My boyfriend and I recently purchased a home with his sister and her fiance. They aren’t on the mortgage but want to be on the deed. Good or bad idea?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
My boyfriend and I recently purchased a home with his sister and her fiance. They aren’t on the mortgage but want to be on the deed. Good or bad idea?
We agreed to purchase the home together, and when sold, each receive equal shares of profit. However, due to credit issues, only my boyfriend and I could be on the mortgage. Now, they want their names on the deed saying they need to be given the house in case my partner and I are killed. So, because they have bad credit, I am afraid if they default on something and their names are on the deed, creditors can come after the house. Is it a bad idea to let people who are not on the mortgage and have filed for bankruptcy recently, be on the deed? How can I protect myself, my credit, and my investment?
Asked on June 24, 2009 under Real Estate Law, Wisconsin
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I am a lawyer in CT and practice in this area of the law. It sounds like you all have a deal regading sharing real estate profits and is most likely an enforecable agreement in court. I suggest that you visit a lawyer to set up a Limited Liability Company where you are all members. Transfer the property from you and your boyfriend to the LLC. this way, the LLC is on the hook (i.e. could lose the house if no one pays the mortgage) and you all can ensure that the mortgage is paid. When you sell the house, you will each get paid accoding to your equall interests in the LLC.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.