Legal Question in Real Estate Law in California

Re: Debt

I am not clear on the circumstances. Contact me directly.

Re: Debt

Your stepfather likely is a beneficial half owner of the property, and notwithstanding that your name alone appears on the title records down at the courthouse, he could be suing you to force you to quitclaim a half interest to him instead of for a refund of the money he advanced you.

Of course, if the house has declined in value, he may be better off asking for the cash instead of the half interest. Technically, however he is entitled to a half interest, but NOT to the cash!

The reason is that when someone puts up half of the down-payment money but received none of the title, it is presumed that the personwho got the entire record interest holds that interest in trust for the payor. The trust is called a purchase-money resulting trust. You are the involuntary trustee of such a trust, and your stepfather is the beneficiary.

Your defenses against a claim for half the title would include arguing that it was intended, at the time, to be a gift. A gift would be presumed, subject to rebuttal, if it were a father-to-son transaction; since a stepfather is involved, the court would probably need to inquire into the closeness of your relationship at the time and the motives behind the deal to determine whether there is a gift of the half interest or a trust in his favor. As to defenses to a suit for restitution of the money, I would say the inquiry begins with the quality of his evidence and whether the statutes of limitations (too stale a claim) or frauds (deal must be in writing) gives you a defense. That the money were a gift would also a defense, if supported by evidence.

Neither lack of a writing nor passage of time would be a defense to a suit to recover 1/2 title under a resulting trust theory.

The proper charges by the stepfather and your available defenses all are dependent upon additional facts, and the quality of the evidence, but the above is a general outline.

Please feel free to contact me directly to discuss this further.