Posted on: 21st Dec, 2011 11:55 am
If my partner agrees to place my name on the deed as a 5% initial investor, but not a signer of the note or mortgage, what effect will that have on the mortgage etc. My partner has excellent credit and mine is mediocre. I am contributing about $30,000 per year toward the house valued at $700,000.
Charlie
Charlie
If you are only placed on title, this does not affect the mortgage. When the title to a property is transferred to another party, may trigger the due on sale clause found in your note, in some states. A party can be on title, but not on the mortgage, you cannot be on the mortgage and NOT on title.
Welcome Charlie,
If your name is mentioned on the property deed, then you will be considered as one of the owners of the property. However, if your name is not mentioned on the mortgage docs, then you won't be liable for paying off the mortgage dues.
If your name is mentioned on the property deed, then you will be considered as one of the owners of the property. However, if your name is not mentioned on the mortgage docs, then you won't be liable for paying off the mortgage dues.
Hello Charlie,
The easiest method to transfer an interest in real estate to create a co-ownership is by a quitclaim deed. As long as the grantor is the owner of the property a quitclaim deed can be used to transfer an interest to a co-owner and their title is absolute, subject to encumbrances. Once the deed is recorded in the land records it will establish title in the grantee(s) as it is defined in the deed. A sole owner can transfer a half interest to another person (or any other proportionate interest) or the sole owner can have a deed drafted that transfers the property to herself and the other person with the desired tenancy. A deed should be drafted by a professional to make certain it is a proper deed for your jurisdiction. Errors in deeds made by non-professionals can be costly to correct if they can be corrected.
:idea:
The easiest method to transfer an interest in real estate to create a co-ownership is by a quitclaim deed. As long as the grantor is the owner of the property a quitclaim deed can be used to transfer an interest to a co-owner and their title is absolute, subject to encumbrances. Once the deed is recorded in the land records it will establish title in the grantee(s) as it is defined in the deed. A sole owner can transfer a half interest to another person (or any other proportionate interest) or the sole owner can have a deed drafted that transfers the property to herself and the other person with the desired tenancy. A deed should be drafted by a professional to make certain it is a proper deed for your jurisdiction. Errors in deeds made by non-professionals can be costly to correct if they can be corrected.
:idea:
