Legal Question in Real Estate Law in California

Some family members ( brothers and cousins, and a friend) and I would like to purchase a few properties for investment purposes. We would like to rent them while the value we believe will rise. Instead of each buying one property we decided to pool on different properties and share the revenues depending on how much we invested. We tried to look for laws that limit the number of owners for one property in California, but could not find any. We will be grateful if we could have any answer or a reference for where we can find this law. Thank you all very much


Asked on 10/11/12, 9:17 am

2 Answers from Attorneys

There is no such law. There are, however, state securities laws that might come into play. For that reason and many others, it is a good idea to set up a LLC or Family Limited Partnership (if qualified) for a venture such as you propose.

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Answered on 10/11/12, 9:33 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

You may find it very cumbersome to buy and operate investment properties with multiple individual owners. Indeed, the law might at some point hold that you had formed a partnership and that the properties were now partnership-owned, whether or not title was so held. Therefore, I think it would be wise to consider setting up a partnership or LLC in the first place. This will be much more convenient than, for example, getting a bunch of signatures any time you wanted to refinance or sell a property.

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Answered on 10/11/12, 10:33 am


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