Legal Question in Real Estate Law in California

Re: Joint tenants

I have some experience in these cases, and here's what I think would happen in court if the matter required full trial. A partition suit would result in a court-ordered sale to a third party, usually through a broker and under ordinary commercial sale processes (not a courthouse-steps auction). The mortgage, sales commissions and other taxes, fees and costs would be deducted. Then, the net proceeds would be distributed in proportion to the equity of the two (prior) joint owners. Under the principle of 'purchase money resulting trust,' the equity might be found to be in proportion to the source of the down payment. In other words, if you put up $2,000 out of $20,000, you would be a 10% equity owner notwithstanding that as one of two joint tenants you had a 50% 'legal' interest. However, in other circumstances, you could be held to be 50-50 equitable owners as well as 50% legal owners. It would depend on your relationship and what the court could deduce about your intentions at the time of the purchase.

There is another important factor, in addition to equitable ownership, that would affect the distribution of the proceeds. The court can, and probably would, look at relative investments of time and money in the property other than down-payment money, and order the payment of cash restitution from the owner who, on balance, put in a disproportionate share.

The entitlement to restitution might be offset by the value of 'rental use' received.

Whether you are better off with a large chunk of restitution or a large chunk of the appreciation depends on the underlying economic facts.

Almost always, parties to a co-owned property situation are better off (both of them!) with a somewhat lopsided out-of-court deal than with the costs and delays of a legally 'correct' but very expensive litigated settlement.

You should put the numbers together based on the foregoing concepts and consider making an offer. You might also consider getting some professional coaching in negotiations, short of having the 'coach' file a lawsuit.

Re: Joint tenants

You could recover 1/2 of the equity in a forced sale of the property (partition action)

Re: Joint tenants

Try to come to some agreement with him whereby he agrees to give you whatever sum you both agree upon, in return for your deeding him your interest. These things are ALWAYS sticky, if both parties do not agree, because the only way to force the parties to "divvy up" is to file suit for partition in court, and the court can order the property sold and determine who gets what, depending upon their contribution and their agreement.