Bear Creek Master Assn. v. Southern Cal. Investors, Inc.

In this case, the parties disputed which of their recorded liens against a golf course property had priority. In 2013, defendant, cross-complainant, and respondent, Southern California Investors, Inc. (SCI), recorded a third deed of trust against the golf course property. In 2014, plaintiff, cross-defendant, and appellant, Bear Creek Master Association (BCMA), a homeowners association, recorded an assessment lien against the property. The trial court entered judgment on the pleadings in favor of SCI after determining that SCI’s third deed of trust had priority over BCMA’s later-recorded assessment lien. BCMA appealed, claiming its assessment lien was created by the covenants, conditions, and restrictions governing the golf course property (the GCC&R’s) and “relates back” to their 1984 recordation. The Court of Appeal disagreed: according to the lien provisions of the GCC&R’s, the assessment lien was neither created nor perfected until it was recorded in 2014. Nonetheless, the Court agreed with BCMA’s alternative claim that its assessment lien had priority over SCI’s previously-recorded third deed of trust pursuant to the priority and subordination provisions of the GCC&R’s, even though the assessment lien was recorded after SCI’s third deed of trust was recorded. View "Bear Creek Master Assn. v. Southern Cal. Investors, Inc." on Justia Law