Marketable Record TitleAncient Mortgages and Deeds of Trust

Section § 882.020

Explanation

This law section explains when a lien, which is a legal claim on property used as security for a debt, on real estate expires. Generally, a lien expires 10 years after the final maturity date or payment date if those dates are clear from the records. If they aren't clear, the lien expires 60 years after the lien was originally recorded. However, if a notice to preserve the lien is recorded, it extends the lien by 10 years from that notice. The law also mentions that a power of sale begins when a related deed is recorded. Extensions to these time limits are possible but must be recorded before the original expiration.

(a)CA Civil Law Code § 882.020(a) Unless the lien of a mortgage, deed of trust, or other instrument that creates a security interest of record in real property to secure a debt or other obligation has earlier expired pursuant to Section 2911, the lien expires at, and is not enforceable by action for foreclosure commenced, power of sale exercised, or any other means asserted after, the later of the following times:
(1)CA Civil Law Code § 882.020(a)(1) If the final maturity date or the last date fixed for payment of the debt or performance of the obligation is ascertainable from the recorded evidence of indebtedness, 10 years after that date.
(2)CA Civil Law Code § 882.020(a)(2) If the final maturity date or the last date fixed for payment of the debt or performance of the obligation is not ascertainable from the recorded evidence of indebtedness, or if there is no final maturity date or last date fixed for payment of the debt or performance of the obligation, 60 years after the date the instrument that created the security interest was recorded.
(3)CA Civil Law Code § 882.020(a)(3) If a notice of intent to preserve the security interest is recorded within the time prescribed in paragraph (1) or (2), 10 years after the date the notice is recorded.
(b)CA Civil Law Code § 882.020(b) For the purpose of this section, a power of sale is deemed to be exercised upon recordation of the deed executed pursuant to the power of sale.
(c)CA Civil Law Code § 882.020(c) The times prescribed in this section may be extended in the same manner and to the same extent as a waiver made pursuant to Section 360.5 of the Code of Civil Procedure, except that an instrument is effective to extend the prescribed times only if it is recorded before expiration of the prescribed times.
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Section § 882.030

Explanation

This law states that when the time limit for a mortgage or similar security interest expires, the lien is automatically considered gone, and you can't enforce it anymore. You don't need any paperwork to show that it's ended, but you can still file a document stating it's over if you want to.

Expiration of the lien of a mortgage, deed of trust, or other security interest pursuant to this chapter or any other statute renders the lien unenforceable by any means commenced or asserted thereafter and is equivalent for all purposes to a certificate of satisfaction, reconveyance, release, or other discharge of the security interest, and execution and recording of a certificate of satisfaction, reconveyance, release, or other discharge is not necessary to terminate or evidence the termination of the security interest. Nothing in this section precludes execution and recording at any time of a certificate of satisfaction, reconveyance, release, or other discharge.
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Section § 882.040

Explanation

This law says that all security interests in real estate, like mortgages and deeds of trust, are covered by this chapter from its start date. It doesn’t matter when they were created—whether before, on, or after that start date. However, it ensures that these liens won't become invalid or unenforceable until at least five years after this chapter starts being used.

(a)CA Civil Law Code § 882.040(a) Subject to Section 880.370 (grace period for recording notice) and except as otherwise provided in this section, this chapter applies on the operative date to all mortgages, deeds of trust, and other instruments that create a security interest in real property to secure a debt or other obligation, whether executed or recorded before, on, or after the operative date.
(b)CA Civil Law Code § 882.040(b) This chapter shall not cause the lien of a mortgage, deed of trust, or other security interest in real property to expire or become unenforceable before the passage of five years after the operative date of this chapter.
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