New Summary Procedure For Voiding False and Forged Documents
October 20, 2014
A new California bill, AB 1698, establishes a summary procedure by which a false or forged instrument that is filed or recorded may be adjudicated to be void ab initio (“from the beginning”) without the requirement of a quiet title action in the civil courts. A prosecuting attorney who is successful in convicting a perpetrator may correct the record by requesting the court (in which the perpetrator was prosecuted) to issue an order that the false or forged instrument is adjudged void. CBA worked with the bill’s proponents to add protections for the rights and interests of any parties acting in good faith, such as secured creditors. However, the parties acting in good faith must take action in a reasonably prompt manner to protect their rights following notice of the proceedings to void the instrument. Otherwise their rights and interests will be terminated. See CBA’s Regulatory Compliance Bulletin for more information.