6424 CORP. v. Commercial Exchange Property, Ltd.

The real property involved herein was subject to a ground lease having a 99-year term which began in 1912. Holland Park Investors, Ltd. (Holland) became the owner of the lessee interest on December 17, *1223 1980. The leasehold was at that time subject to purchase money encumbrances consisting of a $400,000 first trust deed in favor of respondent Commercial Exchange, Ltd. (CEL), an $840,000 all-inclusive 1 second trust deed in favor of respondent La Mesa Enterprises (La Mesa) and a $2.2 million all-inclusive third trust deed in favor of respondent Commercial Exchange Property, Ltd. (CEP).

Holland immediately sold its interest in the lease to Stan K. Kure and Jaqueline L. Kure (the Kures). Two days later, i.e., on December 19, 1980, the Kures purchased the fee interest in the property, thereby becoming the concurrent owners of the fee and the leasehold.

On October 14, 1982, the Kures conveyed their interests in the property by grant deed to IFR Realty, Inc. (IFR), which the next day conveyed the same to Richard E. Wendt (Wendt). In that transaction, Wendt executed and delivered a trust deed in favor of IFR which encumbers the fee. On October 3, 1983, IFR assigned…

I fully concur in the result reached by my colleagues. I write here only to stress that since our appellant never has acquired legal title to the subject leasehold estate, the factual prerequisites to even a consideration of the doctrine of merger have yet to occur.

The real property involved herein was subject to a ground lease having a 99-year term which began in 1912. Holland Park Investors, Ltd. (Holland) became the owner of the lessee interest on December 17, 1980. The leasehold was at that time subject to purchase money encumbrances consisting of a $400,000 first trust deed in favor of respondent Commercial Exchange, Ltd. (CEL), an $840,000 all-inclusive [1] second trust deed in favor of respondent La Mesa Enterprises (La Mesa) and a $2.2 million all-inclusive third trust deed in favor of respondent Commercial Exchange Property, Ltd. (CEP).

Holland immediately sold its interest in the lease to Stan K. Kure and Jaqueline L. Kure (the Kures). Two days later, i.e., on December 19, 1980, the Kures purchased the fee interest in the property, thereby becoming the concurrent owners of the fee and the leasehold. [2]

On October 14, 1982, the Kures conveyed their interests in the property by grant deed to IFR Realty, Inc. (IFR), which the next day conveyed the same to Richard E. Wendt (Wendt). In that transaction, Wendt executed and delivered a trust deed in favor of IFR which encumbers the fee. On October 3, 1983, IFR…