Theories of Liability & Common Defenses

A bona fide purchaser who takes real property for value, in good faith, and without notice of a prior unrecorded interest prevails against that interest under California's race-notice recording statute. For the defense to apply, the purchaser must have taken without actual notice (knowledge of the prior interest), constructive notice (from recorded instruments in the chain of title), or inquiry notice (from visible occupation or possession). A lis pendens defeats the BFP defense against subsequently recorded interests.

Real property actions are governed by varying limitations periods: adverse possession requires 5 years of actual possession meeting all elements (CCP § 325); actions to recover real property generally within 5 years; breach of CC&Rs typically 4 years; and construction defect claims under SB 800 are governed by the statute's internal limitations scheme (10-year outer limit for patent defects; shorter periods for specific categories). Limitations are subject to tolling by active concealment, minority, and other equitable doctrines.

A landlord of a covered unit may defeat a wrongful eviction claim by proving one of the enumerated just causes under AB 1482: non-payment of rent, lease violation, criminal activity, breach of a no-subletting clause (fault-based causes); or owner move-in, substantial rehabilitation, demolition, or withdrawal from rental use under the Ellis Act (no-fault causes). No-fault evictions additionally require relocation assistance equal to one month's rent. Single-family homes with proper notice to tenants, and property owned by individuals with 10 or fewer units, may qualify for exemption.

For new residential construction completed after January 1, 2003, the builder has the right to receive notice of claimed defects, inspect, and offer repair before any lawsuit may be filed. Failure to comply with SB 800's procedural requirements — including the detailed notice requirements and the builder's repair opportunity — may result in dismissal of the lawsuit. Developers routinely raise SB 800 exhaustion as an affirmative defense in residential construction defect cases.

Adverse possession requires proof of all five elements for the full five-year period: actual, open and notorious, hostile (without permission), exclusive, and continuous possession under a claim of right. The defense challenges any element — including permissive use (defeating hostility), shared possession with the true owner (defeating exclusivity), seasonal or sporadic use (defeating continuity), or the absence of property tax payment (which California also requires).

The Ellis Act permits an owner to withdraw all rental units in a building from the rental market, permitting no-fault eviction of all tenants. The Act requires proper notice (120 days, extended to one year for elderly or disabled tenants), relocation assistance, and registration of the withdrawal with the local housing authority. An Ellis Act withdrawal, if properly executed, provides a complete defense to wrongful eviction claims — but local rent-control ordinances frequently impose additional procedural requirements.