(a) In an action for damages by an assignee or a successor in interest against a beneficiary of a trust deed on real property consisting of a single-family residence containing not more than four dwelling units, wherein it is established the trust deed was forged in whole or in part by the beneficiary, judgment may be entered for three times the amount at which the actual damages are assessed.
§ 749.5.Damages In Action By Assignee Or Successor In Interest Against Beneficiary of Trust Deed
Title 10. Actions In Particular Cases · Chapter 3. Actions for the Recovery of Real Property, and Other Provisions Relating to Actions Concerning Real Property · Enacted 1984 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 749.5 extends the same treble-damages remedy to an assignee or successor in interest suing a trust deed beneficiary directly over a forged trust deed on a residence of four or fewer units, subject to the same frequent-trader threshold and preservation of punitive damages.
Full Text of § 749.5
(b) This section shall not apply to any person who does not purchase and sell four or more deeds of trust in any calendar year.
(c) This section shall not limit or affect the availability of punitive damages, if any, to the injured party.
(d) This section shall apply to any action filed on or after January 1, 1984.
Plain-English Summary
Where § 749 protects the homeowner or trustor, § 749.5 protects the person who bought the loan. In an action for damages by an assignee or successor in interest against a beneficiary of a trust deed on a single-family residence of no more than four dwelling units, where the trust deed was forged in whole or in part by the beneficiary, judgment can likewise be entered for three times the assessed actual damages.
The same limits carry over from § 749: the remedy doesn't apply to a person who doesn't purchase and sell four or more deeds of trust in a calendar year, it doesn't limit any punitive damages otherwise available, and it applies to actions filed on or after January 1, 1984.
Frequently Asked Questions
Who can recover treble damages under § 749.5?
An assignee or successor in interest suing a beneficiary of a trust deed on a residence of four or fewer dwelling units, where that beneficiary forged the trust deed in whole or in part.
How is this section different from § 749?
Section 749 protects the homeowner or trustor suing the beneficiary or an assignee; § 749.5 protects an assignee or successor in interest suing the beneficiary directly.
Does the four-deeds-per-year threshold apply here too?
Yes, § 749.5(b) excludes a person who doesn't purchase and sell four or more deeds of trust in a calendar year, the same limitation § 749 imposes.
Amendment History
Added by Stats. 1984, Ch. 1397, Sec. 2.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: assignee forged trust deed lawsuit californiasuccessor interest treble damages trust deed