Legal Question in Real Estate Law in California

Re: Sue

The first issue to be resolved here is the conflict between 'my friend and I purchased a real estate property' and 'the real estate is under my name.' If both statements are true at the same time, then you would be considered the legal owner, and your friend would have some portion of the equitable title; that is, although not shown as a co-owner of record, he/she would have a right to be placed on title to some extent or other as a tenant in common.

On the other hand, a lawyer cannot assume without more information that this is the way things really stand. If, for example, you both paid the entire down payment and took full legal title in your name, then your friend might not have any interest whatsoever as an owner, legal or equitable, and therefore might be no more than a tenant, lodger or guest.

A lawyer trying to get a handle on the rights and duties of the parties would need to review (1) the deed by which you, or the two of you, came into ownership and possession; (2) the source(s) of the purchase money (down payment); (3) the so-called promissory note between you (which may be more of a contract than a note); and possibly (4) the way the purchase was financed, i.e., what the note and deed of trust used to help pay for it, if any, says.

Did YOU also sign the promissory note?

I think there is some possibility that you are the sole owner of this property; that the friend has no ownership interest, either legal or equitable; and that the friend is no more than a tenant. If that turned out to be the case, you could follow standard landlord procedures for delinquent tenants, e.g., notice followed by an unlawful detainer action. This is much faster and somewhat cheaper than other kinds of lawsuits.

However, a lawyer who is experienced in the title problems of co-purchased real estate should review the background and determine for you how strong your rights might be before any suit is filed or any eviction action taken. Otherwise, you may end up asking for less (or more) than the rights, and money, to which you are entitled.

Re: Sue

If you are the only person on title, you could sell the property and take what he owes you out of his half. Or you could bring a quiet title and partition action where you can buy out your fried's interest in the property minus what he owes you. This all assumes that you and your friend have agreed that he is a 50% owner of the property. If the note just says he owes you money, and there is no agreement that he is a part owner of the property, then you can sue him for money.