K Corp. Enterprises v. Fidelity Nat. Financial CA5

FACTS AND PROCEDURAL HISTORY

In 1994, Samuel Brainin bought a condominium in Santa Barbara. He took title not in his own name but as trustee of the Sam Brainin Trust of September 29, 1993. In June 2000, Brainin, as trustee, recorded a deed purporting to transfer the property to himself as an individual. A description of the property was attached as an exhibit. On August 29, 2000, Brainin, as an individual, recorded another deed, purporting to transfer the property back to the trust, with himself again as trustee. The same description of the property was again attached as an exhibit. On August 11, 2003, Brainin entered into an agreement to sell the property to Kyle Carter. The following day, Chicago Title Company issued a preliminary report. The preliminary report stated that title to the property was vested in Brainin as an individual, subject to item 24 in schedule B. It further stated that Chicago Title Company would issue or cause to be issued a policy of title insurance insuring against loss caused by any title defect not shown in schedule B. Item 24 in schedule B was “effect of deed from Samuel M. Brainin, a married man as his sole and separate property to Sam Brainin,…