If 2 people own a house together equally, can 1 of them put their share up as collateral for another person to purchase a house without the co-owner’s consent?
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If 2 people own a house together equally, can 1 of them put their share up as collateral for another person to purchase a house without the co-owner’s consent?
If both signatures are required what would happen if the unknowing owner’s signature was forged? I ask because my father put our house up as collateral so a cousin who is notorious for not paying his bills could purchase a house. Both of my parents are equal owners of our house, yet my father did this behind my mother’s back, without her knowledge or her signature? Is that legal? Is he allowed to do that? If not, what happens to the contract and, more importantly, our house if it turns out that my mother’s signature was forged?
Asked on October 5, 2012 under Real Estate Law, Connecticut
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Under the laws of all states where there is a situation where a piece of real property is jointly owned by two people one of the owners can secure a loan with his or her ownership interest in a given parcel without the other owner's consent provided the lender who will be secured with this fractionalized ownership interest agrees to such. there is nothing illegal as to what you have written but such loan and security from a practical matter usually does not happen unless the loan is a private loan.
If your mother's signature on a document was forged, then she is not obligated under the law on the document she allegedly signed.
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