Legal Question in Real Estate Law in California
if a husband signs a contract stating a purchased property will not be used as a rental, is his spouse legally bound by his contract even if she didn't sign it?
2 Answers from Attorneys
I would suggest you read the entire contract carefully to determine what it requires and what the results are. If this is a loan, there are often provisions whcih allow call of the loan if the representations are not complied with. He may have responsbility for compliance even if a co-owner elects to use it as a rental. By the way, if you are not an owner, how could you rent it? You do not own it. If you are arguing it is community property, you may be bound by his actions on behalf of the community.
As a result, the answer to your question depends on a number of factual issues not disclosed in your question. Further, the lender (if this is a loan) may have remedies under the contract. Finally, if this is a subterfuge to get owner occupant interest rates on an investment loan, you may have issues in This gratuitous response does not create an attorney client relationship.
The advice provided herein is generic, may not apply to your circumstances and is not to be relied upon in your actions. An attorney client relationship is created only upon execution of an engagement letter hiring me or my firm. misrepresentation to the lender.
I suggest reading the contract, because the husband may have signed on behalf of him, his heirs, his family, and his assigns. Even without a clause, if the wife is not on title, and rents the property, she would be deemed to be acting as the agent of the husband, and is still bound by the terms of the original contract.