Table of Contents

The Land of Aas, or, Dorothy, We’re Not in Kansas Anymore…….3
By John Paul Hanna and David Van Atta

A review and discussion of the landmark decision, Aas v. Superior Court, in which the California Supreme Court ruled that construction defects in residential housing were actionable only if the defect caused actual personal injury or property damage, the legislative response, and recent court cases.

Mortgage Shotgunning and the Priority of Trust Deeds…………….9
By Scott Talkov

This article reviews recent California case law concerning the priority of trust deeds among lenders targeted by the real estate fraud known as mortgage shotgunning. The cases reveal a district split among the California Courts of Appeal when evaluating identical facts. In these cases, the county recorder’s delay in indexing recorded documents gives rise to a claim from the holder of the second duly recorded interest that it did not receive constructive notice of the first duly recorded interest. The author recommends that the California Supreme Court resolve this circuit split by establishing that the first duly recorded interest by a bona fide purchaser or encumbrancer be declared first in priority pursuant to California’s statutory race-notice recording system.