Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
In New York, paying the mortgage on a property does not automatically give you any ownership interest. Legal title to real estate is created and transferred only by a properly executed deed. Under New York Real Property Law § 291, any conveyance of an interest in land must be in writing and delivered by the grantor to be effective. Without your name on the deed, you hold no legal title. (RPL § 291).
Even if you make all mortgage payments, the deed controls ownership. The lender holds a lien for repayment, but lien rights and deed rights are distinct. Your payment protects the recorded owner from default, but it does not flip title to your name. Mortgage documents alone cannot convey title.
However, an equitable interest may arise in limited circumstances. If you and the record owner enter into a written agreement stating that you will acquire an ownership share in exchange for your payments, New York’s Statute of Frauds requires that agreement to be in writing. (GOL § 5-703).
When courts recognize an equitable interest, they often impose a constructive trust or equitable lien to prevent unjust enrichment of the titleholder. For example, if Person A pays the mortgage expecting to gain title but the deed remains with Person B, a court could award A an equitable lien. That remedy depends on proof of the parties’ shared intent and fairness considerations.
Key points to remember:
- You must hold title by deed to have legal ownership.
- Mortgage payment alone creates no deed rights.
- A written contract or clear agreement is essential for equitable claims.
- Courts may impose a constructive trust to prevent unjust enrichment.
Helpful Hints
- Review the deed: Verify whose name appears as owner on the recorded deed.
- Get it in writing: Any agreement to share ownership must be documented and signed.
- Consider a co-ownership agreement: Draft a detailed instrument outlining each party’s contributions and rights.
- Keep records: Save all payment receipts, communications, and draft agreements.
- Consult a real estate attorney: They can prepare deeds, contracts, and ensure compliance with New York law.