Legal Question in Real Estate Law in California

Re: dead beat girl friend

Generally speaking, from your information provided, if the monies at issue were "gifted" to you rather than loaned, then your ex has no standing for reimbursement or rights to increased value, as she would be legally seen as a tenant rather than a co-owner of the property. However, you may want to consult with an attorney asap to discuss other relevant details concerning this matter that could impact your legal rights and/or obligations under the circumstances. If you would like our complete assistance and a free initial consultation, contact us directly.

Re: dead beat girl friend

What are her reasons for demanding $75,000? Does she claim that the house has appreciated in value and that this is her "share" of the appreciation? I imagine that she is claiming that her money was an investment in the house, as opposed to a gift . . .

If the money was truly a gift, then likely, you owe her nothing. And if she is not on title, then you can likely sell at any time without obligation to her.

Before proceeding, or if you she sues you, you should seek out qualified counsel familiar with real estate litigation. We are real estate litigators, and if/when you are ready to proceed, feel free to call or email.

Re: dead beat girl friend

I don't see it as a question of gift-vs.-loan so much as a question of gift-vs.-co-investment. Your ex-girlfriend's argument in court would be that she put up 1/4 of the down payment, and that it was neither a gift nor a loan.

Furthermore, she might win. There is a legal presumption that when two unrelated people contribute to the down payment, and one gets a larger share of title than his or her share of the down payment, the difference is held by the one in trust for the other.

Here, your ex would argue that she put up 25% of the down payment, but got 0% of the title, so that, while you hold 100% of the record or legal title, 25% of that is held in trust for her, and she can demand that you convey her a 25% share of legal title at any time. This principle is called "purchase money resulting trust."

In court, there is a rebuttable presumption that the co-payment is a gift IF the two buyers are closely related, e.g. father and son or husband and wife. However, where the parties are unrelated, e.g., boyfriend-girlfriend, the presumption goes the other way, so if you testify "gift" and she testifies "not a gift," the presumption of "not a gift" would probably dominate, and you'd lose.

Sooooo, your chance of winning in court, if this issue goes that far, will depend upon you having some solid-enough evidence that the $10,000 was a gift to you to overcome the legal presumption. This could be in the form of some letter or note she wrote to you, expressing desire to make a gift. It could perhaps be in your mortgage application, where you discussed the source of the down payment.

Or, maybe you'll be lucky, and her lawyer won't know about purchase money resulting trusts.

In any event, when you try to settle this out of court, keep in mind that your case may be pretty weak unless you have convincing proof of the money being a gift.

By the way, if she is adjudged to be a 25% owner, you may be entitled to claim certain costs and expenses you've paid against her share, so even if she is awarded a 25% interest, the calculation of who gets what from sale proceeds only begins at that point.

I should also point out that trying to sell the house before straightening out her claim may get you in worse legal trouble, as you may be committing a fraud or breach of trust.

Re: dead beat girl friend

You need to commence an eviction proceeding, start by giving her notice. There are certain procedures for evicting someone in your home. Call me for consultation or we can handle this for you.