Legal Question in Real Estate Law in California
Quit Claim rights for unmarried couple
A house was purchased by an unmarried couple, they
have been together 12 years. The man built a studio,
(which he paid for), in the garage. After several years he
was not working and could not pay his half of the
mortgage. Eventually, he signed a quit claim to the
deed of the house. The woman signed a Notary Public
document acknowledging the man has joint tenant
status and retains his half of the equity. The man is still
on the mortgage. The man has since resumed
payment of his half of the mortgage. The couple is now
going to separate.
Can the woman sell the house without the man's
consent as long as the equity issues are handled fairly.
2 Answers from Attorneys
Re: Quit Claim rights for unmarried couple
She can sell the house without his signature, and keep all the money also. If the document he has, in which she acknowledges he has half the equity, is notorized. It probably needs to be recorded to cloud the title. Then he'll have to sign off on the house when it's sold. Or he can trust her and end up suing for his half of the equity. He might even collect someday.
Re: Quit Claim rights for unmarried couple
Your question recites two facts that seem to be in conflict with one another, and the correct answer, or at least my correct understanding of the facts, is the key to answering your question.
On the one hand, you seem to say the man quitclaimed his interest to the woman.
On the other hand, you say the woman executed some kind of document before a notary acknowledging that the man was a joint tenant.
There are really three, maybe four, issues here: (1) Who has legal title to the house -- i.e., whose name(s) will appear on the most recent deed or other instrument of conveyance? (2) Who has an equitable interest in the house, if anyone, not shown on the deed(s) -- i.e., is someone entitled to be shown as an owner by virtue of making payments of equity who isn't properly reflected in the deed(s)? (3) Who is liable on the mortgage/deed of trust? and maybe (4) Are there any contracts or other enforceable rights running from one of these folks to the other that a court would recognize?
In general, unmarried couples who buy property together are not treated like marrieds under the family code provisions. Instead, they are regarded for most purposes as business partners involved in a business venture. Their rights are determined by ordinary real estate, contract and partnership law.
"Notary Public document" is probably a misnomer. Many types of documents, including deeds, affidavits, powers of attorney and other formal instruments, must be acknowledged (a form of witnessing by a trained witness), and notaries are one class of indivduals authorized to acknowledge the execution of documents.
Unless the man and woman can comfortably agree on a property division, and put it in writing, each should have his or her own (local) legal advisor. Then, the starting point would be to have your attorney pull all the recent records on the property, review your mortgage documents, etc. and advise you on a fair property division. Then, one buys the other out, including refinancing the place to clear the selling partner's mortgage liability. If neither can afford to buy the other out, sell the property and divide the net proceeds per agreement.
In the unfortunate case that you can't agree even after getting (separate) legal advice, the remedy is a lawsuit for partition. A court will order the property sold and the net proceeds fairly divided according to evidence presented at trial. This is expensive and time consuming, and a negotiated settlement is better for all concerned.