Tke Red,ItuBkrc Book of Cdilornin

W. B. STETNGFELLoW
Junior lice Pfd. @d Reat ,tttate Oiict
Paciflc-Southbett Trtsl un.] gattugs Bank
 Th, R'altrt EtueEu,lt ri rttLirr.Lia 297

W
L;tn( t \ ('ntfitCtS
PT\IITIAL PAYIIIENT SALES

ll, \\r. R. STRiNGFELLo*.

ALES o'J I kird. ^i prut-rt, n. prni:, trj\'mcniptan. ha\A

o F V ^ o u p 4n t u i r e n . r k i r h t. \ u l I n \ i , h i , r h - l a s r t $ o o r t ] " r L L
decades. "
- The Dlan 1v:rslirst ndoDtedin otder to cr e.rtca rruch lal'gcr nlnlket
for ccr'lain lrpes of houschotaL commoditics,the don,nright pulchase
of lvhich \ras_genelnllrIclt io bc tret,ondthe linrits oI lre;pte'ofsnla
ano cvcll moder':lte ne:rns_
B r t h i s I , h j . l n \ \ n \ " , r L - , . j r r . ,I.. o s t i, t , . o r . . , . , . h. , , o 1 , 1 o . .r_
J o i r n a . n r . d r 1 t F I n , r 5 t, . . r o , ,. . , , u \ r , . r , ,j . r . t | | . " u l s c h n , u , . r . , JL r )
melns of Dalt pzrl.rncr]tdo.wll.'i,ith snrrll pc|iodicrt (usu.rlly \\,eekll.oI
'ronihh). ^jrJ.r- , \ ' , r . 1 , . ! p r j . t " r i u , t o ( r . - . . j , 1 1 di , r t , . r , . r t _
l l l c e u I t l l o 1 ' t r r ' ( h a"s c / r r c .
Such methodsof srl€ lrnle, frorn time to tine. bee the subjectof
commend:rtior and nruch :tdvelsc c|iticism; the cr.iticism bciirg dr_
rri.d ^ la r,uir,L t h : r . L l l r r t , * j i u , d r , I , o \ d " . r r . o o no . e , , dr , - ,
p r e o \ F r ' \ ' s n r 4 tnt o j l r i $ i f - . b I l t . - . . r ' \ \ \ l r i , r rr u c h L r o L
a r 1 ) N j s a . , u ; r ! d , i n d r . i - ui . d j r " ( L r j . t d. J"dr ...r\.vr idtd\o L ,r ) t " I u r d r h ,
I.
m F J , r sc d I o | n r ' t t r u r , . r I . J r , r r p r . t .. d I . F . . . l { p :dI t u t l . h ^ " , .
w n r . t t ' r p ) n l | g t r tr n i l t , r n p p r ' tr\l u u l dJ o w i l i u r . t: . . r dr n , r rt ' - p a r . a l
p a ) n a n l t l a r r r ' , I s r u ' l . , 1 s s : v . r ? , , i q ' , " r . a tI , r , o f p t r . . . r .
prrces Inr' .ommodit:-s t,, ".'rac-d t ,.unrt,rradq iJf
'I.ossiLiiir"s o"
purchase oI same :rt.ticlesb).nca|s of all cash dorvl.
SupDoltels ot this Dl:u of sale contend that $hele the articlc
p u c h n s p d: .
1 | . a r ' I .l , r , dr t F L l a l .r h i , r r h p L I r F f i r so i | . 1 Ip d : r . " 5 , ,
p o : " e s :o I j ' r , c pt r . i u r n , e , .!r l ) o t " , j r . ) j r d d : r i or t , o " . i i . i : . r r
s o e \ r " .s . a - d t | . . 1 r i r . i , r l h r . \ . ^ , t . , , u r . l . . n d a b . -j r " . . r . . r , .
or enroLc€o savrng, "jrs
neg:udless of its nrelits ,I denlerits, sales on par'tiit parmelts
l.a\. \teadill ir"r?jr.,d. .rrit ru$ h"," ha,.d: arrr1tt"' .1 r,.ot,
erty thaL is not thc suhjert thereol "
.trat
. , O ' , . ^ " . 1r h c n r o r " r ' . r A r l d . ! p t o p . r . . r s u I , j J , j , \ m e r ,s. d c { ,
r s l r r r o t l 1 er i , l / u l ' n i r tt s r l , p r : . 1 o , .o t s , n n ' l, . , a n g , L o . A I g . . . .
h t s p I o L a L , ld\ - , - l " l , . d i h ' s r ^ . h . q h ,I d , s , F . o . t " r . t , i o , . r h , , r r , i
orner com lul1tt\ nt the 1\Ur'tcl. "
Briefln, the ltnnsa(tion is irL genelal, About :rs follows:_
A . o w r , s a l , a | c a l, l r a r l r j r n t ^ { ' U - r s u h lv . i , ! o , l $ h ; - l l p
r s l v r r r l n gL n s c i l ;
. B : s $ i l l i . g I o l r u ) '{ " i u r n t ( \ , . t , r i , " b I u ' r f n " . u i r n l . \ l p d a . 5
not have the arnountof surh price;
B has, however',a smnll nnDLtnt of cash on hand and has a steady
earning powel, flom rr{ich car.Iings he feels that from tjme
298 I'he Re&ltg Blue Book ol Calilornia

