Legal Question in Real Estate Law in California

Re: Canceling Business Partnership

I'm not totally clear from your post what you have done in terms of the title to your property. When you say you are the only one on title, I assume you mean that you are the only one on the recorded deed. The second document you describe - a notarized document stating that the other person has an ownership interest and legal rights might be a deed, but it sounds like it wasn't recorded? In any event, a deed does not have to be recorded against a property to give it legal effect. Once a deed is signed, it conveys an interest in the property immediately. Although you say you cannot afford an attorney, you need to have someone review the documents and advise you as to the status of title. If you are the sole owner, then great - you can sell it. It sounds, however, like you have given the other person some ownership interest, and as such, the only way you can force a sale is to file a lawsuit to partition the property, and that is generally not something a lay person can successfully negotiate in Superior Court.

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Re: Canceling Business Partnership

I pretty much agree with Mr. Gibbs' response, and I'd like to add some thoughts.

First, people don't usually give "legal rights and ownership" to someone else unless it's a gift to a family member without getting something in return. Was this property deal supposed to be your capital contribution to a partnership? Does the document call for you to receive a consideration of some kind? Not that one is necessary for a deed, but if it calls for one and you didn't get it, that could be a ground for rescission or an enforceable lien. Next question is whether the document was sufficient to act as a deed or maybe contains an invalidating defect. Also, if the document conveys an interest, is it a half interest or the whole fee?

One would want to look at the entire transaction for the presence of fraud or breach of a fiduciary duty.

Your question caption implies that you think the relationship is a business partnership. If it truly is, that casts a different light on the situation and subjects the property issues to a different body of law. I would be less inclined, if this is or was a partnership, to look at relief through traditional real-property causes of action such as partition or cancellation of instruments, and more inclined to rely on the rights of a withdrawing partner under partnership law. The outcome could be much more favorable, especially if you contributed way more than your share to the formation and capitalization of the partnership than did the other partner, and also if the other has not kept up his side of the agreement.

A partnership does not require an express agreement for its formation and existence. You are partners if you conduct business as such, whether you intended a partnership or not.

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