clauses Regarding Inventory  13.108
  • X.  CLAIMS AGAINST THE INSURER  13.109
    • A.  Common Law Bad Faith  13.110
      • 1.  Subjective Versus Objective Bad Faith  13.111
      • 2.  Unreasonable Failure to Investigate/Unreasonable Delay in Providing Coverage  13.112
      • 3.  Damages for Bad Faith
        • a.  Damages Generally  13.113
        • b.  Emotional Distress  13.114
        • c.  Attorney Fees and Costs
          • (1)  Brandt Fees  13.115
          • (2)  Apportioning Fees Under Contingency Fee Agreements  13.116
          • (3)  Burden of Proof for Apportionment of Fees  13.117
        • d.  Consequential Economic Loss  13.118
        • e.  Punitive Damages
          • (1)  Clear and Convincing Evidentiary Standard  13.119
          • (2)  Applicability of “Clear and Convincing” Standard to Motions  13.120
          • (3)  Corporate Entities May Be Held Liable for Punitive Damages Based on the Acts or Omissions of a “Managing Agent”
            • (a)  Degree of Discretion Determines if Acting in Managerial Capacity  13.121
            • (b)  Managing Agent Under CC §3294  13.122
          • (4)  Requirement of Proof of Insurer’s Financial Condition  13.123
          • (5)  Guideposts for Constitutionality of Punitive Damages  13.124
          • (6)  Aggregate Disgorgement of Profits Theory Prohibited  13.125
          • (7)  Defendant’s “Ability to Pay”  13.126
    • B.  Defenses to Bad Faith Claims
      • 1.  Duty of Good Faith Is Mutual; No Cause of Action for “Reverse Bad Faith”  13.127
      • 2.  Genuine Dispute Doctrine  13.128
      • 3.  Advice of Counsel  13.129
      • 4.  No Cause of Action for Breach of Fiduciary Duty  13.130
    • C.  Other Common Law Tort Theories  13.131
  • XI.  STATUTORY CAUSES OF ACTION AGAINST INSURER
    • A.  Unfair Competition Claims Under Bus & P C §17200  13.132
      • 1.  Section 17200 Cause of Action  13.133
      • 2.  Standing Requirements  13.134
    • B.  Other Statutory Violations  13.135
  • XII.  EMERGING ISSUES REGARDING PROPERTY INSURANCE  13.136
    • A.  “Green Insurance”  13.137
      • 1.  “Green” Homeowners Insurance  13.138
      • 2.  ISO Commercial Property Green Endorsements  13.139
      • 3.  Potential Coverage Issues  13.140
    • B.  Chinese Drywall  13.141
    • C.  Terrorism  13.142
    • D.  Mold  13.143
    • E.  Sick-Building Syndrome  13.144

