Legal Question in Real Estate Law in Texas
putting 50% of a house in my name
I gave a friend money to put a down payment on a house in texas along with his money. We agreed that he would get a mortgage in his name which he did, and after the closing, he would add my name on the deed through a quitdeed or other method. We were told now that if we did, the mortgage company would have to be involved and they may assume that he can't make mortgage payments. What is the best way for me to be able to claim that I own 50% of the house and if it was ever sold, I would get half, other than him putting it in his will. I don't want to wait for him to die but want to be assured that legally, he owes me the money I gave him. We did this on the understanding that we are to equally share the expenses and proceeds if the house was ever sold. Someone mentioned a promisary note that I would have to be paid first if the house was ever sold but don't know if thats true. The house was purchased in Nov. 2008
1 Answer from Attorneys
Re: putting 50% of a house in my name
It depends on the loan documents. Most loan documents have a "due on sale" clause in them. This means that if any portion of the house is transferred, the bank has the option to call the entire amount of the loan due and payable. Many banks will waive this provision, if you ask nicely. They will have to do this in writing (a one sentence letter will suffice.) After that, the owner/mortgagee can transfer one-half interest to whomever. Do NOT use a quitclaim to do this.
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