Drake

Here we face two primary questions: (1) the remedy available to subsequent purchasers when a prior land sale transaction to which they were not parties violates the Subdivided Lands Act (Bus. & Prod. Code, § 11000 et seq.), and (2) the subsequent purchasers’ rights pursuant to a release clause contained in a blanket deed of trust which the , original parties did not perform.

This is the second appeal in this case. The previous appeal resulted in a reversal with directions to the trial court to consider further evidence and to make factual findings regarding the applicability of the Subdivided Lands Act and the continuing validity of the release clause. On remand, the court concluded the Subdivided Lands Act applied and had been violated, but that plaintiffs had no standing to declare the purchase void. The trial court also concluded the release clause was rendered a nullity and rights thereunder waived.

Summary of Facts

I. Facts Established at First Trial

In 1979, J. Craig Holworthy, Land and Development, Inc. (Holworthy) purchased land located in Porterville from defendants, D. W. Martin and Loren and Betty McDonald, for $300,000. Holworthy paid $50,000 as a down…