Legal Question in Real Estate Law in California
Selling One-Third Ownership of Home/Property
My mother invested in property with my brother and his wife. The property includes two houses. My brother and his wife live in the main house, while the so-called mother-in-law quarters is under renovation. My mother made the $300K down payment on the property, and invested another $80K in renovations, before deciding she does not want to physically live on the property. My brother and his wife carry the mortgage (interest only for 5 years), and have otherwise not put any of their own money into the property beyond the monthly payment. My mother is looking for the most expedient way to recoup her money so that she can purchase her own home. My brother and his wife are not willing to buy her out, take out an equity loan to reimburse her, or liquidate other assets. They are also not willing to sell the property, essentially leaving her ''penniless.'' Can she sell her one-third ownership? Or can she force a sale of the entire property? If the property were sold, would she only receive one-third of the proceeds, or would she be entitled to more given that she put most of the money in?
3 Answers from Attorneys
Re: Selling One-Third Ownership of Home/Property
Was there any contractual agreement among them as to how ownership would be held, how she would be repaid, who would pay for what, etc. If your brother got her to be a joint tenant, then when she dies he and his wife would get the whole thing . A joint tenancy can be broken and converted to tenants in common fairly easily [written statement that she no longer is a joint tenant but rather property should be held as tenants in common].
She probably can force a partition sale, which might cause about $15,000 in attorney fees, especially as your brother will oppose it. What percentage she would be entitled to depends upon what her ownership interest in the property is.
The fastest and cheapest way to get some of her money back likely is going to a good real estate law attorney and have they write a sharp letter pointing out all the legal remedies she is entitled to, including possible elder abuse claim, a letter to the lender that she no longer considers her self liable for any of the monthly interest payments [so they put pressure on your brother--so you must look carefully at the terms of the mortgage agreement]. And she must be sure in the future to get everything in written and protecting her for any other "deals" with him.
Re: Selling One-Third Ownership of Home/Property
A strong letter from an attorney may be of assistance in resolving this situation without litigation. If there is no compliance, then a partition action can be filed. Please contact our office if you have any questions.
Re: Selling One-Third Ownership of Home/Property
She can probably force a sale of the entire property. Contact our office to discuss. Ask for Ben or Dan.
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