Warren and Lionel get again closer to each other because of the happenings at Angela's party. In the hospital Warren is not moving away from Lionel. Kelly is full of joy because of Cruz's coming promotion. Minx and Lionel try to make it clear to Cassie that she should leave Warren and Angela in peace. Lionel threatens her even with a lawsuit. Cassie promises to change her attitude towards Warren and Angela. Julia is getting more and more convinced that the something with the house is not alright. She can't and does not want to believe that the house is haunted as she her thinking is too rational
Lilly has to express herself on her accusations against Professor James at the dean. First it looks like as if he is not trusting her but then he manages that Professor James admits that he has fallen out of his role because of Lilly's provocative outfit. Ted is disappointed that Katerina is moving again to Suzanne. Angela wants that Warren is living in future at her place but he retreats at the last moment. Gina is having the intention to gain David for helping her in her attempts against CC. Cassie tries to get out from David all about Angela's past in order to find out her secret.
Gina tries to find out from Julia what kind of financial claims she can make in the name of her son at CC. Sophia and Santana are fighting for CC. Rafael gets to known that he is having an illegitimate son with the name Rafe who announced himself to come to Santa Barbara. Rafael tries to find out something about the mother with whom he had an affair some years ago. The dean offers to Warren to work as a lecturer for journalistic at the University. Warren accepts his offer.
Lilly is surprised to see Warren as her new lecturer. The more surprised she is on watching Ted and Katerina bathing nude in the night. Meanwhile Julia is quite certain that the ghost in their house is real. Cassie was hiding a necklace with the picture of Angela's sister in Angela's bed. Warren is astonished to see Angela's reaction on finding this necklace.
Mason and Julia are wondering from where the mysterious portrait and the ring are coming. It seems that the house is really haunted but Mason does not want to move out. Lilly hides Ted's and Katerina's dresses while being nude in the water. Angela is telling Warren the story from the death of her sister Marilyn. Cruz is at a seminar from the police. In the evening Kelly is visiting him in his hotel room and tells him about the pregnancy of Santana.
CC and Santana are looking forward in joy for their baby. CC is getting tyrannised by a hysterical woman on the phone who is fighting for the rights of Gina. Gina tries to persuade Julia to overtake her case against CC. Julia rejects her wish but promises to help her unofficially. Cassie buys in Angela's gallery a portrait of David to show her interest into David.
The staff is serving Julia and Mason an uneatable meal. Soon after this they are hearing again strange sounds from the loft. Julia slowly starts to doubt her common sense. Cassie tries to get close to David. CC has decided himself for Santana and is separating himself finally from Sophia. Rafael is eagerly waiting for his unknown son.
Warren informs Angela that he is organizing his old band for his meeting with his old school mates. Rafael tells Cruz that he is having a little brother with the name Rafe of whom he was not knowing over 20 years by himself. Lilly is shocked on finding out that Rafe and Tawny are lovers. Boswell is telling Cruz that Vargas's wife is meeting herself with Rafe. Vargas is following both to the beach and is attacking Rafe with his knife. Shortly after Lilly is hearing a shoot. She runs to the place and finds Rafe bowing over Vagas. Vagas is dead.
Cassie tells Angela that she is knowing her secret. Rafe tries to persuade Lilly to bring him to Tawny. Mason is surprised to find out that Julia as the public prosecutor for the district was giving legal advises to Gina as she is not allowed to do so. Tawny is getting hindered by Cruz and Boswell to kill Rafe. Mason's and Julia's love life is suffering by the happenings in the house
Rafael worries about the injury Rafe is suffering from the knife and fears he might die. Tawny admits that she was having a reason for killing her husband. Minx reveals the secret about Abigail Trent who is haunting the house in which Mason and Julia are living. Cassie is putting David under drugs and finds out by this way about Angela's secret. He admits that he and Angela are guilty of Marylin's death. Cassie is recording his confession. Cruz is glad to know that his little brother got cleared and is arresting Tawny.