Legal Question in Real Estate Law in California

I bought a house with a colleague and we agreed to live in the house for 3-5 years. The house is split 50/50 and our arrangement and professional relationship is pretty good. My colleague moved out about 2 months into our purchase. She still continues to pay her half of the mortgage which I really admire her for. This is why I went into this agreement with her. She is great with business. I still live in our house and take care of the property. She hasn�t lived in the house for the past 8 months.

Recently, one of my other friends needs a place to stay. My colleague and I have agreed to rent out the master bedroom to our friend. The conflict is; my colleague believes she should receive all the rent money because she believes it�s 'her' room. I believe that the rent money should be split 50/50 because I'm inconvenienced by my colleague moving out, by living with someone else, by me solely taking care of the property and the new roomy will be renting the house, not just her room. What do you think? Does she have the right to rent out �her� room and receive all the rent money? Even with me in the house and part owner of the house?

Thank you for your time. I know you attorneys are busy people. I�m teacher and any help you can offer I would really appreciate it.


Asked on 4/12/10, 6:36 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

There is a set of legal principles that govern the rights and duties of co-owners of real estate. Most of them can be varied by private contract between the co-owners, but in the absence of such an agreement, here are the rules:

First, the law does not recognize the concept of "my half" and "her half." All co-owners are entitled to shared, joint possession of every square inch of the property.

Next, neither co-owner is expected to pay, or entitled to charge, rent to/from the other, even when one is currently out of possession.

However, net rents (after out-of-pocket expenses) received by one co-owner from non-owner, third-party, tenants, is supposed to be shared in proportion to ownership.

Similarly, absent an agreement to the contrary, certain necessary expenses are to be shared in proportion to ownership. These include mortgage principal and interest, property taxes, insurance and necessary maintenance and repairs. Costs of additions and improvements are not shared unless the co-owners have agreed in advance to make the improvements. Agreement can be express or implied from the circumstances.

So, legally, absent some other agreement between you, would be like a little mini-business where the rent comes in, the expenses of doing the rental (additional utility expense, for example) gets reimbursed to the co-owner(s) who pay(s) the bills, and the balance gets divided in proportion to ownership.

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Answered on 4/17/10, 7:53 pm


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