Does section 2932.5 of the California Real Estate Code apply to a deed of trust?

California, United States of America


The following excerpt is from Jackson v. America's Servicing Co., B261409 (Cal. App. 2016):

section 2932.5 has no application where, as here, the power of sale is conferred in a deed of trust. " '[S]ection 2932.5 is inapplicable to deeds of trust. [Citation.] 'Section 2932.5 requires the recorded assignment of a mortgage so that a prospective purchaser knows that the mortgagee has the authority to exercise the power of sale. This is not necessary when a deed of trust is involved, as the trustee conducts the sale and transfers title.' [Citation.] In other words, 'because a deed of trust does not convey a power of sale directly to the beneficiary-creditor, it is immaterial whether an assignment of a promissory note was properly acknowledged and recorded when a deed of trust is used to secure a debt.' [Citation.]" (Orcilla v. Big Sur (2016) 244 Cal.App.4th 982, 1003.)

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