Bill Text: CA SB284 | 2011-2012 | Regular Session | Chaptered

California Senate Bill 284 (Prior Session Legislation)

Bill Title: Real property: marketable title.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2011-07-01 - Chaptered by Secretary of State. Chapter 46, Statutes of 2011. [SB284 Detail]

Download: California-2011-SB284-Chaptered.html

BILL NUMBER: SB 284	CHAPTERED
	BILL TEXT

	CHAPTER  46
	FILED WITH SECRETARY OF STATE  JULY 1, 2011
	APPROVED BY GOVERNOR  JUNE 29, 2011
	PASSED THE SENATE  APRIL 7, 2011
	PASSED THE ASSEMBLY  JUNE 20, 2011
	AMENDED IN SENATE  APRIL 5, 2011

INTRODUCED BY   Senator Harman

                        FEBRUARY 14, 2011

   An act to amend Section 880.020 of, and to amend, repeal, and add
Section 884.010 of, the Civil Code, relating to real property.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 284, Harman. Real property: marketable title.
   Existing law permits a person to record an option to purchase real
property in the chain of title for that property. Existing law
provides that the option expires of record, within specified times,
if no conveyance, contract, or other instrument giving notice of the
exercise or extension of the option is recorded.
   This bill would provide, absent a conveyance, contract, or other
instrument giving notice of the exercise or extension of an option,
that if the expiration date of the option is ascertainable from the
recorded instrument, the option expires 6 months after that
expiration date. The bill would further provide that if the
expiration date of the option is not ascertainable from the recorded
instrument, or the recorded instrument indicates that the option
provides no expiration date, the option expires 6 months after the
date the instrument that creates or gives constructive notice of the
option is recorded. These provisions would become operative on
January 1, 2013. The bill would also make a technical correction.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 880.020 of the Civil Code is amended to read:
   880.020.  (a) The Legislature declares as public policy that:
   (1) Real property is a basic resource of the people of the state
and should be made freely alienable and marketable to the extent
practicable in order to enable and encourage full use and development
of the real property, including both surface and subsurface
interests.
   (2) Interests in real property and defects in titles created at
remote times, whether or not of record, often constitute unreasonable
restraints on alienation and marketability of real property because
the interests are no longer valid or have been abandoned or have
otherwise become obsolete.
   (3) Such interests and defects produce litigation to clear and
quiet titles, cause delays in real property title transactions, and
hinder marketability of real property.
   (4) Real property title transactions should be possible with
economy and expediency. The status and security of recorded real
property titles should be determinable to the extent practicable from
an examination of recent records only.
   (b) It is the purpose of the Legislature in enacting this title to
simplify and facilitate real property title transactions in
furtherance of public policy by enabling persons to rely on record
title to the extent provided in this title, with respect to the
property interests specified in this title, subject only to the
limitations expressly provided in this title and notwithstanding any
provision or implication to the contrary in any other statute or in
the common law. This title shall be liberally construed to effect the
legislative purpose.
  SEC. 2.  Section 884.010 of the Civil Code is amended to read:
   884.010.  (a) If a recorded instrument creates or gives
constructive notice of an option to purchase real property, the
option expires of record if no conveyance, contract, or other
instrument that gives notice of exercise or extends the option is
recorded within the following times:
   (1) Six months after the option expires according to its terms.
   (2) If the option provides no expiration date, six months after
the date the instrument that creates or gives constructive notice of
the option is recorded.
   (b) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
  SEC. 3.  Section 884.010 is added to the Civil Code, to read:
   884.010.  If a recorded instrument creates or gives constructive
notice of an option to purchase real property, the option expires of
record if no conveyance, contract, or other instrument that gives
notice of exercise or extends the option is recorded within the
following times:
   (a) If the expiration date of the option is ascertainable from the
recorded instrument, six months after that expiration date.
   (b) If the expiration date of the option is not ascertainable from
the recorded instrument or the recorded instrument indicates that
the option provides no expiration date, six months after the date the
instrument that creates or gives constructive notice of the option
is recorded.
   (c) This section shall become operative on January 1, 2013.