Legal Question in Real Estate Law in California

Re: Parent's Gift - Four Owner Home

Question #1: If the ultimate sale is voluntary, you will have to negotiate with the non-contributing siblings for your repayment. Whether you are entitled to reimbursement or not depends upon the nature and necessity of the investment. The more necessary, the better the legal (and moral) argument for reimbursement. It is better, of course, to spend money only upon a written contract calling for reimbursement, but the law of co-ownership recognizes a right to reimbursement for necessary expenditures under many conditions.

Question #2. Answer is probably. Among co-owners, there is generally a right to "partition" the property, which usually involves a lawsuit by one or more owners against the others asking a court to order a sale and division of the net proceeds. If there is a dispute over division of the proceeds, the court will appoint a referee to examine the equities of the situation and recommend how the proceeds ought, in fairness, to be divided. This is part of the answer to Question #1, of course.

There are defenses to a partition action, such as when the party seeking partition has waived his right by entering into a right-of-first-refusal, option, lease, or some other agreement with the owner that doesn't want to sell.

An increase in value is difficult to show, because you probably lack a base-line appraisal (at the former condition). At a partition trial, you would establish this like any other fact through evidence and testimony, including the paid bills and receipts for the work done, expert testimony (appraisers, the contractors who did the work, etc.). The impact of conflicting testimony on judges, juries or referees is difficult to predict. Your case is probably stronger with respect to essential repairs (fix leaky roof) than for luxury improvements (add swimming pool).

The final question regarding money being held seems to be an issue that should be before the probate court, and probably has nothing to do with a partition of real property, but I suppose it is an issue that could be raised as a counter-claim if this brother sues for partition.

Re: Parent's Gift - Four Owner Home

you have a series of questions that might be more effectively and efficiently answered via email. if you would like to email me directly with your questions and concerns, i would be more than happy to give you a free evaluation of your rights and how you might like to proceed regarding these matters you raised in your question(s).

Re: Parent's Gift - Four Owner Home

It sounds as if you are each equal owners. There fore, you each have the right to possession of the property, and are not required to pay rent.

If one or more of the owners wants the house sold, they can force the sale through a Partition Action in court. That, of course, costs money. The other alternative is for the other two to buy out the two that want to sell.

You may be able to recover what was paid for improvements, but not necessarily the value of the improvements.

Regarding the other money, you may have difficulty proving that the money was the parents money being held by the other person. you would be amazed at how many times "It was a gift" will come up.

Good luck, and let me know if you need more help.