he can saveand apply on the purchaseof the lot. B, therefore,pro-

posesto A that he (B) will pay down so much cashon the agreedpur-
chase price and that periodically thereafter, he will make additional
payments on the balance due, togethel with interest on all of the pur-
chaseprice remaining unpaid at any time, and that when he has fully
paid all of such purchaseprice and interest that may accrue,that A
shall give him a goodand sufiicientdeedtherefor.
To all of this A agrees and they thereupon enter into a contract,
which is knolyn as a "Pa*ial Pa}'nent Contract for Sale of Real
Estate." This contract recitesthe fact that A has sold to B. the cer-
lain }.ealestatethereindesc bedlor a definiteprice.uponwhici pr:ce
B has paid a certain cashamountand that the balanceof the Durchase
priceshallbe paid bJ B ir monthlyor olhpr periodicalinstallmentrof
so much, commencingon a definite date and continuing on the same
definitedatc of eachsucceeding calendarmonli. or.o{her perlodical
lime thereafter.unlil tle lull amounlof lhe unpaidpul.(hasc priceof
said lot is fully paid, together with interest on all unpaid podions at
all times.
The monthly paymentsnlay be a set amount,out of which there
shall first be paid, interest due at the agreedrate up to suchpayment
date on unpaid balanceof purchaseprice of lot, and the balanceap-
plied on reductionof such p ncipal debt.
The monthly paymentsmay be for a set amount,Zlx6 interest,as
a.boves€t forth. Also, the interest may, in addition to the monthly
payme_nts and interest payment requirem€ntsbe quarterly or semi-
annuarry.
The particular plan adoptedfor partial paymentsis usuallybaseal
on strateglc reasons,that is, the type of purchaser-he may be one
\a;howants to know eachmonth just exactlyhow much he must pay, or
he may be ol1ewho wants his monthly paymentsto be applied to re-
duction of principal indebtedness only, and is willing that the interest
accning shall be an additional monthly, quarterly, or semi-annual
obligation.
The privilege is also given the purchaserunder suchcontractsto
p&y additional sumson the purchaseprice, at his option, thus accom-
plishing a two-fold purTose,fiIst, reductionof principal, indebtedness
u]}on which interest accrues; and, second, the eaxlier completion of
the purchaseend the vesting of the full title in the purchaser. This
is especiallydesirablewhere the contract cove$ unimprovedprop-
erty, and after the purchaser has proc€ededwell along toward the
final conclusionof his payments,he may desireto improve the pr.op-
erty and in making such imprcvements will find it necessaryto
encumber it for part of the improvement cost. So that with the
privilege o{ paying up the contract within a shor{er time, by means of
additionalpal'rnents,it is possiblefor him to accomplishthe cleanirg
up of the contract and the vesting of the full title in the purchaser,
and making the real estate so purchased, available for mortgag€ or
other lien purposesto provide a part o{ th€ funds for the improve-
ment, such as a home or otherwise.
The contract vrill then provide that on B having {uUy and finaity
dischargedhis obligation under the contract,that A will, thereupon,
give him a Grant (Warranty in somelocalities) Deed,togetherwith a
 The Realtu BLrrcBook ol Co,Ufornii 299
(;uirhnin or'Ti l, , d D . a d ,! , s r p d l
_ n ng | a ' l o r . . . ",,$;r,J' r:l- o rh".li.r, .f ":
S u c hg . r r a r , t p , j , 1 d d - - d r o L p . r t b . e \ p p - . , ^ i r h ,

