Legal Question in Real Estate Law in California

I would start out by saying that in real estate as well as business deals in general, you get what you negotiate. You are not forced to accept inferior or unacceptable terms, and if this co-borrower/co-owner arrangement was unacceptable, you could "just say no."

Next, take a look at your relationship, past and present, with your partners in this venture. Why are they willing to get involved? Are they relatives? Old friends? Or near strangers who are seeing this, somehow, as a good deal for themselves?

Legally, your co-signers would probably be considered as having no equitable or beneficial interest in the property, even if they are placed "on title" as co-owners. What is probably going to happen is that there will be a so-called "purchase-money resulting trust" in your favor as the payors of the entire down payment. The co-signers would be considered to hold their portion of the title as trustees for you. Nevertheless, it is better not to have to rely upon relatively obscure theories to protect your interests. I would insist on a written agreement in which the co-signers acknowledge that they are contributing no purchase money and that they have no beneficial interest in the property.

In co-ownership situations between people who are not related, holding title as tenants in common is usually considered preferable to holding title as joint tenants.