Legal Question in Real Estate Law in California

escrow money

I am 50/50 ownner of a house with my girlfriend. Joint. We split up. House is on the market. She has moved out and I have been paying for the loan and upkeep. Can I get my money i have paid at the close of esscrow? What do I need to do?


Asked on 10/11/07, 5:56 pm

2 Answers from Attorneys

OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: escrow money

If she is on the deed then you will need to prosecute a partition action. Contact me directly.

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Answered on 10/11/07, 6:06 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: escrow money

At the close of escrow, the escrow holder will distribute the proceeds according to jointly-agreed-upon instructions from the buyers and sellers. You can't open escrow without giving the escrow holder written instructions; these can be modified with everyone's consent during escrow, but if you and your ex can't agree on what instructions to give an escrow holder, there will be no escrow.

More often than not, escrow holders get their instructions as part of the preprinted contracts used to make and accept offers in residential real-estate deals. Such contracts generally call for distribution of the net proceeds of sale according to the way the sellers held title. If you were two joint tenants, that would be 50-50.

If you want reimbursement, you need to negotiate with her and get a side agreement in writing, instructing escrow to reimburse you the extra funds representing your excess contribution (over 50%) to shared expenses such as mortgage payments, property taxes and insurance.

By the way, you are entitled to such reimbursement, and if the money were being handled by a court-appointed referee as would be the case (usually) in a partition lawsuit, such adjustment would be part of the process and would be so ordered in the final judgment. Further, you don't have to pay her rent; either or both of you can live in the house without owing the other rent.

If you can't get her to agree to instruct escrow as to a specific dollar amount of reimbursement, you will probably have to resort to the courts in some way or other; maybe small claims ($7,500 max. claim) would work for you.

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Answered on 10/11/07, 6:50 pm


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