California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 14 — Lien, Chapter 2c — Real Property Sales Contracts, Section 2985.2

Any person, or the assignee of such person, who sells a parcel of land under a sales contract which is not recorded and who thereafter causes an encumbrance or encumbrances not consented to in writing by the parties upon such property in an amount which, together with existing encumbrances thereon exceeds the amount then due under the contract, or under which the aggregate amount of any periodic payments exceeds the periodic payments due on the contract, excluding any pro rata amount for insurance and taxes, shall be guilty of a public offense punishable by a fine not exceeding ten thousand dollars ($10,000), or by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code, or in a county jail not exceeding one year, or by both that fine and imprisonment.

Notes

Prohibits a seller or assignee under an unrecorded land sales contract from later creating an unconsented encumbrance that makes total encumbrances exceed the contract balance or aggregate periodic encumbrance payments exceed contract payments, excluding prorated insurance and taxes. A violation is punishable by a fine up to $10,000, imprisonment as specified, up to one year in county jail, or both.

Use as reference

Lexinter.net | California Code, Civil Code - CIV § 2985.2 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-14/chapter-2c/section-2985-2

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