Legal Question in Real Estate Law in California

Re: Real Estate statute

OK, going back to the beginning, when you purchased the home "with a long time friend," did the friend become a legal co-owner (name on title, shown as joint tenant or tenant in common)? If so, she had the right to live in the house without paying rent, and that would be true even if she were only a 1% owner. The general rule is that all co-owners have the right of possession simultaneously with all other co-owners. So the fact that she didn't pay rent is no big deal; she didn't have to (if she was a co-owner).

Next, it sounds as though about a year ago she made a gift of her part interest in the house to you. If this was properly documented by a gift deed in proper form, then you should have nothing to fear from a suit to recover her portion of the property. A gift is complete and irrevocable when made and the gift delivered. In the case of real property, "delivery" is accomplished by delivery of a deed. Even if the deed is not notarized, it is valid if in the proper form (or close), signed and delivered to you.

Of course, practically any legal act or instrument can be attacked for fraud, duress, undue influence, lack of competence of a party, and so forth. These attempts to void a document rarely work when the true reason for the attack is really just a change of mind. I cannot say you won't be sued; there are a lot of hungry lawyers who will write up and file a lawsuit on about any pretext for a client with money, but if sued and if the deed appears valid on its face, and there are no facts supporting fraud or something of that ilk, it will probably be upheld and you should win in court.

Re: Real Estate statute

Follow Mr. Whipple's advice.

Good luck!