Legal Question in Real Estate Law in California

Re: california co-ownership of real property

Your question omits a couple of important facts. First, did the two of you buy this property from a third-party seller or, on the other hand, did you previously own it and transfer a half interest, or did the other co-owner previously own 100%?

Also, did money (reasonably full value) change hands in the transaction, or was a gift involved?

Why was there a delay in recording the deed?

Here are a few general rules that might be helpful to understand, whatever the answers to the questions might be:

First, an unrecorded deed is valid to transfer the interest described therein between the parties to the deed, and is binding on anyone with actual or constructive knowledge of the deed. Civil Code section 1217.

Assuming the contract you're asking about is a listing agreement and not a contract of sale, I'd say it is void to the extent the seller is indicating an intention or ability to sell property or an interest therein which he doesn't own. It would be perfectly legal to list and sell his half interest, but he (or she) cannot lawfully sell the interest you own without your written consent, and to do so would be unlawful, so I guess the listing agreement would be declared a contract for an unlawful purpose, and therefore void at least to the extent of your interest. Civil Cide section 1667. For the unlawfulness of selling or disposing of the same real property twice, see Penal Code section 533, it is a felony; I believe there is also a law in the Civil Code to much the same effect, but I can't find it on short notice.

Then, there is the old maxim: "He who sells what isn't his'n, must buy it back or go to prison." Not an exact statement of the law, but close.