DuIiDs all Ure tiDc ihnt B is matiilg Dl].nrentsunale].hjs con

l r ' . . 1 _r s o r l i p d h p , ^ i r , L a r o , ^' t , a t t s t r lr i . r t st ^ r t , pr p : .
p r e :0 l t h ' c u n l l h . l \ n j l ' n s i r rA . : . n d ^ r l,.Lt..l-\cnr
Ln i D h.s i l'v ard Fnnlt.
. u n r 1 ' n r a nd t n t , r r ^ I , r ! . r . p r , ,' ^ t r , i , . - . . r , . r s r t ^ . ^ , 1 r h . r . . d i , r i
h l n l n r l o l h ,r ' ^ l , I ; . r l i , , . s , r 1 . i . \ t ^ r t "i -t o l e . j | u t ! 1 1 \ s u l . , .
chase..l b)-hinr vest in him rd then only b1 thc cxecution-allct delii.er1.
to hinr of a decd to s:Li.lt)r.opertv b), A.
Undcl the ternrs of such corhact U is r'cqui]'ed,:rnit ^grces to t)ar
all trxes, assessnlcnts alld other'lilrctiens tha1,\1.illacc|ui-aeainst-his
propeltv florn .rnd after th€ clateot his coDtuci;in fac1,he assumes
the fxll duties and responsibiliticsot o\}llelship of the Dr.opeltvdur,
ing the periocl\r.jthir r-hictr tre is |rl,ing oul oD rlrs co rfact.
\ l l s , , . r ,, o " . , t t , . , r ' r ' \ . , " I , l r , j , . - : . , , p " . . - I ( co f
I ' 1 5' ! n r r , r ' i , " .t rlr"
" r , r r r i r ' ^ t l r ; r ' . l t . . , u r ' r , :-.jsr r, . ,$ i r , . t : t o t , r , 5 ^ t . \ .t ^r i .
' l E n r ' i r l r ' r \ r . g a . ., , I d , , l r r , , . o r r l " , , r . 1 . , . r r r . .Ir, j 1 \$ l n r L d
h s d u . 1 l r , r 'I . i t , i l i . r d r , p , - . | 1 . . . , , , . ,' s , . r r d, t r r r r r , 1 ,t r . , , l rr r p " . " t
r p r L l n ' ' ,5' o . " : 1 , 1i 1. ' u f i . i t | l r r , , i t , i . I i a t - : | , h n r , : - d i c , . r\ . sp , r.,
result rg in his losilg the p:lymeDtshc has nradc,:rndali light nr an.i
to the propelty co\'ered by such contracr.
T t a s . t r F r "b \ . , u rj , \ : . i t i rj : r , i , , r s " t r , , , . . , , i r t r " , . i ^ r . o f f n "
f"F i l r r r . . o rl F J r n i rl . 1 , ohr ri r r b r l ^ . j f , h i s n - . . 1 , ^ i , r t ' , r r I $ r i r . s . r ,
d p l . r . l t .i r { i i . r l , ' $ ' l L p t , , " . , n d i o h i r , . $ r i i A d s . r r r i s t . r s ,i f
l . d o p - r r u r L \ . . r t r r , r ' o rl Ipi rj , . . i ^ r I , r u r' 1 ,I y . , , r^. . . u r f a j . . o i , - ; c h d ,
