Detailed Answer
In Massachusetts, title to real property and mortgage obligations operate separately. The deed or other conveyance instrument determines legal ownership. A mortgage secures a loan against the property. If you pay the mortgage on property that someone else owns, you become a creditor, not an owner. Unless you also receive an interest in title via deed or written agreement, you gain no automatic ownership interest. Even if you make all mortgage payments, the law presumes you acted as a surety or loan guarantor. See M.G.L. c. 183, § 21 (discharge of mortgage).
However, you may claim an equitable interest under a resulting trust if the parties intended you to obtain an ownership interest. A resulting trust can arise when one person provides funds for the purchase price or mortgage payments but title is placed in another’s name without adequate explanation. To pursue this remedy, you would file a petition in equity under M.G.L. c. 214, § 1. The court examines the intent of the parties and the circumstances of the contribution. If successful, the court can impose a trust awarding you an interest proportional to your contributions.
If you and the titled owner act as co-owners or cohabitants, you might raise a constructive trust or equitable lien claim. A constructive trust prevents unjust enrichment when one person benefits from another’s contribution without fair exchange. You must prove, by clear and convincing evidence, that you paid with the expectation of a share in ownership and that it would be unjust for the titled owner to retain full title without compensating you.
Co-owners can also petition for partition under M.G.L. c. 241, § 1. Partition lets the court divide the property or sell it and distribute proceeds according to ownership interests.
Disclaimer
Disclaimer: This article provides general information under Massachusetts law and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Helpful Hints
- Review the recorded deed to confirm legal ownership.
- Request a written agreement if you expect an ownership share.
- Keep detailed records of all mortgage payments you make.
- Consider a formal co-ownership agreement for clarity.
- Seek legal counsel promptly to protect your rights.