14

Liability Insurance: Selected Issues Pertinent to Sales

Timothy R. Sullivan

  • I.  INTRODUCTION
    • A.  Chapter Scope; Selecting Insurance Products  14.1
    • B.  ISO Forms Versus Manuscript Policies  14.2
    • C.  Types of Liability Insurance Pertinent to Real Property Sales
      • 1.  Commercial General Liability  14.3
      • 2.  Businessowners Liability  14.4
      • 3.  Owners and Contractors Protective  14.5
      • 4.  Architects and Engineers Professional Liability  14.6
      • 5.  Contractors Professional Liability  14.7
      • 6.  Real Estate Agent’s Errors and Omissions  14.8
      • 7.  Representations and Warranties Insurance  14.9
      • 8.  Homeowners  14.10
    • D.  Issues Arising Under Various Policies  14.11
  • II.  SPECIAL ISSUES: OCCURRENCE; CLAIMS MADE; AND CLAIMS MADE AND REPORTED POLICIES
    • A.  Occurrence Policies  14.12
    • B.  “Claims Made” Policies  14.13
    • C.  “Claims Made and Reported” Policies  14.14
    • D.  What Is a “Claim”?  14.14A
    • E.  Extended Reporting Period  14.15
    • F.  Retroactive Date  14.16
  • III.  SPECIAL ISSUES: COMMERCIAL GENERAL LIABILITY  14.17
    • A.  “Occurrence” or “Accident”  14.18
      • 1.  “Accidental” and “Negligent” Not Synonymous  14.19
        • a.  Examples of “Accidental” Conduct  14.20
        • b.  Examples of Non-“Accidental” Conduct  14.21
      • 2.  Failure to Disclose; Misrepresentations Upon Sale  14.22
      • 3.  Latent Defects  14.23
      • 4.  Negligent Construction; Negligent Design  14.24
    • B.  Property Damage; Defective or Faulty Materials  14.25
      • 1.  Damages  14.25A
      • 2.  Physical Injury to Other Property  14.26
      • 3.  No Physical Injury to Other Property  14.27
    • C.  Bodily Injury  14.28
      • 1.  Emotional Distress Without Physical Injury  14.29
      • 2.  Emotional Distress With Physical Injury  14.30
    • D.  Insured Parties  14.31
      • 1.  Named Insured; Additional Insured Distinguished  14.32
        • a.  Fictitious Names  14.33
        • b.  Partnerships  14.34
        • c.  “The Insured,” “An Insured,” or “Any Insured”  14.35
      • 2.  Additional Named Insureds  14.36
      • 3.  Additional Insureds  14.37
        • a.  Sole Negligence  14.38
        • b.  Does Duty to Defend Extend to Entire Action?  14.39
        • c.  Statutory Limits on Indemnity Provisions  14.40
          • (1)  Which Section Applies?  14.40A
          • (2)  Which Version Applies?  14.40B
          • (3)  2011 Statutory Restrictions on Indemnity Agreements  14.40C
          • (4)  Contract Provisions Requiring a Subcontractor to Procure Insurance for a Builder  14.40D
        • d.  Certificate of Insurance  14.41
        • e.  ISO Additional Insured Endorsements; Exclusions  14.42
          • (1)  “Arising Out of” Versus “Caused, in Whole or in Part, by”  14.43
          • (2)  “Ongoing Operations”  14.44
          • (3)  “Acts or Omissions”  14.45
          • (4)  Blanket Additional-Insured Endorsements  14.45A
          • (5)  The Former CG 20 09 Additional-Insured Endorsement  14.45B
          • (6)  Completed Operations Coverage for Additional Insureds  14.45C
          • (7)  Three Major Changes in ISO Additional Insured Endorsements for 2013  14.45D
            • (a)  Coverage Is Provided “Only to the Extent Permitted by Law”  14.45E
            • (b)  Coverage Provided Is “Not Broader Than” the Coverage Required by the Indemnity Contract  14.45F
            • (c)  Coverage Is Provided for No More Than the Amount Required by Contract or the Policy Limits, “Whichever Is Less”  14.45G
          • (8)  Primary and Noncontributory Endorsement  14.45H
        • f.  Manuscript Additional Insured Endorsements  14.46
    • E.  Effect of Stated Policy Period on Coverage  14.47
      • 1.  Continuous or Progressive Loss  14.48
      • 2.  Examples of Continuous and Progressive Damage  14.49
      • 3.  “Known Injury or Damage” (or “Anti-Montrose”) Provisions in Post-1998 ISO CGL Policies  14.49A
        • a.  ISO Policy Changes After Montrose II  14.49B
        • b.  Other Anti-Montrose II Provisions  14.49C
      • 4.  Number of Occurrences  14.49D
      • 5.  After-Acquired Property  14.50
    • F.  Liability Assumed by the Insured  14.51
    • G.  Duty to Defend  14.52
      • 1.  Broader Than Duty to Indemnify  14.53
      • 2.  Extends to Entire Claim  14.54
      • 3.  Extrinsic Evidence May Support Duty to Defend  14.55
      • 4.  Reimbursement of Defense Costs  14.56
    • H.  Products or Completed Operations Hazard  14.57
    • I.  Property Damage Exclusions  14.58
      • 1.  Property the Insured Owns, Rents, or Occupies  14.59
      • 2.  Alienated Premises  14.60
      • 3.  Property Loaned to Insured  14.61
      • 4.  Property Damage to Personal Property in Care, Custody, or Control of the Insured  14.62
      • 5.  Work Performed  14.63
      • 6.  Faulty Workmanship
        • a.  No Coverage for Defective Building Parts Caused by Work Incorrectly Performed  14.64
        • b.  Damage to Building Caused by Removal of Defective Materials and Faulty Workmanship Distinguished  14.65
      • 7.  Product Exclusion: Damage to Your Product  14.66
      • 8.  Work Completed Exclusion: Damage to Your Work  14.67
      • 9.  Damage to “Impaired Property”  14.68
    • J.  The “Pollution Exclusion”  14.68A
    • K.  Contractors Warranty Endorsements  14.68B
    • L.  Personal and Advertising Injury
      • 1.  Insuring Language  14.69
      • 2.  Exclusions  14.70
  • IV.  SPECIAL ISSUES: BUSINESSOWNERS LIABILITY  14.71
  • V.  SPECIAL ISSUES: REAL ESTATE AGENTS’ ERRORS AND OMISSIONS LIABILITY POLICY  14.72
    • A.  Claims Made  14.73
    • B.  Representative Insuring Clause  14.74
    • C.  Exclusions  14.75
  • VI.  SPECIAL ISSUES: REPRESENTATIONS AND WARRANTIES INSURANCE  14.76
    • A.  Representative Insuring Language  14.77
    • B.  Claims Made  14.78
    • C.  Exclusions  14.79
  • VII.  SPECIAL ISSUES: HOMEOWNERS LIABILITY
    • A.  Insuring Language  14.80
    • B.  Exclusions  14.81
      • 1.  Business  14.82
      • 2.  Professional Services  14.83
      • 3.  Noninsured Location  14.84
      • 4.  Arising Out of the Sale  14.85

