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Abandoned properties present unique challenges and dilemmas, particularly when these buildings have missing or deceased owners. The complex interplay of real estate laws, probate procedures, and responsible party identification often leaves municipalities and stakeholders grappling with how to manage these situations. This blog aims to unravel the intricacies of abandoned property receivership, focusing on the issues that arise from the absence of responsible parties.

Absence of a Responsible Party  

One of the most pressing issues related to abandoned properties is the absence of a responsible party. Situations often arise when an owner or tenant passes with no apparent heir or responsible family members to step in. In cases where relatives are located, it is not uncommon for them to be uncooperative. Disinterest in maintaining a property that has become a liability or conflicting interests amongst family members can lead to further complications.

Probate 

Probate is the legal process by which a deceased person’s estate is administered. If no one files for probate and the deceased's assets are left unresolved, the property can fall into disrepair, necessitating intervention to prevent it from becoming a health and safety nuisance.

Probate can assist with the following:

• Heir Identification: Probate serves to identify rightful heirs of a property by accounting for all assets and liabilities.
• Debt Settlement: Probate can facilitate debt settlement for accrued debts incurred by the deceased, ensuring that creditors are paid before any distribution of assets.
• Property Transfer: Only through probate can proper legal transfer of ownership occur to clear the title for potential sale or redevelopment.
• Court Oversight: Probate ensures that actions taken regarding a deceased person's assets are conducted legally, reducing the risk of disputes among potential heirs.  

Without initiating probate, property can languish in legal limbo, complicating any attempts to address its condition.

Proper Notice 

In many situations, municipalities must undertake formal steps to notify any interested parties about the property in question.

Serving proper notice will typically include:

• Service and Posting of Notice: Notices are typically required to be posted not only on the property itself but also made available through public channels to catch any possible claimants, including family members or potential heirs.
• Complete and Thorough Notice & Order: Any order related to property must be comprehensive to ensure all parties are informed about their rights and responsibilities.
• Reasonable Opportunity to Correct: Generally, before any intervention is undertaken by a municipality, property owners—and potentially other stakeholders—must be afforded a reasonable opportunity to remedy existing violations that may be present.
• Due Diligence: Effective management of abandoned properties necessitates thorough due diligence by municipalities and stakeholders. Key components of enhanced due diligence include:
• Researching Ownership: Examine property records, tax documents, and any lien information to uncover ownership details and existing claims against the property.
• Notice Efforts: Conduct searches of county death records and probate filings across multiple counties, which can help identify potential heirs or family members who may have a claim to the property. These resources facilitate the tracing of rightful owners and heirs.
• Engagement with Neighbors: Local residents often have valuable insights and historical knowledge about prior owners or relatives who may be interested in the property. Engaging with the community can provide essential leads for further inquiry.
• Proactive Inspection: Implement regular inspections of the property to monitor its condition and identify any signs of abandonment. This vigilance allows for timely interventions and guides future actions related to property management and receivership.

Receivership Intervention 

When abandoned properties present substantial endangerment to the public, intervention through the health and safety receivership remedy may become a legal necessity. The legal procedure for the appointment of a receiver typically follows the guidelines outlined in Health & Safety Code § 17980. The steps involved include: 

• Notice of Violation: The municipality must issue a notice to inform the owner of any code violations present in the property. 

• Service and Posting of Notice: Appropriate service and public posting of notices ensure transparency and inform the public. 

• Complete Notice & Order: This encompasses a comprehensive list of violations and required corrective actions required. 

• Reasonable Opportunity to Correct: Owners and stakeholders should be given a designated time to remedy violations before further action is taken. 

• Public Safety Considerations: If violations substantially endanger public health, the property may need immediate attention. 

• Notification to Interested Parties: Ensuring all persons or entities with an interest in the property receive due notice before a receivership is implemented is required by California law. 

• Noticed Motion/Ex Parte Application: Depending on the urgency, either a formally noticed motion or an urgent ex parte application to the court may be filed. 

Case Study: Flint Place in Garden Grove, CA 

The case study of Garden Grove/Flint highlights the complexities that arise from a deceased property owner without a probate process or estate planning, leading to significant challenges in achieving property compliance. With overwhelmed family members complicating matters further, persistent nuisance conditions at the property not only detrimentally impacted the community but also drained city resources. Authorities faced increasing financial burdens as they allocated funds to abate and secure the deteriorating property before turning the property over to an abandoned property receivership. 

In January of 2023, Griswold Law was appointed as the health and safety receiver and began a clean-out-and-sell strategy to bring the property into compliance. Our approach helped cover all fees associated with the property needs.  

Resolving Abandoned Property Challenges with Expertise  

Griswold Law has accumulated extensive experience in managing abandoned properties and addressing issues surrounding missing or deceased owners across California's various courts. With over 220 appointments, our firm is well-versed in handling health and safety concerns, nuisance issues, and complicated tenant disputes. If you're facing the challenges of abandoned real estate, consider our expertise to protect your interests. 

Download our comprehensive whitepaper on abandoned property receivership today to gain valuable insights and strategies.