Detailed Answer
Disclaimer: This article does not constitute legal advice. It offers general information about Rhode Island law only.
Paying a mortgage loan does not, by itself, give you an ownership interest in the property under Rhode Island law. The person named on the deed holds legal title and remains the property owner even when they borrow against it. The lender holds a security interest, known as a mortgage lien, to secure repayment of the loan.
Here are key concepts:
- Legal Title vs. Security Interest
The borrower (mortgagor) retains legal title to the real property. The lender (mortgagee) holds a lien. See R.I. Gen. Laws § 34-11-2. - Equity of Redemption
As the mortgagor repays the loan, they build “equity.” That equity represents the borrower’s financial stake in the property. It does not convert you into an owner. - Joint Ownership by Agreement
To obtain an ownership interest, you need a written agreement. Rhode Island’s Statute of Frauds requires any transfer or promise to transfer an interest in real estate to be in writing. See R.I. Gen. Laws § 9-1-4. - Equitable Remedies
In limited cases, a court may impose a constructive trust or resulting trust if you can prove that you paid toward mortgage principal based on a shared intent to gain ownership. Rhode Island law follows equitable principles but does not guarantee an interest without clear evidence of an agreement or unfair enrichment.
Hypothetical Example: Jane is not on the deed but makes every mortgage payment for five years because her partner promised to add her name. Without a written contract or deed conveying an interest, Jane remains a creditor at best. She may ask the court for equitable relief, but she faces the burden of proving the intent and fairness of her expectation.
Helpful Hints
- Always get any property-sharing promises in writing before you make payments.
- Have your name added to the deed and record it at the city or town clerk’s office.
- Keep clear records of all mortgage and property-related payments you make.
- Consider a co-ownership or joint-venture agreement drafted by an attorney.
- Consult a real estate attorney to review your situation and protect your interests.