l r u l t . I n . l . c x t /h ' s . r ' . n l i o r n d , l , , c t i u nr o . r \ r , , 1 . h p . o n r r a c t .
Should the seller.bt delay lvdive such defrult as just indiurie<t, he
can restore the right to dcclafe his def:rult by eiving ?l r.e:lsonable
notice to p:ly uD or. dclault will ensue. Iteasoriable roiice h:s unaler
snch cilcumst^Dces bcen construed bl. oul Crlifornia Supr.emeCour.t
to be.lhir'tt days. Theretbrc, i1 ,11tei deiautt i,, paym""is, r"
has allo*-ed coDsider.abletimc to havc elapsert,he ihoutd ser.vc"ett". such
l h i " r J d ; , \ r o r i F i . I d , r , . a d i " l J r l , " | h ; . \ 1 , i | a r i o r l p f p o t ,i t r t a
h r r \ - 6 r ' 1 . .,,,1^ i t f c " . l h n . " l f o . d . f i , I t r u i r t . t , h r | - p t . . r l , . d | | -
u r d p r r h . . ^ r r r r n . r t J , . 5 . 1 , . r . , a r d a c , a , .j^, d , r j , I n . a t o r f p i . a l l
n r t h c r r u r o r " rsr A t , t si h e J e ud, c r .
\\rhilc such folrns of contr.acts:1r'efr.ect.v- inclulgerl jI betw€e| iD_
d i f r d i 1 . . I L i j ' f r l r . l , , r ' r , r , r o t , n " . : , .rrr . r - o t , , r . i . . b).t,r"S.
"r.
r ' ^ i t , i r i , r ^ . . . i 1 r ' r . , : n r ' ' r ' u . l . n, rt i r i , s t u i r r d i l d r . r r1 , u | r '"xc5t - 1 . .
. | | r t . . . f l i q r ' , S , u n r r . r , . , s \ r , p n l , , . j . . .t , . n . . . j r d u i r , t t _
cities,alc subdividedinto (itv tots ol snuil acrengc,sucli tr.acti alc
r s u h .l \ n - r, ' 4 . , , l - r : ' J , . r r " , . o 1 . f n , , i " "u. j . . . s : . r d, . , , p
o r r " \ r s o ' s I r , r ls r r F , h j , i I l : . i l , l , r r . ! " "\ro l u r " . " h j l d l . d L ]
such corrcelns aDd associated ir]diriduals thl'oug.h tlust rleprl{merlts
of thc varions tlust rnd titte comDanies
\ V r , . - A ' : r d : d L 1 , - r " . e 1 . 1 ;r.r . , 1 . t p I , r i , . t . p i . .l o \ . . . t h p f u l l
r'rlp,.l lhp $holp tr"... j. .L,l L!||5r qhin jr.,^rd:ng
'o ih. rDcn "o tij rJ. $1r..
ds jjr\' rh' \hul, r't.p. Lo\r,-ri.,-- rrh.ljrl- ror.rrusi
p r , . t o ! t s {o r , r ) i i . \ ' . I - r . . d L \ . , l , a , / r , r i o r o i t | u . . i . . s u - db r ' L
'ho5' $l,oa|Flha,-jl io
t , , " . i - i ' r j , - , . , ^ . . t i , l,l , . ^ \ . . p , . - r , i r . , f r ; t 1 . . d
 300 The Realty BIue Book ol Culit'olnia

