California, United States of America
The following excerpt is from Homami v. Iranzadi, 211 Cal.App.3d 1104, 260 Cal.Rptr. 6 (Cal. App. 1989):
In a similar case, Lala v. Maiorana (1959) 166 Cal.App.2d 724, 333 P.2d 862, plaintiffs conveyed real property to defendant without consideration or a change of possession. Defendant, by virtue of his status as a serviceman, obtained a loan on the property. He continued to hold title although plaintiffs occupied the property and made all the loan payments. Eventually creditors of defendant filed liens on the property. Plaintiffs sought to be [211 Cal.App.3d 1111] relieved of those liens, claiming that the property was rightfully theirs. But in order to prove their claim, plaintiffs had to disclose the illegal purpose behind the conveyance to defendant. Because of that, the court refused to grant them relief.
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