Legal Question in Real Estate Law in California

Re: home buying

First, as to the question of your rights. You are negotiating a business deal. In a contract negotiation, the concept of "rights" is pretty much limited to the right to negotiate for the best possible terms for yourself, the right to expect everyone else involved in the negotiation to conduct him-or-herself ethically, and the right to walk away from the negotiations if you are ultimately unsatisfied with the outcome.

Next, as to whether the currently-proposed terms are fair to you, I would start out by saying that there are various quantitative methods that MBAs learn and many businesses apply to the evaluation of deal scenarios. This is not a complicated transaction, and I could probably analyze the proposed deal for you from a fairness standpoint in a couple of hours. One missing piece of information here that obviously would affect the outcome is what assumption would be made as to the weighted average expected date of break-up and sale. Since the terms require you to make higher on-going payments, a longer-term relationship is less favorable to you (from a financial analysis standpoint).

Remember that the deal can come to an end not only due to your breakup but upon the ultimate death of one or another of the parties, so assuming a break-up does not necessarily imply that your relationship will go sour.

If I understand the proposed terms, it looks as though the parents are "double-dipping" by expecting 1/3 of the equity in addition to the return of their principal, with interest. However, your description of the parents' rols is open to other interpretations.

I commend you for realizing that a written contract between all the parties is absolutely essential. Sooner or later, this deal must be unraveled, whether voluntarily, in a civil suit for partition, in family court should you later marry, or by a probate court when an owner dies. A written agreement will furnish the necessary guidance as to the parties' agreement, possibly many years later.

I would also suggest serious reflection on whether you want to get into a deal like this at all, since your question obviously shows misgivings and contention. Be sure to do this based on favorable business terms as well as based on your personal relationship.

Re: home buying

You are getting screwed over. First of all, I cannot tell you how utterly FOOLISH it is to purchase a home with a "boyfriend"; why bother? It goes without saying that you two will not be a couple forever, or else you woudl be getting married; that said, when you split up, you are setting yourself up for a legal nightmare. Buy the home yourself--you make enough income to do so. You may pay more in interest, but you will get 100% of the tax deduction when you do. You can charge your boyfriend rent, or he can try and get his own house. Remember, without your income, neither your boyfriend, nor his parents would be able to get a piece of this pie.