Disclaimer: This article is for educational purposes and does not constitute legal advice.
Detailed Answer
When you pay a mortgage, you cover loan payments secured by real property. Mortgage payments alone do not create an ownership interest unless your name appears on the deed. Title is the primary evidence of legal ownership.
In New Jersey, you can hold property as tenancy in common, joint tenancy, or tenancy by the entirety. Each form grants co-owners specific rights to possession, division, and transfer upon death. For details on concurrent estates, see N.J.S.A. 46:3-3.
If your name is not on the deed, you generally lack title, even if you pay the mortgage. However, equity courts may recognize an equitable interest under a resulting trust when one party funds purchase or mortgage payments for property titled in another’s name. To assert this interest, you must file a claim in the Chancery Division seeking a constructive or resulting trust.
Be aware that co-signing a mortgage loan without obtaining title places you at risk for default liability without guaranteeing ownership. Always record a deed to protect your interests.
For provisions on mortgages and lender rights, see N.J.S.A. 46:8-1 et seq..
Helpful Hints
- Review the deed at your county clerk’s office to confirm who holds title.
- Obtain copies of the mortgage and deed records to verify your legal position.
- Consider a written co-ownership or reimbursement agreement if you fund payments without title.
- Record a deed promptly after purchase to secure your ownership interest.
- Consult a real estate attorney if you plan to assert an equitable interest or correct title issues.