Legal Question in Real Estate Law in California

Re: partner refuses to pay fair rental value on home

do not mean to rub salt in you're already financial wound but isn't a time you thought about getting an attorney to protect you in a real estate transaction???? This could of all been avoided had you properly planned ahead. Now, but help yourself greatly by getting an attorney who has an expertise in real estate/business to mop up for you. You have numerous rights but they all involve potential litigation. Hopefully, when you get an attorney who sends the "right correspondence" to your now new partner she will see the light. At worst you can file a partition action to either have her by you out, by her out or sell the property. Better that you should be able to now renegotiate with her in terms of terms and conditions of ownership that are realistic. Hopefully this solution to the problem will not mean to you have to go to court as the cost becomes substantially higher, both in real money as well as emotions. I've been practicing real estate/business law in the San Francisco Bay Area for over 30 years. If you wish to consult with me I am at 925 -- 945 -- 6000.

Re: partner refuses to pay fair rental value on home

I'm probably missing something here, as the given facts are kind of sparse, but see if this fits your situation:

X and Y buy a house together as an investment. Y sells his interest to Z. Z moves in to the house. X asks Z to pay rent. Z pays, but only half the amount X things is fair. X is unhappy and thinks about legal remedies, including suing Z.

The answer is that both X and Z are co-owners, almost certainly holding title as tenants in common, and most probably each with a 1/2 interest. X and Z BOTH have the right of possession (unless there is an agreement between them to the contrary, and Z could be bound to an earlier contract between X and Y).

That means Z has the right to live in the house without paying X any rent at all.

At the same time, X can live in the house without paying any rent at all to Z.

In effect, as co-owners, X and Z are each other's roommates if both choose to exercise their possessory rights.

The outcome is a little different if X (or Z) rents to a non-owner. X would be entitled to one-half of the rent received by Z, and vice-versa.

Co-owners can, of course, contract with each other respecting the right of possession. X can rent his interest to Z, or vice-versa, thus giving up the right of co-possession during the rental term. However, proving the existence of such an agreement could be difficult, and unless it is in writing, the term couldn't exceed one year, as longer-term contracts respecting possessory rights in real property must be in writing to be enforceable.

All in all, unless there is an agreement, your co-owner PROBABLY has the right to live in the house without paying a dime of rent. So do you.

Again, this analysis is based on my interpretation of limited facts and other facts, such as a written agreement, could very much change the legal analysis.

The way to un-do an unhappy co-ownership situation, if nothing can be negotiated, is to file a lawsuit for 'partition' of the ownership. A court will direct a sale of the property and fair division of the net proceeds. Often, bringing a partition suit will cause an uncooperative co-owner to bargain in good faith for an out-of-court settlement.

Please e-mail me with any missing facts and I can give you a further analysis and explanation.

Re: partner refuses to pay fair rental value on home

You probably need to have a partition action filed. Please call our office to set up an appointment so that we can review your documentation and provide you with consultation.

714 363 0220

Re: partner refuses to pay fair rental value on home

You need counsel. You may need to sue for partition and to properly protect your financial interests. Call to discuss all. Need much more info to properly counsel you. Don Holben 800-685-6950