Legal Question in Real Estate Law in California

California is a community property State, and if you did not sign a quit claim deed, you have an interest in the property. I presume that he is listed on title as a married man?

BARRY BESSER

www.besserlaw.com

I disagree with Mr. Besser. Resolving this issue is going to depend on what the source of funds were that you refer to as "extra cash." If those funds are community property, then any property purchased is community property. One spouse cannot make a gift of community property to himself as separate property. If those funds are separate property, however, then his purchase of property is also separate property.

I agree with Mr. Roach.

Mr. Roach is correct. The source of the "extra cash" is what determines whether or not you have a community property interest in the rental house. I write separately to bring up a couple of other points. First, you say he brought his father in on signing title. Your husband does not sign title as a property buyer, the sellers do. So did you mean your husband had the sellers name his father on title along with your husband, instead of you, or do you just mean his father went with him to the escrow closing? While a person cannot make a gift of community property to themselves as separate property, they can make a gift of community property to a third person. If the source of the funds was community property and your husband had his father named as a co-owner by the sellers, he gave away your money. On top of that it could raise tax issues for which you could be liable. My second additional point, is that if separate property of your husband was used to buy the rental, so it is his separate property, if he has to use money from sources other than the rent to pay the costs of ownership, maintenance or improvements to the property, that will create a right of reimbursement to the community if you divorce or for estate planning purposes. So clear accounting of the expenses of owning the rental need to be kept.