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Community Property • Sale of Community (Real) Property
CPROP#053
Legal Definition
No. Both spouses must execute any instrument transferring real property belonging to the community, even if only one spouse is on the title. However, a transfer to a good faith purchaser without knowledge of the marital relationship is presumptively valid. The non-consenting spouse can overcome this presumption only if they (1) bring an action to void the transaction within 1 year of the recording of the transfer; and (2) demonstrate they did not consent to or participate in the transfer.
Plain English Explanation
A spouse cannot sell a house or land owned together with their partner without the other's agreement. Both must sign the selling papers. If a spouse sells it without telling the other, and the buyer doesn't know they're married, the sale may stand as valid. But, the spouse who didn't agree can challenge this within a year of the sale being recorded. They must show they didn't agree or take part in the sale.
Hypothetical
Hypo 1: Bob secretly sells a vacation cabin owned jointly with Amy to his friend George, without telling Amy. George doesn't know Bob is married. Result: Amy can challenge this sale within a year since it was recorded. She needs to prove she didn’t agree to the sale and didn’t participate in it. If successful, the sale may be reversed.
Hypo 2: Bob, without Amy’s consent, sells their jointly owned city apartment to Sam, who knows they are married. Result: Since Sam knew about the marriage, the sale is not even presumptively valid. Amy can easily challenge the sale.
Hypo 3: Bob and Amy co-own a country house. Bob wants to sell it, but Amy disagrees. Bob forges her signature and sells it to an unsuspecting Timmy. Amy waits 14 months to check in on the country-house and discovers Timmy as the new owner. She decides to challenge his purchase. Result: Amy is likely barred from challenging the sale due to California’s one-year statute of limitations for voiding transfers made without spousal consent. Since she waited 14 months, her claim is time-barred, and Timmy, as a bona fide purchaser, would likely retain ownership.
Hypo 4: Bob inherits a house from his late uncle. He decides to sell it without telling Amy. Result: Since the house is Bob's separate property, inherited solely by him, the rule of requiring both spouses' consent for selling community property doesn’t apply here. Bob can sell the house without Amy's consent.
Hypo 2: Bob, without Amy’s consent, sells their jointly owned city apartment to Sam, who knows they are married. Result: Since Sam knew about the marriage, the sale is not even presumptively valid. Amy can easily challenge the sale.
Hypo 3: Bob and Amy co-own a country house. Bob wants to sell it, but Amy disagrees. Bob forges her signature and sells it to an unsuspecting Timmy. Amy waits 14 months to check in on the country-house and discovers Timmy as the new owner. She decides to challenge his purchase. Result: Amy is likely barred from challenging the sale due to California’s one-year statute of limitations for voiding transfers made without spousal consent. Since she waited 14 months, her claim is time-barred, and Timmy, as a bona fide purchaser, would likely retain ownership.
Hypo 4: Bob inherits a house from his late uncle. He decides to sell it without telling Amy. Result: Since the house is Bob's separate property, inherited solely by him, the rule of requiring both spouses' consent for selling community property doesn’t apply here. Bob can sell the house without Amy's consent.
