Detailed Answer
In Alabama, paying the mortgage on a property does not by itself give you an ownership interest. Ownership depends on who holds title as recorded in the deed.
Mortgage vs. Title: When someone borrows money to buy real estate, they hold legal title as the mortgagor, and the lender holds a lien. Your mortgage payments simply reduce the debt; they do not transfer title or create co-ownership.
Writing Requirement: Alabama’s Statute of Frauds requires any agreement to transfer an interest in land to be in writing and signed by the grantor. See Alabama Code § 8-9-2 (Statute of Frauds). A verbal promise to grant you an interest in exchange for mortgage payments is unenforceable.
Equitable Remedies: In limited cases, a payment contributor can seek an equitable remedy—such as a constructive trust or equitable lien—if there is clear evidence of an agreement to share ownership. Alabama courts require written proof or a strong implied agreement. See Ala. Code § 35-10-1 (Equity of Redemption).
Helpful Hints
- Review the deed: only those named on the recorded deed hold title.
- Create a written agreement: document any promise to grant you an interest.
- Record your interest: file a deed or notice in the county land records.
- Keep thorough records: save payment receipts and communication records.
- Consult early: speak with an Alabama attorney to prepare proper documents.
Disclaimer: This article provides general information on Alabama law and does not constitute legal advice. For advice specific to your situation, consult a qualified attorney.