Legal Question in Real Estate Law in California

Re: Quitclaim deed

With regard to the need for a comprehensive co-ownership agreement: Couples come to me with the same situation, and I tell them they need an agreement that covers what happens to the property when they break up. The couples say, "But we're not going to break up!" I respond, "So you're both gonna live forever?"

Even if your relationship were perfect and nothing would ever cause you to have differing views, at some future date one or the other of you will die, leaving a problem for the survivor (who will have the heirs as co-owners). If you hold as joint tenants with right of survivorship or will your interests to one another, the problem is merely postponed.

So, for this and many other reasons including the fact that relationships do break up before death (and there are no laws similar to the community-property laws that govern married couples' property rights), you need a comprehensive written agreement covering:

(1) How title to the property will be held (tenancy in common is usually recommended);

(2) Who paid the down payment;

(3) Whether the transfer of a 1/2 interest to the not-originally-on-title partner is a gift or whether the new co-owner paid or will pay for the half interest, and if so, when and how;

(4) Whether each co-owner retains or waives the right to sue for partition;

(5) Who will pay taxes, principal, interest, insurance and maintenance;

(6) Whether or not either co-owner will be reimbursed in one form or another for "sweat equity;"

(7) Whether the ownership is 50-50 or some other percentage (this would also show in the deed);

(8) When and how the property will be sold and the proceeds divided;

(9) Insurance issues;

(10) Whether and to what extent each co-owner can make use of the property....ordinarily, each co-owner has the right to occupy and possess the entire property, and this includes the right to have guests, rent it out, etc. This would include an estranged co-owner's right to have his or her new girl- or boy-friend move in!

Etc.

Re: Quitclaim deed

Call me directly at (619) 222-3504 for a co-ownership agreement to protect both of your interests.

Re: Quitclaim deed

Why would you do that if he is not on the loan? If you do put him on, make sure you have a written co-ownership agreement. I have seen too many of these becoma a disaster.