Legal Question in Real Estate Law in California

Re: Placing domestic partner on the title

You should take care of this in an agreement between the two of you. It can be simple, but should cover the necessary stuff, including mortgage deductions, ownership, contributions, etc. For your partner to take any mortgage deduction, his or her name would have to be on title, and I wouldn't do that without a property agreement between the two of you.

Re: Placing domestic partner on the title

A real property transactions involving the purchase of real estate should be in writing. A written agreement stating the rights, duties and obligations of each party should a default or dispute arise is very important. When you meet with an attorney to draft your agreement you should have a writing containing your concerns about the transaction. The attorney will incorporate your concerns into the written agreement and additional matters learned in the practice of law.

Re: Placing domestic partner on the title

Well, yes, of course there are drawbacks. The chief one is that your romance will go sour and, in the ensuing dispute over the property, you will not even have the benefit of the community property laws. Even if your relationship lasts the rest of your lives, a probate court will at some point have to untangle the various heirs' and claimants' interests.

You need a written agreement, preferably notarized to it can be recorded if that sooner or later becomes necessary, covering your deal in all details, including:

(1) Who will make the down payment;

(2) How will title be held (I recommend as tenants in common);

(3) Whose credit is relied upon?

(4) Who is primarily responsible for mortgage and tax payments, insurance and maintenance?

(5) Who is allowed to live in the house? What about guests? What if you break up?

(6) In the event of a dispute, will the property be sold? How will the net sale proceeds be divided? Will the division be different if the property is sold for a loss?

(7) Does anyone get reimbursed for 'sweat equity' (personal labor applied to remodeling, etc.)? Anyone get equity?

Remember you do not have the protection of family law. You will be treated in court as business partners and ordinary business and contract law will govern your rights.

Re: Placing domestic partner on the title

You should have a written agreement, such as a co-ownership agreement, which spells out each persons rights, obligations and what to do in case of a dispute.

I have prepared a number of these, and have also handled some nasty cases where there wasn't such an agreement. I make more money with those without a written agreement.

Let me know if you would like one prepared. Could be handled over the phone an fax.

Re: Placing domestic partner on the title

The owners on title can agree upon how the interest, property taxes, and any other legal deductions may be divided up. However, most important, you should have an attorney prepare an agreement between you what happens to the property upon death or dissolution. If there is no agreement, the property could be partitioned and litigation expenses high.