Upon rhe.trust companl receiring (onveyani,eof surh Tealpr.op_

,
erry.^it imrnedialelyrhArcafrar.undpr.dire.tion of ns bpr.efieiiries,
nles lor record a mrp ol such 19trd.\vhereinajl jots, streets,etc.. axe
platlpd. Lrpona(ceptar(p of ihp,nat b\ rhp p,oner author:tipqa sales
calnpargr.is then instiluted. usuallj bl, r thoroughly organizFdqalps
agen.y. As purchasplsafe nr'ocJred..ontracls arp jscuadto iha.n bl.
t h p t n j s l c o m p a | | v\,\ h ' ( l c o n r a i n- n a l e r m c o f . a l p a n d p a y m " t r t ._
provisionsf4r' forfeitulp end cpr efAlt\ an) buttaing restiicii;n; ana
useslmposedon lt e nronp,'\. fo| lhp Fo.ralbpnpfirof All
fur.l rsefs iD
that tract
. Thes? buildjng 'enrfi.liors iI Iesidenlijrlse,riors senel.ailvDro_
vrcleagarnstsala 10 and uqe b) an) Fx,.aplof the Caucasia,rrarp, rp_
srnclrons Iof festdancenufpospsonlJ lor a dp6nite lar,iod {usuall\
l l o m l w e u l y l o f i f l ' } J a a t . s r -. m i | | i r r u m \ j r l u p o f i r n p | o v e m e n rasn i
whplhej one o| i\.o-slorJ houses..tisiin,.nlrorn srr.et rtrd raar lrnp
Inlll rmp|o\'ema tc n,rst be pln,."da,,d mart, olh.rs, deDendinEuDon
I l.ppol prope y involred and charactprdesiredlor neighborho;d.
p.t the palmcntc as e1 iall duc and
_ -- The trusl companas.ol on
lull payment, jsslle deed to Durchaser
Where -large tracts of ltnd are subdivided into city lots enalsmall
?ctFageand arp-handledbJ trull compenics.rheJ are known as,Sub_
orvrsronlruqts and clunng lhe adm;nistrsljonof such lrusl and for
rna Denenrot the beneficialownet.stherpunder,1be Tt,usrce,oul of
l h e m o n i e s . o m i n gi n l o i t s h a n d sb r v i ) . r u po l r h p , o n l r . a c t iss s u e db i
lhem lor properlt sold undpI thiq subdivisiun,pa] the tnxes nnd lien;
upon that portion of thp propertJ |emaining in iis hanas at theiirne
ano.nol so sotctunder conlracl. and whprp lhc property is likewisethe
su,olectot a mortgage.lhe trustpe atranges fot.sdequatpand DroDer
rsleaseagTeemanisfor pach lo1 in such s|bdi\.ision,io the endinat a
full protection is afforded the pur.chasersof such ;ontlacts_that in
no event would the foleclosure of a mortgag€ afiect the buyer,s inter_
est in the lot so purchased bv him.
Contra4ts issued bl tfu.l companipsundFr surh circumstance!
grve aDsoluteprole(tiorr to the purchaser.lhal he uill,
uDon makins
I,ull.paymenland living up to lhe tcrms ol his contract, rereive hii
oFedand guaranlec of iilie for ihe iand so purchasedbl him-
From thp standpoinrof owners ot pr.oppnyto be s; divided,rhe
servrceo, a I,rust comlany. as ttrrstpe,is pallicularly dpsil,ablpand
salrsla(lory, loj.tlp reasonthat thel kepp a full and completerpcord
or aI rransac ons ln earh trusl and do all o{ the bookkeepinsthprelor.
and such rpcords and such books so kepl trv Ltr.rr.,,u.e auiitaife foiltrJ
iDspection of the patties in interest at ail times, and in adclitjon to this,
lheylender such bpnaficiaries conplere rpports.mnnthl), so rhai such
r'pnFli(ranpsare at all ijmes ad\ispd as to tbe pr.o$.essand status ot
the subdivision in which Urey ar-eso interested.
, Vasring of 1;rle in T|us1 Cornpanies. as indi(^ted. has proven to
be \er) d.sirAble rnd ol conlrde|ablpadvantagein rhe maikeling ol
this type of property because of the assuraDaeof stability of li e
while pa)'ments are be:ng rnade anal certainty of conveyance on full
per-formanceofconlrnct Ipquirpmcnls. This is. in facr. s; nearly true
thar -spldomls a lrusl .omn^ny coniract re,.ordFdbJ rhe pur.haser,
ln lacl, lrusl compallie!gener^llJ adrise prrrchaser<under con_

