Legal Question in Real Estate Law in California

I put down all the equity cash...he wants half

I purchased a home with a cohabitant. I put down approx. $20,000. I allowed him to take title as a joint tenant. In addition, I let him put a second mortgage on the house to pay off his debts. Five years later he left. I am now paying both loans, and he has let one year go by before he would agree to settle our financial arrangement. When he left, there was no equity beyond my original $20,000, but during the extra year, the equity has gone up about $8,000. However, the cost of maintaining the home cost me $3,000 for that year, not to mention the taxes $1,400/yr and the insurance $500/yr. He wants me to take over his $6,000 debt from the second mortgage and pay him $4,000 in cash to boot. Can he do this? He has not paid anything toward the house since he left. He will essentially be getting $10,000 from me without investing a dime. Would my $20,000 be considered my sole and separate property, or would it be considered part of the joint tenancy?


Asked on 11/20/00, 12:27 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: I put down all the equity cash...he wants half

I am going to start out by saying that you need hands-on legal assistance, and the sooner the better. Without reviewing all the documentation covering your situation, I can only make a few general comments:

First, it may be important whether you are really joint tenants or whether you might be construed to be tenants in common. Many non-lawyers use the term 'joint tenants' to refer to all forms of co-ownership of real estate. In fact, most unrelated co-owners hold as tenants in common, although joint tenancies are sometimes created. You are probably better off if it is a tenancy in common.

Second question is whether you had any kind of contract -- even an oral contract -- covering your relationship and what would happen if you split.

Third area of questioning by your lawyer would dig into whose credit your lender(s) relied upon and how the loan documents are executed....do they say "I promise to pay........" or "We promise to pay......" etc.

There is a little-used legal principle called "purchase money resulting trust" which can be used to restore ownership to the person that actually put up the purchase money when property is taken in another name than that of the person putting up the money. If you put up all the down-payment money, his "ownership" can be deemed held in trust for you.

I have some experience in handling these problems and would be willing to give you a free initial consultation; call or e-mail me if you wish.

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Answered on 11/28/00, 2:27 pm


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