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Property Keyed to French
Leg Investments v. Boxler
Citation:
183 Cal. App. 4th 484, 107 Cal. Rptr. 3d 519 (2010)Facts
In 1976, the defendants, the Boxlers, and another couple purchased lakefront property at Carnelian Bay, California. Each couple owned a fifty-percent undivided interest as cotenants. In 1993, the other couple transferred their interest in the property to the Schwerdtfegers. The Schwerdtfegers and the Boxlers entered into a tenancy in common agreement. That provided them with rights of first refusal for the term of the agreement, thirty years with automatic five-year extensions until termination was agreed to by the owners. In 1998, the Schwerdtfegers sold their interest to the plaintiff, Leg. Leg claimed there were disputes and problems with the Boxlers almost immediately after purchase. Leg claimed the Boxlers refused to pay for reasonable and necessary landscaping, maintenance, cleaning, and repairs. In 2003, Leg offered to purchase the Boxlers’ interest or sell its own interest in the property to the Boxlers for $750,000. The Boxlers declined both offers. In 2005, Leg received an offer to purchase its interest in the property for $1.4 million, subject to approval of the Boxlers as co-owners. Pursuant to the right of first refusal, Leg transmitted this offer to purchase Leg’s interest on those terms to the Boxlers, they declined. The sale fell through after the Boxlers met with the buyer and the buyer determined they were unwilling to contribute to renovations and repairs. In March 2006, Leg demanded the Boxlers agree to list the property for sale or purchase Leg’s interest. If neither was acceptable, Leg would file an action for partition by sale. In May 2006, Leg filed a complaint for partition by sale.
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Topic Resources
Topic Refresher Course
Intro to Concurrent Estates and Tenancy in Common