15

Escrow and Closing the Sale

Peter Brian Bothel

Laura S. Lowe

  • I.  WHAT IS AN ESCROW?
    • A.  Definition  15.1
      • 1.  Who Can Be an Escrow Holder?  15.2
      • 2.  Who Regulates Escrow?  15.3
        • a.  Independent Escrow Companies  15.4
        • b.  Internet Escrow Agents  15.5
        • c.  Parties Exempt From Escrow Law  15.6
    • B.  How Is an Escrow Created?  15.7
    • C.  Northern California Versus Southern California Distinctions  15.8
  • II.  PARTIES TO ESCROW  15.9
    • A.  Escrow Officers  15.10
    • B.  Buyers and Sellers  15.11
    • C.  Attorneys  15.12
    • D.  Lenders  15.13
    • E.  Brokers  15.14
    • F.  Title Insurer  15.15
  • III.  FUNCTIONS OF ESCROW HOLDER
    • A.  Generally  15.16
    • B.  Residential and Commercial Transactions  15.17
  • IV.  ESCROW HOLDER’S DUTIES
    • A.  Limited Agency  15.18
    • B.  Fiduciary Responsibilities  15.19
    • C.  Disclosures to Parties  15.20
    • D.  Duty to Disclose Fraud  15.21
  • V.  LIABILITY OF ESCROW HOLDER
    • A.  Liability to Parties to Escrow  15.22
    • B.  Liability to Nonparties  15.23
    • C.  Accommodation Recordings  15.24
    • D.  Escheat  15.25
  • VI.  DEPOSIT INTO ESCROW AND ITS CONSEQUENCES
    • A.  Conditional Delivery  15.26
    • B.  Effect on Title and Possession
      • 1.  Before Conditions Are Satisfied  15.27
      • 2.  After Conditions Are Satisfied  15.28
      • 3.  Waiver of Conditions  15.29
  • VII.  THIRD PARTY DEMANDS  15.30
  • VIII.  ESCROW INSTRUCTIONS
    • A.  General Provisions  15.31
    • B.  California Association of Realtors® Contract  15.32
    • C.  Preparation of Escrow Instructions  15.33
      • 1.  Property Description  15.34
      • 2.  Deposit of Funds
        • a.  Good Funds Law  15.35
        • b.  Right of Escrow Holder to Commingle Funds  15.36
        • c.  Interest on Deposits  15.37
      • 3.  Drafting Documents  15.38
      • 4.  Leases and Intangibles  15.39
      • 5.  Title Insurance  15.40
      • 6.  Executing and Delivering Documents  15.41
      • 7.  Closing; Closing Costs  15.42
      • 8.  Prorations  15.43
        • a.  Real Property Taxes and Assessments  15.44
        • b.  Insurance Premiums  15.45
        • c.  Rent  15.46
      • 9.  Recordation; Priority  15.47
  • IX.  SUPPLEMENTAL ESCROW INSTRUCTIONS  15.48
    • A.  Buyer’s Supplemental Escrow Instructions  15.49
      • 1.  Form: Introduction  15.50
      • 2.  Form: Deposits by Buyer  15.51
      • 3.  Form: Conditions Precedent to Close of Escrow  15.52
      • 4.  Form: Title Insurance Requirements  15.53
      • 5.  Form: Estimated Closing Statement  15.54
      • 6.  Form: Procedure for Closing  15.55
      • 7.  Form: Time for Closing Escrow; Investment of Funds  15.56
      • 8.  Form: Prorations  15.57
      • 9.  Form: Authorized Disbursements; Costs  15.58
      • 10.  Form: Right to Withdraw Documents or Funds  15.59
      • 11.  Form: Document Approval  15.60
      • 12.  Form: Acknowledgment by Escrow Holder  15.61
    • B.  Seller’s Supplemental Escrow Instructions  15.62
      • 1.  Form: Introduction  15.63
      • 2.  Form: Deposits by Seller  15.64
      • 3.  Form: Conditions Precedent to Close of Escrow  15.65
      • 4.  Form: Procedure for Closing  15.66
      • 5.  Form: Time for Closing Escrow  15.67
      • 6.  Form: Prorations; Costs  15.68
      • 7.  Form: Authorized Disbursements; Costs  15.69
      • 8.  Form: Payment of Broker’s Commission  15.70
      • 9.  Form: Right to Withdraw Documents or Funds  15.71
      • 10.  Form: Document Approval  15.72
      • 11.  Form: Acknowledgment by Escrow Holder  15.73
    • C.  Lender’s Instructions  15.74
  • X.  TAX ISSUES
    • A.  California Withholding
      • 1.  Withholding Requirements  15.75
      • 2.  Individual Exemptions to Withholding Requirements  15.76
      • 3.  Nonindividual Exemptions to Withholding Requirements  15.77
      • 4.  No Waiver for Individuals  15.78
      • 5.  Buyer’s Obligations; Penalties  15.79
    • B.  FIRPTA
      • 1.  Withholding Requirements  15.80
      • 2.  Exemptions to Withholding Requirements  15.81
      • 3.  Form: Certification of Nonforeign Status by Corporation, Partnership, Trust or Estate  15.82
      • 4.  Withholding Certificate  15.83
      • 5.  Buyer’s Obligations; Penalties  15.84
  • XI.  CLOSING THE DEAL
    • A.  Why Record?  15.85
    • B.  Effect of Recording  15.86
    • C.  Defects or Exceptions to Constructive Notice  15.87
    • D.  Procedures for Recording
      • 1.  Form of Instrument  15.88
      • 2.  Acknowledgments  15.89
      • 3.  Place of Recording  15.90
      • 4.  Recorder’s Procedure  15.91
      • 5.  Timing of Recording  15.92
    • E.  Processing Documents; Disbursing Funds  15.93
    • F.  Real Estate Commissions  15.94
    • G.  Real Estate Settlement Procedures Act (RESPA) and TILA-RESPA Integrated Disclosures (TRID)  15.95
    • H.  Holdbacks  15.96
  • XII.  FAILED TRANSACTIONS
    • A.  Cancellation of Escrow  15.97
    • B.  Interpleader  15.98
  • XIII.  PRELIMINARY CHANGE OF OWNERSHIP REPORT  15.99

