Legal Question in Real Estate Law in California
My former girlfriend and I bought a beach condo this year and I remodeled it for 35k. We did this because we were having a child and we wanted to have a place for the kids to go to the beach and have an investment property to pass along to them. Now that our relationship is over she wants out of the deal (she is 50% owner although I spent 28k on the remodel of my money). Do I have to agree to sell the property because she wants out? She made a commitment and I think she should see it through but what are my options? I don't really have the money to buy her out because of the 28k in debt I just incurred and I even spent 5 weeks of my vacation this year performing all the labor. Any advise would be greatly appreciated.
1 Answer from Attorneys
I would advise cooperation over stonewalling. There are methods provided in the law for an unhappy co-owner of property to force its sale through a court proceeding called "partition." You want to avoid the legal costs and uncertain financial results of a forced sale if at all possible. As your question suggests, there are (at least) three out-of-court settlement possibilities: (1) she buys you out; (2) you buy her out; (3) the two of you agree to list and sell the property and split the proceeds. If it goes to a court-ordered sale, the court will take evidence on who paid the purchase price and who paid for the improvements, repairs, taxes, insurance, etc., and will try to make the fairest possible apportionment of the net proceeds of sale. Any private, out-of-court settlement should take this into consideration and do likewise to the extent the parties are able to reach agreement on things like "sweat equity." One possibility is to hire a trusted third party to act as a "rent-a-judge" and arbitrate what division of the sale proceeds is fair. Get any agreement for arbitration in writing and use someone with appropriate knowledge and trustworthiness.