Legal Question in Real Estate Law in California

Re: Two Properties

OK, starting from the beginning of your question. Your statements "both own" and "the deed... under my name" seem inconsistent. There are situation where two people own a property and only one name shows on the deed (or, more accurately, the title), and vice-versa. However, whoever is "on title" at the recorder's office is considered the legal owner, but someone else may have a beneficial or equitable interest in the property and be entitled to be placed on title. Most non-lawyers don't know about this, so I wonder what your explanation is for why you feel your sister is a co-owner if her name doesn't appear on the title.

Next point, verbal agreements to transfer interests in real estate are generally unenforceable. I can think of at least a half-dozen exceptions, and none is likely to apply here, but I can't be sure on skimpy facts.

Next, what payments can't your sister make? If she isn't a borrower on the loan, she shouldn't be making payments on it. If she really is a co-owner of the house, even a 1% co-owner, she doesn't have to pay rent. (She might, however, rent YOUR interest in the house from you so she doesn't have to share possession with you, but your question doesn't suggest this is the case).

Next, if you are the sole owner as per the recorded title, you could perhaps sell the house without her moving out. She would become a tenant of the new owner. (However, I can see some practical difficulties here. Although buyers of income property like to buy property that's fully leased out, if you sister is in fiancial difficulty she's not an ideal tenant, and if she thinks she's a co-owner, that could make a sale difficult whether she is or not).

Finally, making payments on a loan does not create or prove ownership. At most, it creates a right to be reimbursed.

Due to the LawGuru answer length limit, I will complete my answer in a follow-up message.

Re: Two Properties

This is a follow-up to my previous answer, where I was closing in on the LawGuru 3000-character limit.

The proper advice for you depends, I think, on the nature and strength of your sister's claim to some of the beneficial ownership of the house.

If her claim is relatively weak, I would probably recommend considering starting with an unlawful detainer (eviction) process. This would be the fastest way to get her out of the house; then you could retake possession, get it fixed up, find a quality tenant, and put it on the market without fearing that the place will be a mess or that your sister will tell prospective buyers that the property isn't for sale or otherwise squelching buyer interest. During this process, I would suggest filing a quiet title suit to remove any possible adverse claim.

If, on the other hand, your sister has a sufficient legal or equitable interest in the house to throw a monkey wrench in an unlawful detainer action, i.e., she can raise a question in a UD judge's mind that she has an ownership interest and is not just a deadbeat tenant, you'll need to start with the quiet title action.

Finally, a lawyer with full access to all the facts and an opportunity to research the title and other factors might come to a different conclusion.

Pleas contact me if you'd like a free further analysis.