Legal Question in Real Estate Law in California

I am getting ready to move in my boyfriend who I have had a relationship with for six years. He just bought a house but my name is not on it. Due to my credit score, it was better that he purchase the house without my name so that he can get the better interest rate. He also used his VA loan since he is retired military. I did, however, gave him $4000 of the $5000 returnable deposit. I also gave him another $1000 to help pay for the upgrades and stainless steel appliances put into the house. I was involved in the whole process of looking, offering, and then of course now going through the loan process and closing of escrow on 8/20/2010. I will not be renting from him, but will be living with him so there is no rental agreement. The utility bills will also be in both of our names. Our financial arrangement is that I will give him $750/month to help pay for the mortgage and other household expenses. My question is how much right do I have to the house if he ever decides that he no longer wants me there and wants me to leave. We have talked about getting marrie but no definite plans as of yet. So do I have any legal recourse if he ever decides in the future that he no longer wants to be with me.


Asked on 8/17/10, 2:12 pm

4 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Six years and he has only "talked" about getting married? He's Just Not That Into You. Tell him you want to be married and your name on the title to the house, or you're leaving. Then do it. Please do not become one of these women who live with the guy for 10 or 20 years and then they leave the relationship with NOTHING. And you are going to help pay his mortgage in return for no name on the title and no equity in the house!!!! Stop being a sucker.

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Answered on 8/22/10, 2:20 pm

Mr. Stone is a pessimist, but his answer is not entirely wrong. You need to talk about and then put in writing what your agreement is about your interest in the house. The last thing in the world you want is to have to rely on the law to sort it out for you if things go bad between you. We field dozens of questions from women who weren't on title "because of credit" and then some years down the line want to know what their legal rights are. The trouble is, even if they have them they are going to have to hire a lawyer to enforce them. If you are really in a loving committed relationship, he should have no problem talking openly about your financial arrangements and then coming to an agreement on them. If he balks at that, then I'm with Mr. Stone, run, don't walk, to the nearest exit. Someone who won't talk about these things and work together when times are good, you do NOT want to be with when they aren't.

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Answered on 8/22/10, 2:25 pm
Anthony Roach Law Office of Anthony A. Roach

To protect your rights, you are either going to have to get married, have him deed a portion of his interest to you, or enter into a written contract.

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Answered on 8/22/10, 2:40 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

There is an equitable concept called "purchase-money resulting trust" which says that, irrespective of how legal title is held, ownership follows relative contribution to the purchase money (which means the down payment, in the case of houses bought with nonrecourse loans).

An example: John D. Rockefeller, at his desk in New York, hears from his scouts that oil has been discovered in Collin County, Texas. He goes to his safe, gets out a bag of gold, and gives it to his trusted accountant, Bob Cratchit, with instructions to take the next train to Plano and buy every ranch in sight. Two weeks later, Rockefeller learns that ten oil-rich ranches have been purchased with the gold, but the titles are all recorded in Cratchit's name, perhaps because Cratchit has decided to conceal Rockefeller's identity to keep the prices low. Who owns the ranches? Rockefeller. He can force Cratchit to deed them over.

Another example: Jack and Jill buy a house together. Jill provides 80% of the down payment, but the deed is recorded showing Jack and Jill at joint tenants (implying 50-50 ownership). If Jill sues, the court can compel Jack to deed over the additional 30%. The person getting a larger piece of the title than his/her contribution to the purchase money would warrant is regarded as an involuntary trustee, with a duty to deed over the excess upon demand.

No resulting trust arises where the excess contribution should be regarded as a gift. This is properly presumed when the relationship of the parties is parent and child, occasionally between husband and wife, but rarely in a boyfriend-girlfriend situation where the paperwork between them shows a businesslike relationship as to finances, and no express intent to make a gift is shown or inferred.

My advice is to have an agreement covering everything, in simple terms, including your monthly contribution, stating that your down-payment money is your investment and not a gift, etc. Also, get and keep documents showing that you were the source of the purchase money, such as canceled checks, a copy of the escrow papers, especially the closing statement, and anything else that shows you provided the money, perhaps a note from the real estate agent or anyone else with present knowledge that it was your $4000.

Of course, if the total down-payment was $100,000, not just $5,000, your percentage interest is 4%, not 80%.

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Answered on 8/22/10, 4:34 pm


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