Legal Question in Real Estate Law in California
Quit claim deed
I just received a check made out to myself and the past co owner of my home. I bought here out two months ago and she signed a 'quit claim deed' signing the house over to me. The check from the past mortgage holder is for left over impound monies. Is the past co owner entitled to the funds?
2 Answers from Attorneys
Re: Quit claim deed
Maybe. That depends on what agreement you made when you bought her out. The quit claim deed transfers any ownership interest in the real property, but does not affect rights in personal property, like a check or impound account.
You need her signature to cash the check. Talk to her and see if she will sign it with or without compensation.
Re: Quit claim deed
Your question is like asking, "My spouse and I are getting divorced, who is entitled to the grand piano?"
The answer depends upon who was making the mortgage payments and whether the two of you made any property settlement agreement, formal or informal, when you split up.
In the absence of a prior agreement addressing the issue, whether directly or by inference, I would guess a court would award the money in proportion to your relative contributions toward the mortgage during the tax or insurance period during which the funds accumulated in impound. If you made equal payments, split the refund.