Legal Question in Real Estate Law in California
Quit claim deed
We would like to refinance and also consolidate our bills. But there is three owner in this house. Me my wife and my brother in law. Our name is on the title deed all read as equal joint tenant. But we can't refinance because, my brother in law doesn't want to sign the quit claim deed. Me and my wife are trying to buy him out through refinance, by giving him his share of equity which is 1/3. But he's claiming half 1/2 of equity otherwise he will not sign the quit claim deed. Is there a way that we can refinance and also buy him out without him signing the quit claim deed. We want him out of the title. If we take him to court, will we win. Do we need an attorney. what are the steps we need to do. We need help.
Thanks
Shirley
4 Answers from Attorneys
Re: Quit claim deed
We can try to help with your negotiations. If that does not work, a partition action has to be filed. Please contact our office at 714 363 0220 for review of your documentation and for consultation.
Re: Quit claim deed
It is unusual for three people to be equal joint tenants, especially when two of them are a married couple, but not impossible. The answer as to whether this is a 1/3 - 1/3 - 1/3 joint tenancy or a 1/2 - 1/2 joint tenancy lies in the facts surrounding the creation of the joint tenancy, and in particular the language on the deed or other instrument (will, trust) that set it up. What I'm saying is that you must examine the possibility that your brother-in-law is correct. Many times, we find joint tenancies where the marital community of X and Y holds 1/2 and Z, another relative, holds 1/2. In effect, X then owns 1/4 and Y owns 1/4, but as their community-property interest, with the community being the joint tenant.
I could give you a better answer if you send me the exact wording on the deed, and also describe exactly how the three of you acquired this property.
Once a lawyer explains the ownership to the three of you, the misunderstanding may disappear and there will be no need for a suit. This does not mean everyone will be happy with the answer, but at least the question of percentage interest will be resolved. A consultation for a legal opinion should not cost you more than an hour of attorney time. It would be preferable to use someone in the county where the house is located so that if a trip to the recorder's office to view the deed or other recorded instruments were necessary, it could be easily and inexpensively done.
Finally, co-owners' disputes (other than marital disputes) are usually resolved, when necessary to go to court, by a special kind of lawsuit called a 'partition' action. This asks the court to order the property divided. Nowadays such a division is usually accomplished through sale and division of the net proceeds, rather than splitting into two (or more) parcels. You may not want to sell and move, to be sure; but the mere filing of the suit usually encourages the reluctant co-owner to settle out of court by selling his part interest voluntarily or doing something that resolves the dispute.
Re: Quit claim deed
I'm interested in your statement that if you take your brother in law to court you will win. How did he originally get on title? Rather than paying him off, maybe you want to file a partition action to void his interest. If you don't resolve it soon, the problem is only going to get worse as his equity increases. Give me a call if we can help.
Re: Quit claim deed
This is a great example of the problems people encounter when they do their own planning and legal work. You may win in court, you may not. But, that is the only way you can force the issue. I would not handle this pro per (without an attorney). Good luck.