1. Don't delay. California real estate values just keep going up.
2. You are entitled to reimbursement for the downpayment plus his one-half ofeverything you have paid, from PITI to repairs and upgrades. After that, he has a claim to half. Further investigation of the facts might show that he is not entitled to anything, but it might not be worth the legal and accounting expense to figure it out. Figure out what would be his share of the equity, after the reimbursement described above, and offer to buy him out for that amount. It wll be faster and cheaper than paying lawyers.
3. Don't pay him until you have an original signed and notarized grant deed in recordable form. As soon as you pay him, record it. Don't wait even overnight. If you hired an attorney to do it, you would probably also obtain a title report and maybe a title insurance policy on the half you are acquiring from him. Judgments and tax liens against him might have attached to his interest in the home and should be paid from any share he is entitled to.
If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business.
Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need.
Dana Sack
Answered on May 31st, 2017 at 1:46 PM