Legal Question in Investment Law in California

Re: Homeowner

This is a supplement to my previous answer.

You can't take soneone's name off title without either a deed from that person to you, or a court order.

You don't have to sell; in fact, selling would be impossible without the full cooperation of the other person on title -- well, technically, you could sell your half interest, but as a practical matter there would be no buyers at a fair price.

So, the three practical possibilities are:

(1) Get your boyfriend to sign a quitclaim deed, quitclaiming his interest to you. This is the simplest way if he will agree. You might offer to reimburse some of his investment, but it sounds as though it is trivial compared with the 'rental value' he is receiving. Remember, the law will look at you as business partners, not as a married couple.

(2) You could bring a lawsuit against him seeking a legal declaration that title should be in your name alone based on purchase-money resulting trust. This is 99% likely to sour your relationship, however.

(3) A third possibility that is somewhat inconclusive but would put you in a better position is to get some kind of signed, written agreement clarifying your and his rights and responsibilities in the relationship, including those related to the house. This should be notarized, if possible, and would give you better ammunition if the romance ends and you have to go to court in the future. You would need attorney assistance in drafting it.

Re: Homeowner

When unrelated parties buy real estate together, the family law (community property, etc.) doesn't apply. Instead, ordinary contract and partnership law principles will be followed.

What this usually boils down to is that, absent any written agreement to the contrary, the court will look at two things: (A) How is title held? and (B) Who paid the down-payment?

Often, the person who made the down payment will be deemed to be the owner, notwithstanding title. This is due to a principle known as 'purchase money resulting trust' which says that the person on title holds title as trustee for the benefit of the person who put up the money. However, this theory doesn't cover all fact situations.

In addition, someone who made payments but doesn't have ownership will be entitled to restitution. This is often less than the value of a 1/2 or 100% interest in the property, however, if the property has appreciated.

The amount of restitution owed by the owner to the non-owner contributor is usually the net contribution total less fair value of the rental use received.

I am handling several cases involving this situation in the Bay Area and I would be pleased to give you a free initial consultation. Only a careful review of the facts including the relative amounts paid, property values, review of deed, loan application, note and deed of trust, and so on, is it possible to evaluate a case.