Does a mistake of fact under section 1577 of the California Civil Code apply against a property owner who signed an agreement to pay off all liens and encumbrances against the property?

California, United States of America


The following excerpt is from Lopez v. Phillipsen, E041358 (Cal. App. 6/6/2007), E041358 (Cal. App. 2007):

Although Lopez agreed to pay off all existing liens and encumbrances, he was mistaken as to the facts concerning what liens were recorded against the property. And, although Lopez should have inspected the title report before signing the agreement, this oversight, as discussed above, did not amount to a neglect of a legal duty, which would preclude the finding of a mistake of fact under Civil Code section 1577. (See Donovan v. RRL Corp., supra, 26 Cal.4th at p. 283.)

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