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The down payment made by one co-tenant (co-owner) of Real Property is reimbursable to the person who paid it.

On Behalf of | Jun 1, 2018 | Real Estate

Looking at the CCP about Partition and the equitable powers of the court,  the person paying the down payment should be reimbursed what they paid for the down payment before any distribution of the proceeds.  In re Marriage of Leversee (1984) 156 Cal. App. 3d 891 involved a married couple who prior to marriage  purchased a home as joint tenants. Id. at 894. The court of appeal held that the house was not as community property, and that the property’s disposition must be pursued in a partition action. Id. at 897. The court stated that in such a partition action “the court may order an equitable compensatory adjustment to compensate [the plaintiff] for her use of separate funds for the down payment on the residence.” Id. Similarly in Demetris v. Demetris (1954) 125 Cal. App. 2d 440 where one co-tenant had paid more than his fair share of the purchase price the court held that the co-tenant was entitled to a credit. Id. at 444 – 445. Therefore, one co-tenant may be awarded credit for having paid more than her share of the down payment or purchase price.

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