Detailed Answer
Paying the mortgage on a property does not automatically give you ownership under Nebraska law. Mortgage payments satisfy the debt secured by the property but do not transfer or create title. Title to real estate in Nebraska is determined by the deed, not by who pays the mortgage.
Legal Title vs. Equitable Interest
When a lender records a mortgage under Neb. Rev. Stat. § 76-901 (Neb. Rev. Stat. § 76-901), it creates a lien on the property securing the loan. The borrower (mortgagor) retains legal title, and the lender holds a security interest. Payments reduce the debt but do not change ownership.
If your name is not on the deed, you hold no legal title. In limited situations, Nebraska courts may recognize an equitable interest such as a resulting or constructive trust if you can prove contribution to the purchase price or mortgage under principles of unjust enrichment. However, asserting that interest requires litigation and clear evidence that the parties intended your payment to translate into ownership.
Common Scenarios
- Spouse or Partner Payments: Nebraska is a common-law property state, not a community-property jurisdiction. Even if you pay the mortgage, you may not acquire an interest unless your name appears on the deed or you have an agreement.
- Oral Agreements: Courts generally require written agreements to establish property interests under the Statute of Frauds. An oral promise that you will get a share in exchange for mortgage payments may not suffice.
- Recorded Deeds: Always ensure your interest is in writing and recorded. Neb. Rev. Stat. § 76-703 outlines deed requirements for land conveyances.
Helpful Hints
- Review the deed to confirm whose name holds title.
- Obtain a written agreement if you intend to acquire an ownership interest.
- Record any deed or agreement with the county register of deeds.
- Consider title insurance to protect any claimed interest.
- Consult a real estate attorney for drafting trusts or partnership agreements.
Disclaimer: This article does not provide legal advice. For advice tailored to your situation, consult a licensed attorney in Nebraska.