My sis is buying a home and my name will be on the deed. What paperwork do we need to draft?

Question

My sister is purchasing a home and I am giving her some money for the down on the house. In exchange, she will have my name on the deed. We decided that even though my name is on the deed, she is responsible for the mortgage and I have no say in the development in the house.

My question is:

1) What benefits will i gain from doing this besides helping her and being co-owner?

2) Do we just draft up paperwork on the terms of this and get it notarized or should we see an attorney?

3) Is there more that I should know before going into this? Or a direction you can send me?

Thank You.

Answer 1

Suggest you draft up your paperwork and obtain legal advice, then sign it and have it notarized.

If you're in title and not on mortgage, you aren't responsib le for mortgage, but can lose due to her default on mortgage or other liens she puts on home.

Few benefits to you. You don't get benefits of itemizing your taxes due to mortgage interest and reas estate taxes paid. You aare liable for taxes as owner of property. Might even impact your ability to buy something of your own later. Will prevent you from being first time homebuyer and getting credit in future.

Answer 2

She is responsbile for the mortgage. YOu may be responsible for taxes, insurance, HOA fees, whatever as a co-owner.



YOu also would be entitled to whatever compensation you can decide is fair in order to sign away your interest if the house is sold.



I REALLY recommend paying a lawyer to draft an agreement about who pays for what and who gets what if the house is sold or foreclosed; or if someone dies as well as a deed.

Answer 3

The lender will require you to sign the mortgage if you are on the deed; however, you are not required to sign the promissory note. That way, you are not personally responsible for paying the mortgage but if it is foreclosed for non-payment, the lender could take over ownership of the property unless you finish paying.

Answer 4

you must show up and sign the deed of trust the tIL and the hud on the purchase. It has nothing to do with you except in the event she were to die then you get at least 1/2 of the home or you could get all if deeded JTWROS. In this case it would or could be titled TIC