Legal Question in Real Estate Law in California

Re: Boyfriend-Girlfriend Buys a home..then breaks up

Your ex is probably telling you that since she put up over 90% of the equity that she is entitled to over 90% of the net profit, and there is substantial merit to that position. Perhaps fortunately for you, the story doesn't end there.

Additional facts that a lawyer would want to ask you about include:

(1) How is title held? Probably as tenants in common, but there are other possibilities. Does the deed indicate percentage interests? Tenancies in common, unlike joint tenancies, don't have to be equal. If the deed says "90% she, 10% he," your goose is cooked. If it is silent, that helps.

(2) Whose credit did the lender(s) rely upon? Whose name is on the note and deed of trust? Both, probably, but not necessarily. Whose credit application was the stronger?

(3) Who actually made the loan payments?

(4) Is there any "sweat equity" issue? If you personally did a lot of the remodel work, that could be helpful.

(5) Were there other property issues between you? Did she do all the housework, or did you share? You might want to read up on the Marvin vs. Marvin case.

Since the two of you were never married, a court would largely disregard California community-property concepts and treat this situation as a business deal. Ordinary business-partnership law is what you should be thinking and consulting.

Next, it is not really accurate that you "have nothing in writing." While you and your ex may not have an explicit written agreement covering your understandings, there is an abundant paper trail including your loan applications, your recorded deed, your notes and deeds of trusts, the canceled checks for loan payments, and probably much more, that are at least extrinsic written evidence of your partnership agreement.

With the California housing market beginning to wobble, your profit on the house (after costs of sale) is beginning to look tenuous, I suppose. My advice is to negotiate something, and quickly. You might be wise to invest in a couple hours of consulting from a real-etate attorney in the county where the property is located. Then consider offering to quitclaim your interest to her for whatever your advisor recommends.

Based on the available information, you are not likely to be found entitled to 50% of the net gain.

There is also a tax aspect to review with your advisor. Review the relatively new rules covering possible exemption of gains on sale of a principal residence. You might qualify.