Marketable Record TitleUnexercised Options

Section § 884.010

Explanation

This law says that if there's a formal document showing someone has the right (or option) to buy property, that right will expire from the record if not acted upon. The expiration depends on when and how details are recorded: if an expiration date is clear, the option expires six months after that date. If there's no clear expiration date in the document, it expires six months after the document was first recorded. This rule has been in effect since January 1, 2013.

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)CA Civil Law Code § 884.010(a) If the expiration date of the option is ascertainable from the recorded instrument, six months after that expiration date.
(b)CA Civil Law Code § 884.010(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)CA Civil Law Code § 884.010(c) This section shall become operative on January 1, 2013.
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Section § 884.020

Explanation

This law says that when the official record of an option to buy property expires, it no longer informs anyone about the option or any related agreements. Basically, once the option's record period ends, it's like the option never existed, as far as public notice goes.

Upon the expiration of record of an option to purchase real property, the recorded instrument that creates or gives constructive notice of the option ceases to be notice to any person or to put any person on inquiry with respect to the exercise or existence of the option or of any contract, conveyance, or other writing that may have been executed pursuant to the option.
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Section § 884.030

Explanation

This law deals with options to purchase real estate and when those options expire. If there is an option to buy property recorded before, on, or after a certain date, this law explains when it will officially expire. Specifically, options that were supposed to expire close to the law's start date won't expire on record until a year after that date. Options without an end date that were recorded before the law started will remain valid on record for five years after the law's start date. This law does not affect any recorded options that people have already stopped paying attention to.

(a)CA Civil Law Code § 884.030(a) Except as otherwise provided in this section, this chapter applies on the operative date to all recorded instruments that create or give constructive notice of options to purchase real property, whether executed or recorded before, on, or after the operative date.
(b)CA Civil Law Code § 884.030(b) This chapter shall not cause an option that expires according to its terms within one year before, on, or within one year after the operative date of this chapter to expire of record until one year after the operative date.
(c)CA Civil Law Code § 884.030(c) This chapter shall not cause an option that provides no expiration date and that is recorded before the operative date of this chapter to expire of record until five years after the operative date of this chapter.
(d)CA Civil Law Code § 884.030(d) Nothing in this chapter affects a recorded instrument that has ceased to be notice to any person or put any person on inquiry with respect to the exercise or existence of an option pursuant to former Section 1213.5 before the operative date of this chapter.
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