I own a townhouse in NJ. My brother lives with me and contributes to half of all expenses associated with the house. If I add his name to the deed (not the mortgage), what property rights is he entitled to? Could I sell the house without his consent? Can he claim the house on his income taxes?
2006-08-16 03:15:37 · 7 answers · asked by blasianzeta7 1 in Business & Finance ➔ Renting & Real Estate
This is a very bad idea. He would become a part owner but would have no legal liability for the mortgage, which you couldn't add him to anyway.
Although rare, the lender could demand payment in full of the mortgage. Most mortgages have a "due on sale" clause and adding your brother to the deed would constitute a sale.
Whether or not either of you could sell the house without the consent of the other is a question for a local attorney. Generally, joint tenants cannot sell without the other's consent. Tenants in common may sell their share without the other's consent, but can't force the other TIC to sell.
He might be able to claim half of the real estate taxes if his name is on the deed, but won't be able to claim any of the mortgage interest. This would be a question for a tax professional.
Don't even think about doing this without consulting with a real estate attorney and a qualified tax professional (tax attorney or CPA -- NOT a tax preparer at H&R Block!)
2006-08-16 05:45:12 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
He will own half the property but not be liable for the mortgage if it goes into default for any reason. You would not be able to sell the house with out his consent because on a deed both parties (the grantors) must sign at the time of the sale. I'm not sure about claiming the house on his income taxes, maybe someone else will know.
2006-08-16 03:31:17 · answer #2 · answered by 10 pts for me? 4 · 0⤊ 0⤋
If you add your brother to the deed then he owns half the property. You couldn't sell or refinance without his written consent. As for deducting the interest on his income taxes, I would say yes but you should contact a CPA or tax professional.
2006-08-16 03:25:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Adding Name To Deed
2016-11-07 08:56:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If you add him to the title he has rights as a owner. You cannot sell without his signature on the deed transferring title to the new buyer. He has a right to claim the deuctions equivalent to his percentage of ownership (i.e an undivided one half interest, an undivided 1/4 intrest, whatever you designate upon putting him in title).
This is a serious undertaking, get things all worked out and get them in writing.
2006-08-16 03:45:36 · answer #5 · answered by Anonymous · 0⤊ 0⤋
For your protection, you should contact a Real Estate Attorney in the NJ area for a question this serious.
2006-08-16 03:21:27 · answer #6 · answered by chocolatebabycakes 4 · 0⤊ 0⤋
Unless u hold the mortgage- u have nothing.
2006-08-16 03:22:06 · answer #7 · answered by o2bamy25 3 · 0⤊ 0⤋