Legal Question in Real Estate Law in California

Re: Ownership of Real Estate: Co-Owner no Longer Paying Mortgage

No. And in fact, if/when the property is sold, you will need her signature on the grant deed (in order to transfer to a new owner), and technically, you will owe her a share of the sale proceeds (the amount of which is determined by a variety of factors).

If she wants a share of the profits, she can force a suit to compel you to distribute them to her. Hopefully, you have an agreement with her (in writing) that she has no further interest in the property or its proceeds.

This is a sticky situation, though one that is far too common.

If you need help, let us know.

Good luck.

Re: Ownership of Real Estate: Co-Owner no Longer Paying Mortgage

If a stern letter from an attorney does not work, you may have to file a partition action. This does not mean that you have to complete the lawsuit. Sometimes, the filing causing reconsideration of the problem owner. Please call me if you have any questions.

Re: Ownership of Real Estate: Co-Owner no Longer Paying Mortgage

When the two of you acquired the condo, your respective shares of ownership may have been established by the proportion each of you contributed to the up-front acquisition costs (deposit, down payment and closing costs), without regard to whether the title reflects equal ownership. Keep that in mind if it favors you.

You don't say whether the two of you collaborated on the listing agreement, whether she will sign the deed and other closing papers if and when you get an acceptable offer, nor whether you'll be able to agree on an offer for less than the listing price as is likely to happen in this market. If you have a written agreement on these matters, and are still able to cooperate on business matters, then you're in a much better position.

There is no law to remove her from ownership for not making payments. In fact, since you are the sole borrower on the loan, you would have a hard time even proving that she breached a contract to contribute to the payments, absent a written agreement.

There is a law allowing an unhappy co-owner to force the break-up of the co-ownership by physical division or sale. It's called a partition lawsuit. Nowadays, most partitions are by court-ordered sale and division of the net proceeds according to legal and equitable principles.

You are trying to do the same thing voluntarily, which should save you time and money. Keep in mind that if a court were supervising partition by sale of your condo, it would order her to reimburse you for your excess outlays for mortgage payments in the past 3 months, and maybe some other items, and would not deduct "rental value" for your sole occupancy period.

If you contributed more to the down payment than the title reflects as your share of ownership, contact me and ask about purchase-money resulting trusts.