Selected Developments

March 2018 Update

This update includes discussion and analysis of recent CEQA cases, and addresses the most significant statutory and regulatory changes since the previous update was published. The most significant developments and improvements in this book since the last update are the following:

2017 Legislation

In 2017, the legislature enacted a package of bills designed to respond to the housing crisis, with relatively few CEQA provisions. The legislature also enacted a few minor CEQA provisions (see §1.26F). The bills are summarized below:

  • Assembly Bill 246 (Stats 2017, ch 522) extended the provisions of AB 900 (Stats 2011, ch 354) for expedited review of environmental leadership development projects through 2021.

  • Pub Res C §§21180–21186. See §§10.59–10.61. Assembly Bill 1218 (Stats 2017, ch 147) extended the statutory exemption for bicycle lane restriping through 2021. Pub Res C §§21080.20, 21080.20.5.

  • Senate Bill 35 (Stats 2017, ch 366) establishes a ministerial process for review of multifamily projects in areas that have not met regional housing needs, if the project meets long list of other requirements. Govt C §65913.4. See §§1.26F, 20.114.

  • Assembly Bill 73 (Stats 2017, ch 371) authorizes the approval of housing sustainability districts following certification of an EIR, with future approvals then to be issued based on that EIR. Govt C §§66200–66210. The bill also requires lead agencies to prepare an EIR when designating a housing sustainability district, and exempts from CEQA housing projects undertaken in housing sustainability districts that meet certain requirements. Pub Res C §§21155.10–21155.11.

Late 2016 through late 2017 Cases

Supreme Court Decisions

In Banning Ranch Conservancy v City of Newport Beach (2017) 2 C5th 918, the supreme court held that the EIR was legally inadequate because it failed to include an analysis of whether lands within the project site would potentially qualify as environmentally sensitive habitat areas under the Coastal Act. See §§1.23, 8.5, 11.2, 11.22, 11.43, 15.8, 16.7, 16.11, 23.36.

In Cleveland Nat’l Forest Found. v San Diego Ass’n of Gov’ts (2017) 3 C5th 497, the supreme court held that the EIR for a regional transportation plan was not required to provide an analysis of consistency of greenhouse gas emissions projected for 2050 with 2050 goals set in Governor Schwarzenegger’s 2005 executive order on greenhouse gas emissions. See §§1.23, 11.2, 11.22, 11.28, 11.34, 13.26, 13.28, 16.7, 16.11, 23.33, 23.114.

In Friends of the Eel River v North Coast R.R. Auth. (2017) 3 C5th 677, the supreme court held that application of CEQA to a railroad project undertaken by a state public entity together with a private entity is not preempted as regulation of rail transportation under the federal ICC Termination Act of 1995, but that CEQA cannot provide the basis for an injunction against the private rail operator’s freight operations. See §§1.23, 3.50, 20.154.

On December 22, 2017, the North Coast Railroad Authority filed a petition for writ of certiorari in Friends of the Eel River (SCOTUS No. 17–915).

Overview of CEQA Process (chap 1)

The decision in East Sacramento Partnerships for a Livable City v City of Sacramento (2016) 5 CA5th 281 joins a now well-established line of cases holding that CEQA is limited to analysis of impacts of a proposed project on the environment and does not require analysis of impacts of the existing environment on the proposed project. See §§1.23, 4.22, 11.35.

The glossary of CEQA terms set forth in §1.36 has been revised and updated to reflect the most current usage in CEQA practice.

Attorneys Role in CEQA Process (chap 2)

In Consolidated Irrig. Dist. v Superior Court (2012) 205 CA4th 697, 710, the court ruled that documents held by a consultant can be treated as being in the agency’s possession for purposes of the Public Records Act if the agency is deemed to have constructive possession of them. See §2.42.

