BUS 23 Lecture Notes - Lecture 9: Encumbrance, Homestead Acts, Promissory Note
3 Dec 2020
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Document Summary
Lease is an encumbrance and a homestead is not considered encumbrance. Homestead - special provision of california law that allows homeowners to protect homes from forced sale to satisfy their debts, within certain limits. Homestead -> housing + adjoining dwelling where homeowner resides. First 75k of a home"s value may not be used to satisfy judgement against head of household. Homestead does not protect homeowner against foreclosure on trust deed, mechanic"s lien, or lien filed prior to filing of homestead. Usual method for termination of homestead are the sale of the property or filing of a declaration of abandonment. Declaration of abandonment must be acknowledged & recorded by involved parties. 1 property, usually has a release clause for 1 or more of the parcels. Lien - document that uses property to secure payment of a debt or discharge of obligation. Trust deeds and mortgages = security devices that make property security for debt and considered personal property.
