Legal Question in Real Estate Law in California

I have a joint mortgage with my sister-in-law. She has stopped paying her portion of the mortgage and wants out. I know the best thing to do is to refinance the house and remove her name from the title. My wife and I are able to keep up the payments so refinancing shouldn't be a problem.
So here's the problem. My sister-in-law wants her portion of the money she put into the house returned to her before she moves out. Is it reasonable and do I have any legal rights to deduct her portion of "rent" from the amount owed to her as long as she continues to live in the house without paying, basically free rent?
As a reference, I cover the property tax in full so she doesn't pay any of that nor does she file it in her tax return because it is better for me since I have a family with child. Don't know if this affects anything.

Asked on 10/26/11, 12:26 am

Anthony Roach Law Office of Anthony A. Roach

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If she is on title, she has the right to occupy the house. You can't charge rent for a tenant in common living in the property.

Answered on 10/26/11, 4:45 pm

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