Before an expert answers your question, I think you may have to provide more details such as
First, what is the vesting you and your friend have tenancy in common or joint tenancy?
Second, do you currently have any loan on the property? Who is the borrower?
Third, does your friend still have good relationship with you?
Forth, how much do you have your friend earn?
In CA, What I or other CA real estate pros here can answer you is real estate part only such as real estate market value, loan possibility, real estate contracts and real estate trend. We have to legal authority to answer any question about tax and general legal issues. I know a lot of real estate pros here do that but I have to be honest to say that is illegal. It may be criminal conduct.
If you ask a general question, everybody may answer it because they do not guarantee their answers. You are asking a particular question here. Then only tax experts or legal experts can answer their particular part.