Disclaimer: This article is for informational purposes and does not constitute legal advice. Always consult a qualified attorney about your specific situation.
Understanding Mortgage Payments and Ownership Rights in North Dakota
Paying the mortgage does not automatically give you an ownership interest in a property held in someone else’s name. In North Dakota, legal ownership depends on who holds title to the real property, not who makes the loan payments.
1. Legal Title vs. Equitable Interest
Legal title resides with the person(s) named on the deed. Only those individuals have the right to sell, transfer, or encumber the property. If your name is not on the deed, you have no legal title, even if you pay the mortgage.
Equitable interests can arise when a court recognizes that someone should benefit from property due to fairness, such as through a resulting trust or constructive trust. These interests do not grant formal legal title but may allow you to claim a share in the property under certain circumstances.
2. Common Law Remedies in North Dakota
North Dakota courts may impose an equitable remedy if you can show:
- Resulting Trust: You paid funds toward the purchase price or mortgage under the expectation of shared ownership, and it would be unjust for the title holder to retain full ownership.
- Constructive Trust or Equitable Lien: You conferred a benefit on the title holder, and it would result in unjust enrichment if they kept the property free of your contribution.
These doctrines arise from case law rather than statute. You would need clear proof of intent or agreement to share ownership.
3. Writing Requirement: Statute of Frauds
Under the North Dakota Statute of Frauds (NDCC § 9-06-02), any agreement to transfer an interest in real property must be in writing. Verbal promises that you will acquire title or an ownership share are generally unenforceable.
4. Quiet Title Actions
If you believe you have an equitable interest, you may file a quiet title action under NDCC Title 47, Chapter 18. A court will examine all evidence—deeds, payment records, communications—to determine who holds legal and equitable interests in the property.
Next Steps If You’re Contributing to Mortgage Payments
To protect or assert any interest you believe you have: ensure you document every payment, get a written agreement specifying your share, and consult a real estate attorney familiar with North Dakota equitable remedies.
Helpful Hints
- Always record a written agreement or add yourself to the deed before making large payments.
- Keep detailed records of all mortgage payments, escrow contributions, and improvements you finance.
- Consider title insurance and review the title commitment for any disputes.
- If you and the title holder disagree, speak with a real estate attorney about filing a quiet title action.
- Act promptly; waiting too long may complicate your ability to claim equitable relief.