Role of Public Agencies in CEQA Process (chap 3)

In Friends of Outlet Creek v Mendocino County Air Quality Mgmt. Dist. (2017) 11 CA5th 1235, 1243, the court held that a lawsuit brought against a responsible agency is limited to the actions that the responsible agency takes in approving the project, and does not extend to actions by the lead agency, or to the adequacy of the lead agency’s CEQA review of the project. See §3.23.

The decision in Friends of the Eel River v North Coast R.R. Auth. (2017) 3 C5th 677, 712, confirmed the general rule that a lead agency’s functions under CEQA are sufficiently important that they may not be delegated to another agency. See §3.50. NOTE: On December 22, 2017, the North Coast Railroad Authority filed a petition for writ of certiorari in Friends of the Eel River (SCOTUS No. 17–915).

Is the Activity a Project? (chap 4)

In Residents Against Specific Plan 380 v County of Riverside (2017) 9 CA5th 941, 960, the board of supervisors’ tentative approval of an EIR and a specific plan, subject to preparation of the documents necessary for final action, did not constitute approval of the project for CEQA purposes. See §§4.15, 11.38.

Similarly, in Bridges v Mt. San Jacinto Community College Dist. (2017) 14 CA5th 104, 121, a land acquisition agreement that conditioned the opening of escrow on CEQA compliance and that did not commit the college district to any type of construction plan did not amount to approval of a project under CEQA. See §4.15.

In Aptos Council v County of Santa Cruz (2017) 10 CA5th 266, 281, the court held that activities that will operate independently of each other and can be implemented separately may be treated as separate projects under CEQA if one activity is not a foreseeable consequence of the other. See §4.19.

The court in Sierra Club v County of Sonoma (2017) 11 CA5th 11, 22, ruled that the ability to exercise some discretion in acting on a project is irrelevant unless that discretion would allow the agency to require the activity’s environmental impacts to be mitigated. The court also held that a determination whether issuance of a permit is ministerial or discretionary ordinarily must be based on the specific regulations that are relevant to the agency’s determination whether to approve the proposed project. See §§4.26–4.27, 4.30, 5.8–5.9.

Is the Project Exempt? (chap 5)

Effective January 1, 2018, under a new statutory exemption (Pub Res C §21080.30), CEQA does not apply to any action, approval, or authorization by the State Public Works Board or the Department of Finance regarding any bond issuance, capital outlay project, or real estate transaction. See §§5.7, 5.41.

Initial Study (chap 6)

In Mission Bay Alliance v Office of Community Inv. & Infrastructure (2016) 6 CA5th 160, 172 n12, the court noted that the environmental checklist form in CEQA Guidelines Appendix G can be tailored to cover environmental issues specific to a particular project. See §6.14.

In Aptos Council v County of Santa Cruz (2017) 10 CA5th 266, 293, a negative declaration evaluating changes in county ordinances governing hotel development was not required to evaluate potential development of larger hotels, because such development was speculative and not reasonably foreseeable. The court also ruled that the county’s approval of several revisions to its zoning ordinances was not a single project because the ordinances serve different purposes, operate independently of one another, and can be implemented separately. See §§6.31, 6.33, 6.39, 6.75–6.76, 6.80, 10.20.

Determining Scope and Contents of EIR (chap 8)

In Banning Ranch Conservancy v City of Newport Beach (2017) 2 C5th 918, 936, the court held that the directive under Pub Res C §21003(a) and the CEQA Guidelines—to integrate CEQA review with the project planning, consultation, and approval processes used by each public agency—is a “fundamental policy” of CEQA. See §§8.5, 8.8.

CEQA Streamling and Special EIR Processes (chap 10)

In Mission Bay Alliance v Office of Community Inv. & Infrastructure (2016) 6 CA5th 160, the court held that program EIRs may examine the program as a whole at a programmatic level of detail, while also examining some activities within the program at a project-specific level of detail. The court also ruled that the substantial evidence standard of review applies to an agency determination that certain impacts of a proposed activity are adequately covered by a program EIR and need not be reevaluated in a later EIR prepared to address the activity’s other impacts. See §§10.14, 10.16, 10.18, 10.21, 10.40, 10.59.

Substantive Requirements for EIRs (chap 11)

The supreme court in Cleveland Nat’l Forest Found. v San Diego Ass’n of Gov’ts (2017) 3 C5th 497, 515, stated that the description of adverse environmental impacts in an EIR is “necessary to inform the critical discussions of mitigation measures and project alternatives” that are at the core of an EIR. See §11.34.

In Mission Bay Alliance v Office of Community Inv. & Infrastructure (2016) 6 CA5th 160, the court applied the substantial evidence test when the following issues relating to the adequacy of an EIR were involved: (1) the methodology or criteria for assessing an environmental impact (6 CA5th at 205); (2) the sufficiency of the scope of technical studies supporting an EIR, such as a health-risk assessment for toxic air contaminants (6 CA5th at 205); (3) the effectiveness of mitigation measures (6 CA5th at 199); (4) whether a project is consistent with a local greenhouse gas (GHG) reduction strategy and thus will not have a significant environmental impact due to GHG emissions (6 CA5th at 203); and (5) whether a project consistent with a prior program EIR presents a new significant impact not previously studied (6 CA5th at 174). See §11.39.

