Legal Question in Real Estate Law in California

Hello,

I have a question?

Long story short, My husband, brother and I purchased a 4bd 2 ba home in 2005 as partners, but didn't have it writing. All three of us are on the loan and title of the home. However, after the first year my brother decides to move out and asks us to buy him out for $5,000, once again we didn't put it in writing... we also couldn't afford to pay him at the time, we were only able to give him $500 at the time. Here we are in 2012 and my husband and I still live in the home and have paid for the mortgage and maintenance of the home. It's been 6 years since he's lived here and contributed to the home maintenance and mortgage. We recently received a letter from our lender stating if we successfully Short sold our home , they would pay us a cash incentive of $20,000.

Here's the Question.....

Being that he hasn't contributed or lived in the home for over 6 years, is he entitled to any of the incentive monies?

Also, is he obligated to pay back his part of the mortgage to us, being that he Breached Contract?

Thank you in advance,


Asked on 8/01/12, 12:23 am

1 Answer from Attorneys
Anthony Roach Law Office of Anthony A. Roach

You all owe each other a confusing array of money. The worst part of your post is that nothing was in writing. So you have a contract to buy his interest in real property, which was not in writing, which violates the statute of frauds. But you also admit he was not paid, and he is still most likely a tenant in common. (You use the term partners, but you either own it as a tenancy in common or a joint tenancy. I'd have to look at how you took title - meaning the deed - to know more.)

There are other rules depending on how you hold title, regarding whether or not you have a claim for contribution against him for payments, taxes, etc.

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Answered on 8/09/12, 4:32 pm


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