Rights of Third PersonsProtection of Third Persons
Section § 18100
This law protects individuals or businesses who deal with a trustee, as long as they act in good faith, pay fairly, and don’t know the trustee is doing something wrong or beyond their power. They don't need to investigate the trustee's authority and can assume the trustee is acting correctly. They're safe from blame if the trustee isn't acting properly.
Section § 18100.5
This law allows trustees to use a certification of trust instead of the entire trust document to prove a trust's existence or terms when dealing with others. The certification can confirm details such as the trust's existence, its date, who the trustees are, what powers they have, and if the trust can be revoked. It should state that the trust hasn't changed, and trustees should sign it. While you don't need to include the whole trust document, someone can request specific parts if needed to confirm trustee powers. If someone relies on this certification, they're not liable if the details are wrong unless they knew it was incorrect. People can't sue for damages if they demand the full trust document in bad faith instead of accepting the certification. Additionally, a certification of trust related to real property can be recorded in the relevant county's office, making it a public record, but this isn't mandatory for property transactions.
Section § 18101
If you give trust property to a trustee while acting in good faith, you are not responsible for making sure the trustee uses it correctly.
Section § 18102
This law protects someone who unknowingly does business with a former trustee, as long as they act in good faith and value is exchanged. If they don’t know the person is no longer a trustee, the agreement is treated as valid as if the trustee still had authority.
Section § 18103
This law states that if a trust concerning real estate isn't clearly spelled out in the deed to the trustee or another signed, recorded document, the property transfer is considered complete for anyone who buys it in good faith and pays for it fairly.
Section § 18104
If someone is given control over real estate through a legal document and there's no specific person named as a beneficiary, it's assumed they own that interest outright, without any trust obligations. This assumption affects who needs to prove what in court and means that in legal proceedings, the person holding the interest represents both the hidden beneficiary and the original owner. If there's a ruling, it binds everyone involved.
If this person signs and records a document indicating they own or manage the interest, it's presumed to be true, particularly if someone else acts on it in good faith and has paid for it. The recorded document makes this assumption conclusive for those acting in good faith.
Section § 18105
If there's a change in who manages a trust that owns real estate, the new trustee can file an official document, called an affidavit of change of trustee, in the county where the property is located. This document tells the county who the new trustee is, who the old trustee was, and describes the property legally. The county will charge a fee for recording this document to cover their costs. The affidavit might also include parts of the original trust agreement or any documents relating to the new trustee's role, but that's optional.
Section § 18106
This law explains what happens when a document is recorded to show a change in trusteeship. First, it must meet all the rules for recording documents. Second, when someone new takes over as trustee, this change is recorded by the county and listed in an index used for grantors and grantees. In this index, the outgoing trustee is listed as the grantor. The county charges a fee to cover the indexing costs.
Section § 18107
This law states that when a document officially recorded in a county shows a change of trustee for real estate, it's presumed to be true. This presumption impacts how evidence must be handled in any legal dispute regarding this property change.
Section § 18108
If your interests might be affected by a new trustee taking over a trust, you can ask to see parts of the trust documents that show this change. However, you don't have the right to see the entire trust or its detailed plans for distributing assets.