In Cleveland Nat’l Forest Found. v San Diego Ass'n of Gov’ts (2017) 3 C5th 497, 516, the supreme court held that responses to EIR comments can directly bolster an EIR’s analysis of impacts. The court described responses to comments as “an integral part of the EIR” and held there was no legal infirmity in the fact that part of an EIR’s analysis of impacts was contained in the responses to comments. See §11.43.

In Banning Ranch Conservancy v City of Newport Beach (2017) 2 C5th 918, 940, the supreme court noted that adequate responses to comments on the draft EIR are of particular importance when significant environmental issues are raised in comments submitted by experts or by regulatory agencies with specialized expertise. See §11.43.

Project Description, Setting, and Baseline (chap 12)

In Mission Bay Alliance v Office of Community Inv. & Infrastructure (2016) 6 CA5th 160, 185, the court held that mischaracterization of a mitigation measure as a project component amounts to a material error only if it obstructs or obscures analysis of the project’s environmental impacts and potential mitigation measures. See §12.7.

In East Sacramento Partnership for a Livable City v City of Sacramento (2016) 5 CA5th 281, 293, the court held that a lead agency may not split a single large project into smaller ones resulting in piecemeal environmental review that fails to consider the environmental consequences of the entire project. Under the facts of that case, a proposed tunnel that would provide additional access to the project was not a necessary part of the project; the project was not conditioned on the tunnel’s construction; and the tunnel was deemed infeasible at the time the project was approved. The East Sacramento court also ruled that references to the development agreement in final EIR and in public meeting notices were sufficient to alert interested persons to its relevance; analysis of the development agreement in the EIR was not required. See §§12.8, 12.10–12.11, 12.15, 12.33.

The court in Poet, LLC v State Air Resources Bd. (2017) 12 CA5th 52 ruled that the test for determining which activities to include in, or exclude from, the project description includes whether they are closely related to the overall objective of the project or are part of a coordinated endeavor. See §§12.10, 12.20, 21.13, 23.37.

Significant Environmental Effects (chap 13)

In Mission Bay Alliance v Office of Community Inv. and Infrastructure (2016) 6 CA5th 160, 197, the court rejected claims that an EIR was required to evaluate the extent to which patrons of a proposed project would be exposed to existing windy conditions. The court also held that selection of a threshold of significance “requires an exercise of reasoned judgment” founded on substantial evidence (6 CA5th at 206). See §§13.5, 13.8, 13.11, 13.13, 13.15, 13.60, 13.66, 13.66D.

The supreme court in Cleveland Nat’l Forest Found. v San Diego Ass’n of Gov’ts (2017) 3 C5th 497, 515, confirmed that a lead agency’s choice of appropriate thresholds of significance must be “based to the extent possible on scientific and factual data,” citing 14 Cal Code Regs §15064(b). See §§13.8, 13.26, 13.28, 13.66.

In East Sacramento Partnership for a Livable City v City of Sacramento (2016) 5 CA5th 281, the court rejected claims that an EIR was required to evaluate existing health hazards in the area of an infill development site. The court upheld the scope of a traffic impact analysis that focused on impacts to intersections rather than roadway segments, but rejected the use of a general plan level of service standard to determine the significance of impacts at intersections, in part because the lead agency was inconsistently applying those standards in determining significance. The court also ruled that when there is evidence an impact might be significant, an EIR may not adopt a contrary finding without providing an adequate explanation along with supporting evidence. See §§13.5, 13.8, 13.11, 13.66D.

In Banning Ranch Conservancy v City of Newport Beach (2017) 2 C5th 918, 941, the supreme court held that, for a project located in the coastal zone, an EIR must evaluate as part of its analysis any areas that might qualify as environmentally sensitive habitat areas under the Coastal Act. See §13.61.

Mitigation Measures (chap 14)

In Mission Bay Alliance v Office of Community Inv.& Infrastructure (2016) 6 CA5th 160, 187, 190, the court held that CEQA does not require that a guaranteed source of funding for mitigation measures be identified; an agency’s determination—that funding sufficient to implement a mitigation plan will be available—will be upheld if supported by substantial evidence. See §§14.9, 14.12–14.13.

In Residents Against Specific Plan 380 v County of Riverside (2017) 9 CA5th 941, the court upheld the agency’s use of a performance standard, rather than prescriptive mitigation measures, to allow implementation of mitigation to be tailored to fit the final project design and then-available technology. See §§14.10, 14.12.

Project Alternatives (chap 15)

In Banning Ranch Conservancy v City of Newport Beach (2017) 2 C5th 918, the court found legally inadequate an EIR that failed to identify areas on project site that might qualify as environmentally sensitive habitat areas under the Coastal Act, and to take those areas into consideration in its analysis of alternatives and mitigation measures. See §15.8.

