Legal Question in Real Estate Law in California

Re: Legal Ownership

A trust deed is the deed securing the mortgage. A grant deed has to do with home ownership. If the grant deed is in your husband's name only, then he can sell the property without his sister's signature.

Is she entitled to something? Perhaps legally, definitely morally. By her name being on the loan, it could have caused her issues with her credit score, etc. Perhaps she is entitled to an amount that would be equivalent to the difference between the interest your husband would have paid if he could have obtained financing on his own and the amount he received with her help. Nothing in life is free.

Re: Legal Ownership

Your husband is the legal owner. Absent an enforceable agreement to share ownership (between husband and sister), the sister has no claim to the property.

Of course, that may not stop her from suing. She will allege that they agreed that in exchange for her agreement to be liable on the loan, he would give her a piece of the property. Such an agreement, however, to be enforceable, would have to be in writing.

It's probably time to remove her as a liable party on the mortgage. Husband might consider contacting the mortgage company to ascertain what steps he could take to do this; or in the alternative, he could refinance and remove her in the process.

If this leads to litigation, please feel free to call or email. We are real estate litigators and would have happy to provide you with a no charge consult.

Good luck.

***No Legal Services or Attorney Client Relationship - Although this email may provide information concerning potential legal issues, it is not a substitute for legal advice from qualified counsel. You should not and are not authorized to rely on this email as a source of legal advice. Until a formal Retainer Agreement is executed, any communication between you and The Guerrini Law Firm cannot create any attorney-client relationship between you and The Guerrini Law Firm.***