Legal Question in Real Estate Law in California
I am lending an individual money to purchase a property. How do I secure my money position on this property (property #1); with a first trust deed? Furthermore, the proceeds to pay back my loan are to come from the sale of another piece of property (property #2) in which the borrower is a 25% owner, clear and free (on his portion), said property now involved in a partition action which he instigated. So, next question is what to file on that so that I'm first in line to be paid from the sale (or resolution of partition action on) of property #2, in order to pay off my loan on property #1. Would that be some type of UCC filing?
1 Answer from Attorneys
You can't use the UCC to create a security interest in real estate. You would need to do two cross-collateralization deeds of trust together with a cross-collateralized loan agreement.
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