Legal Question in Real Estate Law in Massachusetts
My girl friend wants to purchase a house and had requested I assist her in this endeavor. I am willing to cover the cost of legal fees closing cost and the mandated down payment.
But in that we have no plans to marry any time in the near future, I am reluctant to be obligated on a long term installment note, just in case the relationship doesn't work out.
(with understanding that any such agreements must first be approved by the lender) is there a way for my girlfriend to be the only one listed on the installment note and mortgage and just my name on the deed. Which would secure my financial investment equity in the property. Such as a secondary agreement as an attachment to the signed agreement my girlfriend enters into with the lender. My girl friend does have good credit, but not the funds to cover the cost of purchase. I would like to know my varying options. Thanks
1 Answer from Attorneys
You are correct to be apprehensive about this arrangement. You have a number of options here, and I strongly recommend consulting with a real estate attorney and putting written property ownership agreement in place. If you don't want to be obligated to the note, you should have your girlfriend apply for and obtain a loan on her own. The question is then how do you secure your loan to her. You can take a mortgage on the property, just like her bank lender, or you can simply take title to the home together with her. Again, you want to have an agreement in that case to make clear what portion of the equity in the property you would like to get back someday if the property sells or you decide to break up. Our office prepares property ownership agreements and handles real estate transactions - including closings - for individuals throughout Massachusetts. You are asking the right questions!
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