- 13 - Dear Bill: This letter is to review the recent transaction between Lowry & Wells Investments and the Aids Association for Lutherans (“AAL”). AAL was the holder of a Promissory Note Secured by Deed of Trust on the Fitch Street Property owned by Lowry & Wells Investments (“L & W”). In late 1993 a settlement was negotiated between AAL and L & W whereby L & W would convey the property to AAL, together with all leases and tangible personal property, in return for which AAL would agree to accept such conveyance as a full settlement of the then outstanding indebtedness. Through joint instructions to escrow, the parties agreed that the closing would occur subsequent to December 31, 1993, and in fact the Deed conveying title to the property was recorded May 27, 1994. (Mr. Holt is identified in a document stipulated by the parties as “the predecessor accountant”.) Petitioners quote sections 1055 and 1056 of the California Civil Code (West 1982) in support of their position that title to the Fitch Property passed on December 9, 1993, when the partners executed the warranty deed: SEC. 1055. Presumption as to date of delivery DATE. A grant duly executed is presumed to have been delivered at its date. SEC. 1056. Delivery necessarily absolute DELIVERY TO GRANTEE IS NECESSARILY ABSOLUTE. A grant cannot be delivered to the grantee conditionally. Delivery to him, or to his agent as such, is necessarily absolute, and the instrument takes effect thereupon, discharged of any condition on which the delivery was made. In quoting the above sections, petitioners overlooked Cal. Civ. Code sec. 1057 (West 1982), which provides:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011