Legal Question in Real Estate Law in California
What to do when you have real reasons to suspect a real estate fraud? Where should I go to start an investigation? I have collected sufficient information about a real estate transaction that happened 5 years ago. My mother was financially affected buy this. Her ex hurried to sell the real estate property after my mother found out and had real proof he used common property money to purchase a sole and private property. Where should I go to open up a legal investigation? Their divorce is not finalized yet and he is threatening her with financial harm if she wants to seek the help of an attorney or go to court. Thank you.
2 Answers from Attorneys
I would advise an in-person discussion with a lawyer who offers (as most do) a free initial consultation. Your facts suggest a possible case, but are far from complete enough to allow us to say what the outcome may be. Among other things, the lapse of five years might present a "statute of limitations" problem. Note that an "ex" isn't really an ex until the divorce is final. Be sure to mention the possibility that property bought with someone else's funds may give rise to a "purchase-money resulting trust" allowing the provider of the money to obtain title to the property. Finally, there is a question as to whether this matter should be placed in the hands of a divorce lawyer, a real-estate lawyer, or ??? -- but in any case, she needs professional advice.
If the divorce is not yet final, all such transactions are under the jurisdiction of the divorce court. While I understand your mother is intimidated about hiring a lawyer, that is all the more reason she needs to do so. Divorce judges look VERY unkindly on spouses who threaten the other spouse about anything. Intimidating them into not hiring a lawyer is about the worst thing a spouse can do that doesn't involve domestic violence. Your mother needs to hire a family law attorney immediately, preferably one with a solid background in real estate. They will be able to trace any community funds used in any real estate transactions.
And disregard Mr. Whipple's comments about resulting trusts and statutes of limitations if what your mother is concerned about is community funds being used in the transactions. As long as the divorce case is pending the court has jurisdiction, and there is no such thing as a resulting trust between spouses since that is effectively automatic under community property law.