Detailed Answer
When you make mortgage payments on a property but your name does not appear on the deed, you generally do not gain legal title or a formal ownership interest simply by paying the loan. Under Missouri law, legal ownership of real estate vests with the person or entity listed on the recorded deed. The mortgage secures the lender’s interest, not yours, unless you are listed as a borrower or co-owner on the deed.
Legal Title vs. Equitable Interest
The deed is the conclusive evidence of legal title. If your name is absent from the deed, courts will presume you have no ownership interest, even if you service the mortgage debt. However, Missouri courts can recognize an equitable interest through a resulting trust or a constructive trust when fairness demands.
- Resulting Trust – Occurs when one party provides funds to purchase property but title is taken in another’s name. The court may “result” trust property back to the contributor. See Missouri Uniform Trust Code, Ch. 456 (Mo. Rev. Stat. Ch. 456).
- Constructive Trust – Imposed to prevent unjust enrichment if the title holder engaged in fraud, mistake, or breach of a fiduciary duty. (Hamilton v. Herrin, 198 S.W.3d 486 (Mo. App. 2006)).
Spousal and Divorce Considerations
In divorce, Missouri law treats property as marital or separate. Payments on a marital mortgage typically count toward marital property during equitable distribution. See RSMo §452.330.
Protecting Your Interest
To secure an ownership interest, consider taking these steps:
- Obtain an express written agreement documenting your contribution and ownership percentage.
- Ask to be added to the deed and, if applicable, the mortgage note.
- Record any agreement in the county recorder’s office.
- Keep clear financial records of all payments made.
Disclaimer: This is for general informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice tailored to your situation.
Helpful Hints
- Review the deed early to confirm who holds legal title.
- Secure a written co-ownership agreement before making payments.
- Keep copies of all payment records and correspondence.
- Consider title insurance to protect potential equity claims.
- Talk to an attorney about possible equitable remedies if you are denied an ownership interest.