It is possible to be named on the title deed of a property without being on the mortgage. This means that you are not legally obliged to repay the mortgage but you have the right to ownership of the property.
What Does Being on the Title of a House Mean?
A title refers to the real estate title of a property. This is the legal way of expressing who is the rightful owner of a property. Therefore, the person whose name is on the title deed is the legal owner of the property.
Thus, whoever is on the title deed has access to the property and is entitled to make modifications. It also gives this individual (or individuals) the power to transfer the ownership to others.
How Can Someone Be on the Title Deed but Not the Mortgage?
It is possible to be named on the title deed of a home without being included on the mortgage. This arrangement means that the individual is an owner of the home but is not liable for the mortgage repayment. However, if the payments are defaulted, the lender can still foreclose on the home.
The person who is officially an owner of the property but does not have an obligation to repay the loan is sometimes referred to as a “non-obliger” or “non-borrower.”
There are many reasons why a couple might choose to do this. For example, applying for a joint mortgage means that lenders will look at combined income but also an aggregated credit score.
In the case that one person from the couple has a bad credit history, poor employment record or outstanding debts, it could ruin their chances of getting a mortgage. However, it would still be possible for their name to be on the deed regardless of whether or not they are contributing to the mortgage.
Even though you can be on the deeds of the home without being on the mortgage, it is worth noting that many mortgage lenders will not agree to this arrangement.
Can I Sell a House if My Name Is Not on the Mortgage?
Anyone listed on the property title will have full ownership of the home and thus have full rights to sell the property, regardless of whether or not they are on the mortgage.
If You Buy a House as a Couple Under One Name Can Both Spouses Be on the Deed Title?
Even if you choose to buy a house under one name, you can add your spouse to the home’s title after the loan is finalised and become official “co-owners”.
However, the person on the mortgage application will be the sole party responsible for the repayment of the loan.
Listing a spouse as a co-owner on the house title does not signify any legal responsibility for them to assist with the mortgage payments.
Can You Add a Name to a House Title?
Yes, you can add names to a house title to allow for joint ownership of a property. Examples of people that are typically added to a house title include:
- A spouse
- Your child
However, they will need to have an interest or share in the property. In these cases, it is possible that any existing loans will need to be refinanced or modified.
What Rights Do You Have if Your Name Is Not on a Deed?
If multiple people are living in a house and there is only one name on the title deed, the “non-owner” (the party whose name does not appear on the deed) has no legal rights over the property. In this case, it is possible to establish a “beneficial interest”.
Is There a Downside to Putting Multiple Names on a Title Deed?
If there are multiple names on the title deed of a home, especially if the names are of those who are not contributing to the mortgage, it assumes risk of ownership as it means the title is not free and clear.
Do You Need To Be Married To Be Co-Owners of a House?
You can legally co-own a house with someone even if you are not married. Names can be added to the deed even for people who have not signed the mortgage, as long as the lender agrees. However, taking title of a property as an unmarried partner or friend can sometimes be more complicated than a married couple buying a property together.
If you are not married but purchased the house with a partner who is the sole name on the mortgage, you cannot claim the mortgage deduction on your income taxes, even if you contribute to the payment each month.
Can a Name Be Added to the Mortgage?
It is possible to add a person to your mortgage deed, something which is done by contacting the lending company and paying any additional service fees. If someone is added to the mortgage deed and the title deed they will be equally responsible for the repayment of the mortgage and will also have legal rights to the property.
