Legal Question in Real Estate Law in California
Equity Share
My husband and I moved into a home with my mother. At the time our credit was bad and she took out the loan. The oral agreement was we would share the equity if the house was sold. We gave her 775.00 towards the down and she put in 8,000. We have paid most of the mortgage 800.00 out of 1,137.00 for the past 7 years and 50% of the insurance. My husband and I have installed sprinkler systems and have added extensive landscaping. We have paid for and installed ceiling fans, kitchen flooring, bathroom flooring, garage door opener and paid 1800.00 for a new air conditiong unit. We also paid 50% for the new dishwasher and new oven. Now my mom decided to sell HER house and has told us she will give us 30,000. The profit on the house will be about 160,000 and we feel we are getting ripped off. Do we have any legal recourse?
6 Answers from Attorneys
Re: Equity Share
First of all the really notice to your mother. Secondly, do the math, what you feel you are specifically entitled to base upon a down payment of approximately nine percent in the payment out of the proceeds of approximately 19 percent. No written contract, very problematic even though an oral contract is valid. Except in California any contract for the purchase of property or evolving property must be in writing and that is a defense that she will have to your claims. How much of court will deal with that defense and throw out testimony as to your oral contract is something no attorney can answer. Either practicing real estate law for over 30 years in San Francisco Bay Area and if you wish to contact me I am a 925 -- 945 -- 6000.
Re: Equity Share
Unless you are on title, which I am quesing that you are not, you do not have a partition action and your remedy does lie in contract law and tort law for fraud and deciet. You must act quickly to stop the sale to a good faith bona fide purchaser. Call me directly at (619) 222-3504.
Re: Equity Share
I believe you can pursue this matter and have a right to portion of equity based on facts you provided. Need more info. Are you on title? What writings do you have re ownership? Do you have documents re your money spent on the property? Call to discuss. Don Holben 800-685-6950
Re: Equity Share
We recently handled a case with similar facts, although I need more information to give you an opinion. If you are on title, she can't sell without you signing. If you are not, you can file a suit for breach of contract (tough) or fraud. Consult an attorney in your area that handle litigation as soon as possible.
Re: Equity Share
Nothing worth pursuing. Sorry.
Re: Equity Share
Yes. You can file a lawsuit against your mother for what is known as "partition." Under this theory you would ask the court to declare that you are joint owners of the property with your mother. Generally you would ask that the house be sold, and that the proceeds, less the expenses you incur in pursuing partition, be divided between you and your mother. You can also include causes of action for fraud and/or breach of contract in your lawsuit, if the facts support those theories.
You should note that you will need to prove the amount of money you gave to your mother, the amount you paid towards the mortgage payments, and the amounts you spent improving the property, paying property taxes, etc. for the entire time the house has been owned. If you have all of this documentation, I would suggest that you take all of the documents to an attorney, and sit down and discuss all of the facts and circumstances to determine whether a partition action would truly be a viable option.
Feel free to call our firm for an appointment at (714) 997-9222.