What is the “lost document rule”?

The "lost document rule" is a legal rule in the state of California applied to real estate transactions. It states that if a party to a transaction claims to have lost a document related to the transaction, they must prove that the document was authentic and legally binding. This rule is beneficial because it ensures that parties in real estate transactions are taking responsibility for their documents and that they have not lost something that could potentially impact the transaction. The lost document rule requires that the party claiming to have lost a document must prove several things in order for the rule to apply. First, that the document existed and was properly executed, meaning that it was properly signed and had all the required information to make it legally binding. This proof should include any photos, copies, or witnesses to the actual transaction. Secondly, the party must prove that the document was lost in order for the lost document rule to apply. This can include proof that the document was sent and not returned, or that the document was at one point in the party’s possession and is no longer there. The lost document rule in California is important for protecting parties in real estate transactions. By requiring proof that the document was authentic and legally binding, as well as that it was lost, the lost document rule ensures that parties to transactions are held accountable for their documents and that real estate transactions do not suffer from any lack of documents.

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What is the “lost document rule”?

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