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?
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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 15 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.
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