Legal Question in Real Estate Law in California

You can offer to buy her out, but if she refuses to accept the amount you offer, you may have to file a partition lawsuit, which may not end up the way you want.

Legally, it appears that you inherited property and may be tenants in common. There are rules that govern reimbursement for expenditures for improvements and property taxes on property held in tenancy in common. A right of contribution exists in favor of one cotenant who pays liens or other taxes against the entire property. If the property is income producing, meaning it is rented out to third parties, those expenditures may be deducted from the rents and profits on the property. The paying cotenant is also entitled to an equitable lien on the shares of the nonpaying cotenants for the proportional amount of any expenditures.

Cotenants are also entitled to contribution for the cost of repairs. If one cotenant makes improvements on common property, however, the paying cotenant cannot assert a lien for contribution unless the nonpaying tenant assented to the improvements.

Value the property (preferably by appraisal or, if not, by brokers opinion of value). Make her an offer. If you want to try to deduct the costs of the improvements, adjust the value by that amount ( in effect, treat her percentage of the costs of the amounts you paid like a loan). Negotiate a sale and implement it. If you are not able to reach agreement, the partition rules are likely to apply.

In effect, if you can all get along and agree on a reasonable price, everything works well. I would still suggest you engage counsel to enter into an agreement to protect you. Otherwise when the property grows in value next year, she may argue you cheated her.

If you are not able to reach amicable agreement, see a lawyer

Good luck.