Legal Question in Real Estate Law in California
sneaky husband
married 38 yrs-we own outright 5 homes--I just discovered my husband got a $280,000.000 home loan on one of our properies without my signature--is this legal
2 Answers from Attorneys
Re: sneaky husband
The previous post is incorrect. If you disagree with the transaction, you can void it. A nonconsenting spouse can void a trust deed executed by only one spouse during the marriage. "We conclude that pursuant to section 5127, both spouses must consent to the transfer of community real property. Consequently, when a nonconsenting spouse, during the marriage, timely challenges a transfer made in violation of section 5127, the transfer is voidable." (Droeger v. Friedman (1991) 54 Cal.3d 26, 36-39.)
The code section discussed in that case was former Civil Code section 5127. In 1992, that section became current Family Code section 1102, which provides that "Except as provided in Sections 761 and 1103, either spouse has the management and control of the community real roperty,
whether acquired prior to or on or after January 1, 1975, but both
spouses, either personally or by a duly authorized agent, must join
in executing any instrument by which that community real property or
any interest therein is leased for a longer period than one year, or
is sold, conveyed, or encumbered." (Fam. Code sec. 1102 subd. (a).)
Normally a lender will not loan money secured by real property if both your names were on title. Either your husband borrowed money from Eddie the loanshark, or he may have previously taken you off title without your knowledge.
I think you should be concerned, but I am a lawyer and not a marriage counselor.
Very truly yours,
Re: sneaky husband
I do not see any reason from the facts you have given why the transaction would not be legal. A spouse's signature is not required to purchase real property. However, each spouse owes the other a fiduciary obligation. This obligation includes an obligation to disclose major financial transactions or pending transactions. Your husband may have breached this obligation owed to you. Should the marriage community suffer monetary loss as a result, you can sue your husband for reimbursement to the community.