Legal Question in Real Estate Law in California

Re: Can my brother write a check to pay off my loan?

This is more of a tax law question than a pure real-estate question, and an attorney with specialized knowledge in that field may have a different thought on it, so maybe you should re-ask under a LawGuru heading for tax issues.

Having said that, I think whether money you get out of a deal is a gift, entirely or in part, or not, depends upon whether you give up something of roughly equal value.

After diagramming your deal (as I understand it) to get a clearer picture of the flows of value, it seems to me there is a gift to you unless you (a) make all the payments on the loan, and (b) relinquish title back to your brother when the loan is paid off. Otherwise, you are getting two benefits (part ownership and up-front cash) both of which have to be returned or there is an element of gift.