Legal Question in Real Estate Law in California
Bought property in my name for my brother-in-law; he does not make payments
15 months ago I bought a condo in my name for my brother-in-law who was supposed to make all payments and then buy the property from me after six months. Since he could not get financing and was as of yet unable to sell the property, he refuses to make any more payments on the mortgage. Can I force him to pay me back if I make the payments or is he completely of the hook since property and mortgage are in my name? The payments clearly originated from his account for more than a year and he received all rent income and almost all of the initial mortgage money. My brother-in-law does not live in the place and nobody is receiving any income from rent right now as the previous renters were evicted by him because they interfered with his selling the place.
2 Answers from Attorneys
Re: Bought property in my name for my brother-in-law; he does not make payments
Firstly, this problem is of sufficient consequence (i.e. enough money) that you should consult with a local real estate attorney who can get all the details from you and work with you on your long-term solution.
Secondly, you own the condo, so why don't you take control of it? You rent it out and/or sell it. If your brother-in-law isn't paying for it, why are you letting him control it?
Thirdly, you might be able to sue your brother-in-law for any damages you have incurred because he breached a contract between you by which he promised to make the payments and buy the property from you. Such a lawsuit presents a lot of issues, such as whether enforcement of the contract is barred by the statute of frauds, and whether you have, in fact, suffered any damages.
Re: Bought property in my name for my brother-in-law; he does not make payments
Unless you have an agreement in writing signed by your brother, you cannot force him to buy the property. I suggest that you cut your losses and move along by selling the property or otherwise. You face a danger if your brother suddenly changes his mind and tries to claim title from you. Please consult a local real-estate attorney on a strategy to extricate yourself from this entanglement.
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