Home Buying in Rochester>Question Details

Brooke, Home Buyer in Rochester, MN

Home Titles/Names on title

Asked by Brooke, Rochester, MN Wed Sep 19, 2012

Hi,

My husband and I are looking to buy our first home in the next couple of months. My husband is Muslim and will not take out a loan from the bank that charges interest. His parents are willing to pay for the home in full and have him pay them back so that he will avoid paying interest. I will also be contributing to the house payments so I would like to know what my legal rights will be. If his parents pay for the home, is it still possible to put both my name and my husband's name on the title? In the event that something should happen to him, I would not want my in-laws to take possession of the home themselves if I had contributed to the payments. Must they have their name(s) on the home if they are the ones initially writing the check?

Thanks for your advice.

Brooklyn

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Answers

5
Hi, Brooke!
There are no prohibitions about who can be in title on a home. As long as the home is paid for and the title is transferred correctly, the buyer can request for anybody to be on the title of the home. If there is a mortgage being registered with the title transfer at the closing, then whoever is holding the mortgage is considered a lien holder and has the right to foreclose on that property if the buyer is ever in default on the loan.

Now, in this case, your in-laws may or may not wish to have this registered as an official mortgage. If they do or don't, I would say it would definitely be in your best interests to consult an attorney to find out what your rights are in the event something happens to your husband. You may want to purchase some insurance that would allow you to pay your in-laws off in total in case you need to.

But, definitely consult a good real estate and estate planning attorney to get the correct answers.

Good luck~
0 votes Thank Flag Link Thu Oct 11, 2012
If you want to know your legal rights you need to hire an attorney and pay them to put it in writing for you.
If you are asking what can and can’t be done with title there is nothing that prevents you from being on title unless your in-laws and husband don’t want you on it, which would be a wakeup call for you.

Nothing requires your in-laws to be on the deed or even file a mortgage for that matter. Documentation on a private agreement like this is up to the individuals, it doesn’t sound like you are in the loop.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Thu Sep 20, 2012
For couples: the most common type of ownership or title on the deed is joint tenancy. When one of the spouses passes away, the property becomes the sole ownership of the surviving spouse.

The best route to take is to consult a lawyer to address your concern.

Good Luck.
0 votes Thank Flag Link Thu Sep 20, 2012
Hi Brooklyn,

I have encountered similar situations before. The first thing I would say is that you should consult an attorney for exact answers. What I can tell you is how the situation could be circumvented. When you purchase a home, you have what is called a 'fee simple absolute' estate. This is what your husband's parents would have. They can then sell the home to you and your husband on a contract for deed or purchase money mortgage. Although different, each is a form of sale in which they act in the same way a bank would. I can go into each further if you would like. When you and your husband purchase the home, you have a choice as to what your relationship is. In your case, you are looking for what is called a 'joint tenancy.' This is where the interest of your spouse goes to you in the event of death and there is no need to go to probate court to attain that interest.

Please let me know if you would like me to go into further detail or if you have any other questions that I might be able to answer for you.

Thank you,

Tom Hill
Matik Management, LLC
0 votes Thank Flag Link Wed Sep 19, 2012
Brooklyn,

It all depends on what the agreement your husband works out with his parents says. Since they are loaning the money, they have the right to demand to be put into title, but they may not care. Whether or not your name is on the title, you will hold a marital interest in the property. Meaning that because you are married, you hold a half interest in all of your husband's real estate and he holds a half interest in all of yours.

Make sure you have a dynamite real estate agent explain to you the differences between joint tenants and tenants in common, and once you understand them, work with the title company that closes your sale to make sure you enter title for the new house in the appropriate manner.

Good luck in the upcoming purchase. Let me know if you need help in locating a real estate agent in Rochester to help you - I am more than happy to pass along a name for you.

Cameron Piper
Coldwell Banker Burnet
licensed MN Real Estate Broker
Web Reference: http://www.CamPiper.com
0 votes Thank Flag Link Wed Sep 19, 2012
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