Legal Question in Real Estate Law in California
I have a property with my brother in India, in which he did not invest at all. I want to sell it but my brother is demanding half the amount for his signature on the sale deed. What I should do ? Will a "living trust" or some other type of activity help ?
3 Answers from Attorneys
Is the property, or your brother in India? If the property is in India, you will have to consult with an attorney in that country. I will assume, however, that the property is here in the US and your brother is in India. About the only thing you can do, short of negotiating some sort of deal with your brother, is to file suit to partition the property. The problem you face, however, is that the pressumption will be that if you hold title as 50-50 owners, that he is entitled to 1/2 of the proceeds. Simply because you put unequal amounts of money towards the property does not necessarily change the ownership percentages you established when you bought it and vested it as equal, co-owners. Consult with a local real estate litigation attorney about an action to partition the property.
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I disagree. The proper legal action is a lawsuit to quiet title in yourself. Your suit would allege that, despite how legal title is held, you are the true beneficial owner of 100% of the property. The legal principle is that ownership of real property follows contribution to the purchase price, and not necessarily what the deed or record title may say. This principle carries the legal name "purchase-money resulting trust" and declares that if you put up 100% of the purchase money (down payment) you are entitled to 100% equity ownership, and someone who got 50% (or any other percentage) of title holds it as a mere involuntary trustee for you, and must deed it over to you upon demand. The best way to make such a demand is to sue to quiet title in yourself.
A quiet title suit alleging a purchase-money resulting trust will not succeed if the defendant can show that his part ownership was intended to be a gift. This might be the case here, so you'd need to see if there is any evidence your brother can present to the court showing that you made a large gift to him.
The role of loans made to assist in the purchase is generally not important. If you put up 10%, or even 5%, in cash, and a bank lent the other 90% or 95%, you'd still be able to assert a claim for 100% ownership against anyone else who got "on title" for whatever reason (except your gift) at the time of purchase.
Please contact me if you are interested in exploring a possible lawsuit for quieting 100% of title in yourself. I have won such cases, including appeals from a judgment in my client's favor.
Is your brother in India, or the property in India? If the property is in India, you need to repost this question for a lawyer licensed to practice in India to respond to.