Legal Question in Real Estate Law in California

Re: dead beat girl; friend

I can tell you what I think the law is, but I have to stop short of giving you advice.

Your ex-girlfriend has an argument that she is a 25% owner in the house, whether the title reflects this or not, as my earlier answer tries to point out. Whether she wins this argument in court or not may depend upon the strength of your proof that the $10,000 she contributed to the down payment was a gift to you, and not a co-investment, which is what the law obliges the court to presume (the presumption is rebuttable by good evidence).

If you sell the house, and she later sues you, you might end up with a judgment against you for 25% of the sale proceeds plus possible punitive damages for breach of trust, or fraud.

On the other hand, (1) she might not sue you, or (2) she might sue, but be poorly represented and lose, or (3) she might be well represented but still not win because you have ironclad proof that the $10,000 was a gift to you.

So, what you do will have to depend upon your assessment of all these factors, plus other facts known only to you. You might consider retaining a lawyer -- it wouldn't cost that much to get an opinion from someone with whom you can have a real dialogue about the facts, the law, and your risk-reward balance.