Final EIRs (chap 16)

In Residents Against Specific Plan 380 v County of Riverside (2017) 9 CA5th 941, 964, the court ruled that changes to the allocation and arrangement of uses within the specific plan, without changing the nature of the uses or footprint of the plan, did not result in new or substantially more severe impacts. See §§16.12, 16.15B, 16.15F, 23.22.

Project Approvals and Findings (chap 17)

In Residents Against Specific Plan 380 v County of Riverside (2017) 9 CA5th 941, 963, the court rejected claims that errors in the notice of determination’s project description warranted unwinding the agency’s approval of the project. See §17.46.

Subsequent and Supplemental EIRs (chap 19)

In Friends of the College of San Mateo Gardens v San Mateo County Community College Dist. (2017) 11 CA5th 596, 611, the court held that an agency may adopt a subsequent mitigated negative declaration when a subsequent EIR would otherwise be required but the project’s new significant impacts can be significantly reduced or avoided by adopting appropriate mitigation measures. See §19.7.

On remand from the supreme court’s decision in Friends of the College of San Mateo Gardens v San Mateo County Community College Dist. (2016) 1 C5th 937, the court of appeal ruled that an EIR must be prepared whenever the record contains substantial evidence sufficient to support a fair argument that a significant environmental impact not previously considered might occur. Friends of the College of San Mateo Gardens v San Mateo County Community College Dist. (2017) 11 CA5th 596, 607. The court of appeal also held that an agency may adopt a subsequent mitigated negative declaration to address new significant impacts that were not covered by prior mitigated negative declaration adopted for the project. For detailed analysis of the two Friends of the College decisions, see §§19.34, 19.40, 19.43, 19.55.

Relationship Between CEQA and Other Statutes and Programs (chap 20)

In Banning Ranch Conservancy v City of Newport Beach (2017) 2 C5th 918, the supreme court held that an EIR on a proposed project in the coastal zone was required to identify areas that might be designated by the Coastal Commission as environmentally sensitive habitat areas under the Coastal Act. Further, the court ruled that a discussion of potential environmentally sensitive habitat areas on such a project site was essential to an adequate analysis of feasible project alternatives and mitigation measures (2 C5th at 937). See §20.18.

Adding to the growing body of CEQA case law on the evaluation of climate change impacts are Cleveland Nat’l Forest Found. v San Diego Ass’n of Gov’ts (2017) 3 C5th 497 (EIR for regional transportation plan not required to use state climate goals from Governor’s Executive Orders as CEQA thresholds of significance) and Mission Bay Alliance v Office of Community Inv. & Infrastructure (2016) 6 CA5th 160 (EIR analysis based on consistency with adopted greenhouse gas emissions reduction plan was sufficient; quantified analysis of emissions not required in addition to such consistency evaluation). For detailed discussion of these cases, see §§20.81–20.81D, 20.83–20.83A, 20.86–20.86A, 20.88A.

In November 2017, the Bay Area Air Quality Management District adopted Regulation 11–18, Reduction of Risk from Air Toxic Emissions at Existing Facilities, “considered to be the most health-protective toxic air pollution risk control measure in the nation.” See §20.81A.

CARB is now proceeding to consider a second Scoping Plan update, which will reflect the 2030 mid-term emissions reduction target set by SB 32 (Stats 2016, ch 249). (The Scoping Plan sets forth various regulatory and market-based measures to reduce GHG emissions, including a cap-and-trade market-based system for reducing emissions from existing utility and large industrial sources.) The cap-and-trade rules were upheld in California Chamber of Commerce v State Air Resources Bd. (2017) 10 CA5th 604. See §20.81C.

A new section has been added to chapter 20 on how a lead agency should determine the appropriate time horizon for analysis of the impacts of a project’s greenhouse gas emissions. See §20.83A.

CEQA Litigation (chap 23)

In Friends of Outlet Creek v Mendocino County Air Quality Mgmt. Dist. (2017) 11 CA5th 1235, 1243, the court held that relief in a case brought against a responsible agency is limited to that agency’s acts and cannot extend to decisions or actions by the lead agency. See §23.15.

In Banning Ranch Conservancy v City of Newport Beach (2017) 2 C5th 918, 935, the supreme court held that the question whether an EIR has omitted essential information required by CEQA to be included is a legal issue subject to de novo review. In Banning Ranch, the omission of information from an EIR relating to the potential effect of Coastal Commission environmental review procedures and requirements was prejudicial because it skewed the evaluation of alternatives and mitigation measures and precluded a full understanding of the environmental issues posed by the project. See §§23.35, 23.37.

In Residents Against Specific Plan 380 v County of Riverside (2017) 9 CA5th 941, 964, the court ruled that errors in the notice of determination were not prejudicial because the suit was filed before the statute of limitations had run. See §23.37.

In Friends of Outlet Creek v Mendocino County Air Quality Mgmt. Dist. (2017) 11 CA5th 1235, 1244, the court ruled that if an agency is required by law to hold an evidentiary hearing and to make its factual determinations based on the administrative record, its findings and decision are reviewed under CCP §1094.5. See §23.42.

