Razaqi v. Khurush CA3

CourtCalifornia Court of Appeal
DecidedNovember 21, 2025
DocketC099636
StatusUnpublished

This text of Razaqi v. Khurush CA3 (Razaqi v. Khurush CA3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Razaqi v. Khurush CA3, (Cal. Ct. App. 2025).

Opinion

Filed 11/21/25 Razaqi v. Khurush CA3 NOT TO BE PUBLISHED California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (San Joaquin) ----

SARAH RAZAQI, C099636, C101262

Plaintiff and Respondent, (Super. Ct. No. STAFLDWC20170005083) v.

JAWED KHURUSH,

Defendant and Appellant;

ARZO RAZAQ,

Claimant and Appellant.

This consolidated appeal arises out of a marital dissolution proceeding in which Sarah Razaqi (wife) and Jawed Khurush (husband) disputed whether the home they lived in at the time of separation (the Property) was community property. Husband’s sister, Arzo Razaq (sister), was joined in the action. After a bench trial, the court found the Property was community property even though paper title was in sister’s name because

1 title was taken pursuant to a “straw buyer” agreement among the parties, and husband and wife were intended to be the true owners. During trial, husband and his sister denied the existence of this agreement, denied husband and wife reimbursed sister for the down payment, and claimed husband and wife merely rented the Property from sister. The trial court found husband’s and sister’s testimony not credible, and concluded husband breached his fiduciary duty to wife by repeatedly repudiating the straw buyer agreement and that he colluded and worked in concert with his siblings in their effort to deprive his wife and children of “their sole, exclusive, and valuable asset.” The court awarded all of the Property to wife based on this breach under Family Code section 1101, subdivision (h).1 Additionally, the court awarded wife a total of $154,840 in attorney’s fees under section 2030 and an additional $200,000 as sanctions under section 271. On appeal, sister argues: (1) the court had no subject matter jurisdiction over wife’s dispute with her; (2) the court erred in finding by clear and convincing evidence that sister entered into a straw buyer agreement; (3) this dispute is barred by the two-year statute of limitations for oral contracts; and (4) the court erred in finding sister’s motion to disqualify the trial court judge under Code of Civil Procedure section 170.6 was untimely and in striking her Code of Civil Procedure section 170.1 declaration. Husband argues the trial court exceeded its authority under section 1101, subdivision (h) by awarding all of the Property to wife. Sister and husband both challenge the awards of attorney’s fees under sections 271 and 2030. We affirm the orders awarding the Property to wife and awarding her attorney’s fees. I. BACKGROUND Husband and wife married in 1999. In 2012, husband and wife wanted to move out of her parents’ house. They had sold their previous home in a short sale and

1 Undesignated statutory references are to the Family Code.

2 discussed with husband’s brother, who was a realtor, how this might affect their credit. Husband’s brother suggested that instead of buying a home directly, husband and wife use sister as a straw buyer. Husband and wife would pay the mortgage, and sister would benefit from the tax write-offs. Escrow closed on the Property in May 2012. Afterwards, husband and wife made extensive improvements to the home, including remodeling the kitchen, without consulting sister. Husband and wife separated in 2015, but continued to live together. Wife testified that she and husband paid the entire amount of the down payment, and made the mortgage payments until she moved out of the home in August 2019. Wife testified that the agreement was supposed to last for at least a year or two, after which sister would transfer title to wife and husband. In 2017, wife and husband met with sister and informed her that they were divorcing and discussed selling the Property. Wife learned that husband had promised sister a share of equity in the home. Wife’s understanding after the meeting was that the house would be sold, she would receive her half, and husband and sister would work out their own agreement for the other half. In September 2017, wife filed the underlying action for dissolution of marriage. Wife submitted a property declaration indicating the Property was community property. In 2019, wife discovered husband stated in his property declaration that he and wife rented the Property. His May 2019 income and expense declaration also stated that he rented. In August 2019, wife filed a related civil complaint alleging various causes of action against husband, sister, and others including breach of contract, quiet title, imposition of resulting trust, equitable division of proceeds and rental value credit, declaratory relief, disparagement of title, and fraud. These proceedings were stayed pending resolution of this matter.

3 Husband’s and wife’s marital status was dissolved at a settlement conference in March 2023. The following month, the court conducted a bench trial on whether the Property was community property. Sister had previously been joined in this proceeding. The court issued its statement of decision on September 7, 2023. The court found by clear and convincing evidence that husband, wife, and sister entered into a straw buyer arrangement facilitated by husband’s brother. The court recognized that as a result of the straw buyer agreement, all of the parties had unclean hands. Nonetheless, the court found the straw buyer agreement was enforceable because the contract had already been performed, third parties had received all payments owed, wife was less culpable, and failing to enforce the agreement would result in sister being unjustly enriched. (See, e.g., Johnson v. Johnson (1987) 192 Cal.App.3d 551, 557.) The court also explained that, as a result of the substantial performance of the oral straw buyer agreement, the Statute of Frauds did not apply. The court imposed a resulting trust. “ ‘A resulting trust arises by operation of law from a transfer of property under circumstances showing that the transferee was not intended to take the beneficial interest. [Citations.] Such a resulting trust carries out and enforces the inferred intent of the parties. [Citations.] “Ordinarily a resulting trust arises in favor of the payor of the purchase price of the property where the purchase price, or a part thereof, is paid by one person and the title is taken in the name of another.” ’ ” (Estate of Yool (2007) 151 Cal.App.4th 867, 874.) “In other words, the relationship between resulting trustee and beneficiary arises where one, in good faith, acquires title to property belonging to another. The law implies an obligation on the part of the one in whom title has vested to hold the property for the owner’s benefit and eventually convey it to the owner.” (Ibid.) The court concluded the evidence showed the parties’ intent that the beneficial interest in the Property was to be enjoyed solely and exclusively by husband and wife. The court found that sister was not intended to be the true owner, and

4 husband and wife were meant to be the true owners of the Property. The court found that all parties knew husband and wife were not renting the Property from sister. The court found the resulting trust was enforceable because, with the sister’s consent as trustee, wife as the beneficiary took possession of the Property, made valuable improvements, and irrevocably changed her position in reliance on the trust. The court adjudicated wife as the Property’s sole, true, equitable, and beneficial owner, and explained that title should be quieted in her name as sister’s paper title was deemed to confer, at best, nominal status as trustee of a resulting trust in wife’s favor.

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