Legal Question in Real Estate Law in Michigan

Re: Problems closing on a home

You probably have no cause to sue unless you have suffered money damages as a result of the delay and there was not good cause for the delay.

As far as the loan itself goes, if you are putting your own money down, you either need to be on the deed or have some type of security for your portion of the down payment, if any. Your name does not automatically get added to the title when you get married. It sounds as though you are not getting the legal protection you need and you may be getting bad advice from the mortgage people. My best advice is to have an attorney review your situation before closing. You can call me at (248) 679-1552 for more information.

Good luck.

Re: Problems closing on a home

The circumstances as described could be a violation of the Elliott-Larsen Civil Rights Act, which constitutes much of the civil rights laws of Michigan. Section 37.2504 of the Act states, in part:

"A person to whom application is made for financial assistance or financing in connection with a real estate transaction or in connection with the construction, rehabilitation, repair, maintenance, or improvement of real property, or a representative of that person, shall not:(a) Discriminate against the applicant because of the religion, race, color, national origin, age, sex, familial status, or marital status of the applicant or a person residing with the applicant."

The comments stated suggest that gender and/or marital status are being used as a criteria; however, it is possible that there are other legitimate reasons for what was done. The surrounding facts and circumstances must be investigated to determine the reason for denial of financing.

Additionally, there is no provision in Michigan law to automatically include a spouse in the title of property previously owned by the other spouse. Accordingly, if only one of you is named on the deed today, then the other has no claim of legal title to that property, unless the one whose name appears on the deed later signs a new deed to include the other person.

There is nothing "immoral" or "illegal" about two unmarried persons owning real estate, regardless of whether or not they intend to cohabitate there. Moreover, nothing prohibits a lending institution from granting the loan to one person while both of you take title to the property. This occurs quite often, and the lending institution might require that the person who is not on the promissory note sign a "subordination agreement" under which enables the lending institution to foreclose in the event that the one person on the promissory note defaults.

In any event, two unmarried persons who intend to co-own real estate should first execute a contract which provides for what should happen in a worst-case scenario, such as death, disagreement, inability to pay obligations relating to the real estate, and other circumstances. This should be done regardless of whether both persons names will appear on the deed. An experienced real estate attorney can review the issues with you and prepare a written contract. You each should retain your own attorneys, to avoid conflicts of interest.

You should contact an attorney or the Michigan Civil Rights Commission, to discuss the particular facts and circumstances which affect your rights and obligations. This response may not be relied upon as legal advice and it is not intended to be legal advice. No attorney/client relationship is created as a result of this response. I may be contacted at 248.788.8225.