Legal Question in Real Estate Law in California

Re: Co-Ownership of Home

hello:

if you are both on title, and she is unwilling to simply buy you out for one half of the value (less outstanding encumbrances, of course), you would have to bring a lawsuit for partition. this would force her to either buy you out, or to sell. unfortunately, if there is not a great deal of equity in the property, this may be costly in relation to your ultimate benefit.

there are other issues and questions related to whether you are both "equal" in your interests.

good luck

Re: Co-Ownership of Home

Answering your last question first: Yes, she can continue to live there and not pay you rent for "your half." The reason is that each co-owner (whether as tenants in common or as joint tenants) has an undivided interest in the whole property -- meaning each has the right of possession of the entire property. Since she has the right to possess the entire property, she doesn't have to pay you rent. Note, however, that if she moved out and rented the place, you would be entitled to share the rent received.

OK, now the first question or group of related questions. You can't specifically force her to buy you out unless, perhaps, you have a written buy-sell agreement or the like. You can, however, file a specialized kind of lawsuit called a "partition" action. The name comes from the old days when courts actually imposed a lot split on properties, usually farms, to physically divide them between unhappy co-owners. Nowadays this is impractical and also contrary to subdivision laws, so most partition actions result in a court-ordered sale and division of the net money proceeds, if any, (after paying off the mortgage, taxes, selling costs, etc.)

Now the good thing is that defending against a partition suit is so expensive that most co-owners will negotiate rather than go to trial. The result of the negotiation is often an out-of-court sale or, as you suggest, one co-owner buys the other's equity interest.

The way the property is financed may influence the practicality of a buy-out, of course; no one would want to be an ex-owner and still liable on the mortgage. So, oftentimes the party that wants to buy out the other must have good enough credit to refinance and carry the whole debt load.

I'm not sure where 95829 Zip is, maybe near Sacramento,but if you want to retain an attorney with some degree of specialization in these kinds of deals I could handle a negotiation followed by partition suit if necessary. Let me know.

Re: Co-Ownership of Home

A quick follow-up. Whether you two are equal co-owners may depend upon who put up the money for the down payment. Unless you had a contract to the contrary, or an intention to make a gift to the other can be inferred, ownership tends to follow down-payment, without regard to what the deed may show, and a co-owner who provided 100% of the down payment MAY be able to assert 100% ownership under the principle of "purchase money resulting trust."

Re: Co-Ownership of Home

Well you've done it also. You asked a question that poses substantially more questions than your question even asks. What you told me is you haven't entered into a written agreement with someone regarding a piece of real property which is really not especially in your best interest. Which of also told me is the U. of not consulted with a real-life attorney who is expertise in real estate/litigation. Also, not especially your best interest. My advice get out of your chair, contact an attorney who is expertise in this area, bring them a copy of the deed and any written documentation applicable to your interest in the property, staying in the property, or otherwise. Give him/her every fact, name, address, phone number, and piece of information that can help you. Sit back, let them tell you their game plan and then, if you are businesswise in the mood, hire them and let them represent you. When he yourself do anything will get you into as much of not more trouble than you were already in. Is there a pot of gold at the end of the rainbow. God only knows and she is not telling me. I have practiced law in the San Francisco Bay area for over 30 years and feel quite confident in terms of my familiarity with your problem. If you wish to contact me to set up an appointment please call me at 925-945 -- 6000.

Re: Co-Ownership of Home

You may have a claim to the property and have the property sold to satisfy your interest by a partition action. Were you on title? Do you have any proof of your financial contribution to the property. We will need to review your documentation. Please contact our office at 714 363 0220. We handle cases throughout California.

Are you on title? Action is called a partition.

You may contact me.