Legal Question in Real Estate Law in California
My parents jointly financed...
My parents jointly financed a new home in the early 90's. The family lived in it for about 10 years. After retiring my parents moved out and left my brother and his wife to rent the house for them to pay off the remaining loan. To their knowledge the house was still being rented but they recently discovered that the house was sold by my brother and his wife without their knowledge. My parents are elderly so are not sure what transactions they could have been talked into doing. How can I find out what transactions could have taken place for my brother to legally sell it. Also, depending on the transactions, what legal rights do my parents and/or my other siblings have to this property and the money that was made from the sale if at all?
2 Answers from Attorneys
Re: My parents jointly financed...
The starting point is to gather and confirm facts. This would include a search of documents recorded with the county recorder of the California county where the home is situated.
The presence or absence of recorded deeds (going back to the early 90s, or course), the way those deeds show title to be held, the capacity in which the grantors have signed, evidence that someone acted as a trustee or attorney-in-fact, liens, and other factors will help in analyzing what happened.
One suspects some kind of fraud, or undue influence, but there may be a perfectly innocent expanation.
Adverse possession can probably be ruled out, since the brother's possession was permissive and not adverse; however, there could have been a fraudulent claim of adverse possession by a tenant.
It would be important to review how title was vested when the house was acquired in the early 90s. I would also check the property tax rolls to see whether the taxes have been paid, and by whom, or whether there may have been a foreclosure for nonpayment of taxes (or for some other reason).
It seems to me that your brother has been very lax in handling a responsibility he undertook, and if your parents and other family members have been harmed thereby, he might be liable to them under a breach of trust or breach of fiduciary duty theory.
If wrongdoing can be established, a court can fashion a remedy that will either restore the property to the rightful owner(s) or cast a net over the ill-gotten profits for the benefit of the injured owners.
If the house is in a county not to far from me, I'd be pleased to discuss the situation further if you contact me directly with more details.
Re: My parents jointly financed...
You should conduct a title search. A title search will review the history of property transfers. It will show how your brother obtained title to the property. If the property, or your brother, are located in Southern California, I have access to property databases and may be able to gather information for you.
Your parents may have a claim for elder abuse against your brother. An elder abuse claim would be in addition to other claims, such as breach of contract or breach of fiduciary duty. There are severe penalties for elder abuse.
Again, if the property is in Southern California, feel free to email or call.