fl
 The R&lt! Bl e Eoutt.f Cetilonti& 301
tr'actsnot to recold theil contlacts{o1.thel.easonthat a lecor.aleal con_
i r ' r . i m n L a sr . r r o r d
' ^l i , . . r tiLu . .r h n . ,r , . t , x s - r , ,
r o r , s r . i : ' r liin i e ; r
r l l r r n p l o f p " ' . . , i r l r n - , ' , r ' d . . i u r u i r ) i ^ . o r r . r . . r . ,{ i l t . \ ' p n . u . , l l v
. o s l t h " 1 i u . r . l rs , | . , ^ l ! i , , t i l r a r h F C , r r l i r i r r . n^ t
Tl i. i"-:;j,
r h r , i , . . , ' . i . , . rrp. I L i I i , . r , . . 1 i ^
lsyr 'o-$l lr:n' 13 ,-"l ,iun rl.h . g : J . I p , . ^ L ' . L t"
lrr " fi . | ."a, d. o- 'o' rf | ,rr. er ,
. o i r , r ' r . ^I t i . , 1 s l t , , , o . p , i " q t r . i s . , n d .i r i . . p , p " s , , r .f ]o r r h a h , , q o . . d
l n 4 l v r r e r o d a ' 1 t , , p r' . r t e r - c t i r r ' 1 . , p | o D n . : 1 . o . t o . s " i p _l h , . . . . ,
or the conttart :r!d then have the contlnct, 1\,ith the assisnmant
'F.r?rurdpd.I ch,s.\iF..i!. ln.t ,,,ak,
.\\ s ,,lJi ioi, .i,i.-";n^..".;
rne nme n1 cleed.
W::,- s.re,i
.r r , g , o l h t ' r g . h | l l ! : . 1 1 . r u , u . , r , . t r r " . , r [ r . : - o r . . t i , r t r , . . s a r
r " . o f , l I g i - . r l j r , h - i s r - l \ i r , r " I u t l : .u t o r t r a I l . r . l
conpnny to del:vcr his decd :r"ndijUe nnd thnl flie rccrilatirg or the cori_
u r ' F i , , \ r i r . ' r i r r : r r r o . r i , r , ; , r . J L l i r , o n a. l; . , i , i r r ' " ,
l i l i r 9Itn^ n ' .
Ir'^rac I , h s r . , , r . . , . , 1 , . j r . 1F! r \ \ . D r i r d i \ i d L a i ! ,, h i s a | E r r m crr
rs rot good, for the leason that an ir)djvidunl ,":|v'di" -.-b;";,"c
i_r'ol\?,1..o,1h1 r . r , p r , , . h i r . . , . ,.rn. r ,r . ^ " rI i E h . b n b p r r o . t , , o r " " , " r l
D\'rner'e(otctrng oI thc .oItr:rct.
Purch:rse of lots i ihis nr:rnnel h:Lsbeell thc nleans of thousands
^ l" t . u 4 rt F o t ,a : ' m n r r . t , l i s, .l l r j r s r \ r r ! .r h J r r . a \
\\oujd nol Jrjr\p.lnfejr AD\ other'1rar. " o u l dI n t u f r , r . o h . L l I

., .With.a lot so bousht comesthe;ision oi a home,analno sooDeris

t h c l o i p r ' d .f u . , , : r h " p j , . . . r d j j , v i . r " sf ^ , a . , o n , pj r . - . o r n , u , n L e d

T n r . r u q il '.p,r
" lsh r r r.",.,: r \ F . : r ' ^ s . ," r s u . l . , i r , f l i , s 1 i , i st o s l l | r u , t -
t s. i , r d i ^ d , i I n | l s a . d su f \ v o | k : n r n L e l . s
l o m s l r r . l h p s t | p t s l :o l S n u r h p r .rr' ^ ' l o " I i a . i t i p . r s c o rt . l t t e a r i _
d p n . ea t t h p s o | t h u t t r r i "t , , ,r o f s p t .nr a I . p . .,l\ t x t e .
LilrtrpDr|d. , ,' !t d, \. ot, .n, co||tilj.ns go eren iur-ha| bv
...
s F , l | r g . r n . . o . t r r , t ia 1 l , o r , o , L , r " i j I I . j , J n p r .
l,ljL and thus rhe man
o r . m l r , r i m F r r r rb a o r , p s i n r n p d i a r . l r 1 , o s - . s s . d u f , h o m . , r r d i , , s t p a d
0 T r n o r r t h l JI n r L h . c r , r ! i I s u r a r d j , 1 . r i | i I q I r l l u \ " p r " \ r t ,
ot.j.
T h " r c i . n - o . o r , I L l n I r o p \ " t o 1 , " r e t r , . . r, , ,
rng oe pnts ut ,tritt\tdunll!o\,j.pd r utr " , . . r a rr h e i j r " , " a , . t _
"-, l o , . t l ^Flonrp owlrer. bv
\ | | r u c o l r L . r cv . l \ . t u \ : - s s i o r : , 1 I . i , a \ I , a . . 1 r - f. o. . r l r F . a \ r r , r t a d " .
,i
ror' rrs ooser'\a ce .rnd pn1bl(enlent_
Comnunism, Bolsheyisnr anal Telrolism are irlconsistent with the
oll.rremhip.ot propeltl'r and once a utaD becom€s a home orvlLet,,
he
can.and will have littl€ s)mpaUr),1vith an],system that would jeopaI'rl_
rze rts exrstence ol render its loss or destr\rction vel.}' pl,obabie.