Transferring a mortgage can be a practical solution in various life situations, from family changes to estate planning. However, the process is not as straightforward as it might seem.
As experienced attorneys specializing in real estate, wills, and business law, Stone & Sallus has helped countless clients in California with seamless and legally compliant mortgage and property title transfers. Whether you’re transferring property to a family member, resolving a divorce settlement, or planning your estate, our team is here to provide the trusted support you need.
In this guide, we’ll break down the steps and considerations for transferring a mortgage—and even a property title—in California to help you get started.
Can You Transfer a Mortgage in California?
Most mortgages include a “due-on-sale” clause, meaning the full loan balance becomes payable if the property is sold or transferred. However, there are exceptions:
- Transfers to family members (e.g., between spouses or parent to child)
- Divorce settlements
- Inheritance or estate planning scenarios
Lender approval is usually required for a mortgage transfer. The new borrower must meet financial qualifications to assume the mortgage.
How to Transfer a Mortgage in California
Resolving disputes early saves time, money and the partnership itself. Here are some common ways:
- Negotiation: Open communication to find mutually agreeable solutions.
- Drafting Clear Agreements: Drafting strong partnership agreements upfront to define roles, responsibilities and conflict resolution.
- Legal Guidance: Working with experienced lawyers to mediate or prepare for court.
However, sometimes despite all efforts, a resolution may not be possible. When partners remain at an impasse and the business is no longer sustainable, it may be time to look at formal legal options such as litigation, buyouts, or even dissolution.
Legal Remedies in Business Partnership Lawsuits
- Litigation: When disputes cannot be resolved amicably, litigation becomes necessary. This involves filing a lawsuit and presenting evidence in court.
- Alternative Dispute Resolution (ADR): Not all disputes require a courtroom battle. Stone & Sallus can help you explore:
- Mediation: A neutral mediator facilitates discussions to help both parties reach a resolution.
- Arbitration: A faster, more private alternative to court where an arbitrator makes a binding decision.
- Buyout Agreements and Exit Strategies: Sometimes the best solution is for one partner to buy out the other. Drafting these agreements properly ensures a fair outcome and reduces future disputes.
- Judicial Dissolution of Partnership: If the partnership is no longer viable then legal dissolution may be the only option. This involves distributing assets and liabilities under court supervision.
Common Questions About Partnership Lawsuits
Can I Sue My Business Partner for Abandonment?
Yes. If a partner is walking away from their responsibilities and the business is suffering as a result, you have a case.
Can I Sue My Business Partner for Negligence?
Negligence occurs when a partner fails to perform their duties, causing harm to the business. This can be addressed through legal action.
Can I Sue My Business Partner for Using the Business’s Intellectual Property?
If a partner uses the business’s intellectual property without authorization, it may be a breach of trust or a violation of intellectual property laws.
Can I Sue My LLC Partner?
LLC partners are bound by specific operating agreements. If those terms are violated, legal action may be appropriate.
At Stone & Sallus, we know how stressful and expensive partnership disputes can be. Our team of business lawyers will work with you to address your specific situation. From negotiation and mediation to lawsuit and dissolution, we’ll defend your rights and get you the best result.
Let Stone & Sallus guide you through the complexities of business partnership lawsuits. Contact us today for a consultation.