In The Urban Wildlands Group, Inc. v City of Los Angeles (2017) 10 CA5th 993, 996, the court held that a judgment denying a mandamus petition on the basis of the petitioner’s failure to lodge the record with the court is not a default judgment or dismissal subject to mandatory relief under CCP §473(b). See §23.75.

In East Sacramento Partnership for a Livable City v City of Sacramento (2016) 5 CA5th 281, 303, the court of appeal remanded the case for issuance of a writ of mandate, instructing that the city need only correct the EIR deficiency that the court had identified before recertifying the EIR. See §23.125.

In Friends of the College of San Mateo Gardens v San Mateo County Community College Dist. (2017) 11 CA5th 596, 611, the court rejected the district’s approval of project modifications on the basis of an addendum to a prior negative declaration for the project, but ruled that the district could elect to adopt a subsequent mitigated negative declaration, rather than preparing an EIR, if it determined that the impacts of the modifications could be reduced to insignificance by implementing appropriate mitigation measures. See §23.125.

In Poet, LLC v State Air Resources Bd. (2017) 12 CA5th 52, 85, the court ruled that if an appellate court determines a lower court order discharging a writ of mandate was granted in error the appellate court has authority to reverse the order, direct compliance with the writ, and issue further appropriate orders to compel compliance. See §23.125A.

In Save Our Heritage Organisation v City of San Diego (2017) 11 CA5th 154, the court held that, although a project proponent may obtain an attorney fee award under the private attorney general statute (CCP §1021.5) if it satisfies the statutory requirements, an award against the petitioner in this case would be improper because the litigation did not seek to curtail or compromise public rights but, rather, to enforce them. See §23.135.

About the Authors

STEPHEN L. KOSTKA was a partner with the law firm of Bingham McCutchen, LLP, in San Francisco when he co-authored the first and second editions of this book. He is currently of counsel with the law firm of Perkins Coie, LLP, in San Francisco, in the firm’s Environment, Energy & Resources practice group. Mr. Kostka specializes in land use and environmental litigation and counseling, representing public agencies and private developers. He regularly teaches courses in CEQA compliance and CEQA litigation for professional, public agency, and industry groups. Mr. Kostka has served for a number of years as a legal advisor to the Governor’s Office of Planning and Research on revisions to the CEQA Guidelines. Mr. Kostka received his B.A. degree in 1970 from the University of California, Santa Barbara, and his J.D. degree in 1973 from the University of California, Berkeley, School of Law.

MICHAEL H. ZISCHKE is a partner with the law firm of Cox, Castle & Nicholson LLP, in San Francisco, where he is co-chair of the Land Use and Natural Resources Practice Team. Before joining Cox, Castle & Nicholson, Mr. Zischke co-chaired the land use and environmental law practice group at Morrison & Foerster, LLP, and previously chaired the CEQA and land use group at Landels, Ripley & Diamond. Mr. Zischke specializes in CEQA and land use litigation and compliance, representing businesses and public agencies. He regularly teaches CEQA and land use courses for various law schools and professional and industry groups. He has actively participated in task forces on CEQA legislation and revisions of the CEQA Guidelines. Mr. Zischke received his B.A. degree in 1977 from Dartmouth College and his J.D. degree in 1982 from the University of California, Berkeley, School of Law.

About the 2018 Update Authors

STEPHEN L. KOSTKA. See biography in the About the Authors section. Mr. Kostka gratefully acknowledges the following Perkins Coie partners who offered suggestions for the 2018 update: Barbara J. Schussman, Julie Jones, and Geoffrey L. Robinson.

MICHAEL H. ZISCHKE. See biography in the About the Authors section. Mr. Zischke gratefully acknowledges the following attorneys who offered comments and suggestions for the 2018 update: Robert P. Doty, Andrew K. Fogg, Linda C. Klein, James M. Purvis, and Andrew B. Sabey (Cox, Castle & Nicholson LLP); Nick Cammarota (General Counsel, California Building Industry Association); Ricia R. Hager (Woodruff, Spradlin & Smart); Jennifer Hernandez (Holland & Knight LLP); Christian L. Marsh (Downey Brand LLP); and Margaret M. Sohagi (The Sohagi Law Group, PLC). Mr. Zischke also thanks his assistant, Rosa Keel, and the Cox, Castle & Nicholson librarian, Janet Kasabian, for their help.

OnLAW System Requirements:
Desktop: Windows XP, 7 or 8, Mac OS 10.8
Mobile: iOS6, iOS7, Android 4.2
Firefox, Chrome, IE and Safari browsers

Note: OnLAW may work with some devices running older versions of these Operating Systems or Windows RT; however, functionality is not guaranteed.

Please see FAQs for more details.
Products specifications
PRACTICE AREA Public Law
PRODUCT GROUP Publication
PRACTICE AREA Real Property
Products specifications
PRACTICE AREA Public Law
PRODUCT GROUP Publication
PRACTICE AREA Real Property