Legal Question in Real Estate Law in California

Re: Co-Owners: law regarding one person wanting to sell

A strong letter from an attorney should be sent explaining legal rights and potential actions. If that does not resolve your problem, an action for partition can be filed. Please contact me if you have any specific questions.

Re: Co-Owners: law regarding one person wanting to sell

Both Mr. Guerrini and Mr. Whipple have given comprehensive answers to a complex problem.

I would retain an attorney ASAP, because getting out of this without losing money, credit, etc. is going to be almost impossible, especially with the current real estate crisis.

Re: Co-Owners: law regarding one person wanting to sell

Yes you may file a partition action. The court will equitibly divide the property and debt or force sale. Contact me directly. Almost 20 years experience in these matters.

Re: Co-Owners: law regarding one person wanting to sell

Do you have a written agreement between the two of you that speaks to this issue? I suspect not. If you do, then the written agreement will likely control.

Out of title? You mean off the title, yes? That's easy. You can quitclaim all your interest to your ex. You could grant deed it as well, but a grant deed comes with warranties, while a quitclaim does not.

Of course, that does not remove you from the mortgage. And that makes sense. After all, why would the bank release you from the mortgage obligation just because you and your ex are no longer together?

I assume you are both obligated on the mortgage. If so, the only way out of that is to convince the lender that you should be removed as a responsible party, and the chances of that happening are probably slim.

If you put down any money on the purchase, you may or may not be entitled to some or all of it back from the ex. Of course, getting it back is another thing altogether.

You can sue him to force a sale in what is known as a partition lawsuit. If there is sufficient equity, this is likely a viable option; if there is insufficient equity, then this option will not work.

This is another reason why one should not buy real property with a boy/girl friend without a clear exit strategy.

Perhaps a strongly worded demand from an attorney might help . . .

Good luck.

Re: Co-Owners: law regarding one person wanting to sell

Your question is a good one, and I can give you part of the answer based upon the facts furnished. However, a complete analysis requires a couple other pieces of information:

First, did you have a written contract covering any aspects of your co-purchase of this property? If so, that could be controlling, even if not notarized or recorded.

Second, did you contribute to the down payment (and other acquisition costs, but excluding mortgage payments) equally? In the same proportion as you hold title, which is probably but not necessarily 50-50? Or did someone contribute disproportionately? That could affect your relative rights.

Finally, how much equity is in the property? We didn't have to ask this a couple years ago, because almost everyone's real estate was going up-up-up. If you bought a year ago, you may have lost money and unless you down payment was pretty substantial, you may even be "under water," especially if you consider a seller-paid commission may have to be paid to unwind the deal.

These three items will affect your strategy. However, the basic law that governs your situation is the part of the Code of Civil Procedure allowing an unhappy co-owner to sue for partition, which nowadays is a court-ordered sale of the co-owned property and division of the net proceeds (if any) according to evidence taken at trial or by a court-appointed referee as to what is fair.

Many partition suits result in quick out-of-court settlements where the once reluctant co-owner suddenly decides he or she would rather buy out the other, be bought out, or sell the property to a third party rather than be dragged through a legal procedure with the same inevitable outcome.

A co-owner can sell his or her part interest to anyone without the consent or even the knowledge of the other co-owner, but who the heck would buy a half interest? maybe your ex-boyfriend's new girlfriend, father or brother, but there is no market among strangers for half interests in property with built-in roommate!