Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
Paying the mortgage on a property does not by itself give you an ownership interest in California. Title and mortgage are separate. The deed determines who owns the land; the mortgage secures the lender’s right to repayment. Unless your name appears on the deed, you won’t automatically become an owner simply by making the payments.
1. Title vs. Mortgage
The deed transfers ownership. The mortgage or deed of trust secures the loan. Paying the mortgage benefits the borrower on title, but does not change title ownership.
2. Married Couples and Registered Domestic Partners
California presumes that all assets acquired during marriage or domestic partnership are community property. Under Family Code §760, both spouses or partners share equal ownership of community assets, including mortgage payments made on community property.
3. Unmarried Individuals
If you and the titleholder are not married or registered partners, California presumes a gift when one person pays for property in another’s name. To claim an interest, you must show a resulting trust, proven by clear evidence that you intended to retain an interest. Courts may impose a constructive trust if the titleholder would be unjustly enriched.
4. How to Secure an Interest
To protect yourself, record a written agreement describing your contribution and interest. Alternatively, ask to be added to the deed or obtain a promissory note or lien against the property. If disputes arise, you can file a quiet title action under Code of Civil Procedure §761.020.
Helpful Hints
- Always check whose name is on the deed before making payments.
- Get any agreement in writing and have it notarized.
- Consider adding your name to the title if you intend to share ownership.
- Keep records of all payments you make toward the mortgage and expenses.
- Consult an attorney promptly if the titleholder refuses to honor your contributions.