SB 803, as amended, DeSaulnier. False documents: real property: voiding and restitution.
Existing law establishes offenses involving falsifying documents, elder abuse, forgery, grand theft, identity theft, and mortgage fraud, among others. Existing law requires a court to order defendants convicted of any crime to pay restitution to the victim or victims as well as a restitution fine, as specified, unless the court finds compelling and extraordinary reasons for not imposing the restitution fine, as specified.
This bill would provide that where a defendant is convicted of any of those offenses, or any other offense, in which an instrument affecting the right, title, or interest in real property was forged or false, and where the instrument was filed, registered, or recorded, as specified, the prosecuting attorney or the judge may make a motion for a noticed hearing to adjudge the instrument void, and to order restitution for an affected person.begin insert The bill would authorize a person who claims an interest in the affected property to file a claim, as specified, in connection with the motion. The bill would also authorize a person who claims an interest in the property to, in the alternative, file a quiet title action for the affected property. The bill would authorize the court, in its discretion, to stay a decision on the motion until resolution of the quiet title action.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1202.9 is added to the Penal Code, to
2read:
(a) In any case where the defendant is convicted of
4any offense enumerated in Section 115, 368, 470, 487,begin insert 530.5, orend insert
5 532f, begin deleteor 540.5end delete or any other crime, in which an instrument affecting
6any right, title, or interest in real property is found to be forged or
7false, and where in furtherance of the crime an instrument that
8conveys title or encumbers real property has been filed, registered,
9or recorded against real property, the court may, upon its own
10motion or upon motion by the prosecuting attorney, pursuant to
11the procedures in subdivision (c), enter a
judgment declaring the
12instrument void.
13(b) The instrument shall be deemed to be adjudged void as of
14the date on which the crime occurred, or the date that the
15instrument was created, forged, or falsified, or the date that the
16instrument was filed, registered, or recorded, whichever date is
17earlier.
18(c) (1) Upon making the motion to void the instrument, a
19hearing date on the motion shall be set no earlier than 30 calendar
20days from the date that the motion is made.
21(2) A notice regarding the motion shall be provided by personal
22service or registered mail to every person who may have an interest
23in the affected property within five days of making the motion.
24(3) The notice shall be published at least once a week for three
25successive weeks in a newspaper of general circulation in the
26county in which the affected property is located. The notice shall
27state that any interested party may file a verified claim with the
28superior court stating the nature and amount of their claimed
29interest. The notice shall set forth the time within which a claim
30of interest in the property is required to be filed.
31(4) Any person claiming an interest in the affected property
32may, at any time within 30 calendar days from the date of the first
33publication of the notice of the motion, or within 30 days after
34receipt of the actual notice, whichever is later, file with the superior
35court of the county in which the motion is pending a verified claim
P3 1stating the nature and amount of his or her interest in the property.
2A
verified copy of the claim shall be served by the claimant on
3the prosecuting attorney and the defendant.begin insert In the alternative, a
4person claiming an interest in the affected property may file an
5action to quiet title to the property. Upon notice of the quiet title
6action, the court may stay any decision on the motion until
7resolution of the quiet title action. In determining whether to stay
8any decision on the motion until resolution of the quiet title action,
9the court shall seek to protect the interest of any party who presents
10evidence showing that their claim to the property was based on a
11good faith belief in the legitimacy of their claim. Evidence for this
12determination may be presented by declaration or affidavit.end insert
13(5) At the hearing, any person claiming an interest in the affected
14property may present evidence
showing that their claim to the
15property was based on abegin delete good-faithend deletebegin insert
good faithend insert belief in the
16legitimacy of their claim. Where the court makes a finding that
17any person claiming an interest in the affected party acted in good
18faith in securing an interest in the property, the court may order
19restitution to be paid by the defendant to the affected person. The
20amount of restitution shall be determined in a manner consistent
21with subdivision (f) of Section 1202.4. A person who files a claim
22with the California Victim Compensation and Government Claims
23Board may not obtain restitution pursuant to this section.
24(d) Upon issuance of a judgment pursuant to this section, the
25prosecuting attorney or any affected person may record the
26judgment with the appropriate county recorder.
27(e) As used in this section, “instrument”
means, but is not limited
28to, a grant deed, quitclaim deed, deed of trust, notice of default,
29notice of trustee’s sale, trustee’s deed, assignments of any kind,
30homestead declaration, mechanic’s lien, Uniform Commercial
31Code filings, deed of reconveyance, rental agreement, lease
32agreement, easement, tax lien, or lis pendens.
33(f) Nothing in this section shall be construed as limiting a person
34claiming an interest in the affected property from pursuing any
35civil remedies that may be availablebegin insert regardless of whether the
36party exercised the party’s rights under paragraphs (4) and (5) of
37subdivision (c)end insert.
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