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Bona Fide Purchasers

Tuesday, August 15, 2017  
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Deutsche Bank v. Pyle

Cal.App. 4th Dist., Div. 1 (D071079) 7/13/17

The court held that a judgment that was obtained without giving notice to Deutsche Bank was void and that a subsequent bona fide purchaser took title subject to the deed of trust that was purportedly cancelled by the void judgment. The court pointed out that the action in which the void judgment was issued was an action to cancel an instrument, and not an action to quiet title. Accordingly, the quiet title statutes do not apply, in particular C.C.P. Section 764.060, which provides: "The relief granted in an action or proceeding directly or collaterally attacking the judgment in the action, whether based on lack of actual notice to a party or otherwise, shall not impair the rights of a purchaser or encumbrancer for value of the property acting in reliance on the judgment without knowledge of any defects or irregularities in the judgment or the proceedings." The court noted that in a quiet title action a court does not simply issue a default judgment. Rather, in default situations in a quiet title action the court must hold an evidentiary hearing where it considers evidence of the plaintiff's title.


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