Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
Under South Carolina law, paying the mortgage does not, by itself, grant you an ownership interest in real property. Legal title remains with the deed holder. A mortgage is a security interest that secures repayment of a loan; it does not transfer ownership. See SC Code Ann. Title 27, Chapter 9 for the statutory framework on mortgages.
To obtain an ownership interest, you generally must be named on the deed as a titleholder—either as a joint tenant or tenant in common. Contributions toward the mortgage can create an equitable claim in limited circumstances, such as when there is a clear agreement between the parties or when equity demands relief (e.g., a resulting trust or constructive trust). South Carolina courts may recognize such an interest if you can prove:
- A written or oral agreement existed that you would acquire title in exchange for mortgage payments.
- You paid the mortgage with the expectation of receiving an ownership stake.
- It would be unconscionable for the deed holder to retain full ownership without compensating you.
Absent these factors, a court will not automatically convert your mortgage payments into equity. You may, however, seek reimbursement for your contributions in a partition action if you later become a co-owner. See SC Code Ann. Title 27, Chapter 1 for partition statutes.
Helpful Hints
- Review the deed: Confirm who holds legal title by checking the county deed records.
- Get it in writing: Use a co-ownership or mortgage-contribution agreement to document expectations.
- Consider a “deed of trust”: In South Carolina, this instrument separates legal title (trustee) from equitable title (beneficiary).
- Keep records: Maintain detailed statements of mortgage payments, escrow disbursements, and correspondence.
- Consult an attorney: A lawyer can explain potential equitable remedies like resulting or constructive trusts.