Legal Question in Real Estate Law in California

When X and Y, individuals who aren't married to each other, co-own property as tenants in common, a creditor of X can file a lien against X's interest in the property, but not against Y's. Also, a typical creditor would be inclined to look elsewhere for collateral, since half interests in most properties don't enjoy ready marketability after a foreclosure. As to selling upon completion of remodeling, this can and probably should be covered in a contract between the two co-owners, and such a contract could be enforced like other business contracts. In addition, however, any co-owner of property can bring a "partition action," a specialized kind of lawsuit that asks a court to un-do the unhappy co-ownership by requiring a sale of the property and a division of the proceeds of sale between the erstwhile owners. The court will hold a hearing on how the net proceeds of sale should, in fairness, be distributed. Percentage ownership according to title records is just one factor. The court can and will consider other contributions to the cost of ownership such as who made the down payment, the mortgage payments, paid for repairs, property taxes, insurance, etc., and who collected rents from third-party tenants without sharing the net proceeds.