Detailed Answer: Mortgage Payments and Ownership Interest in Michigan
Paying a mortgage loan for property does not automatically grant you an ownership interest in Michigan. Legal title transfers only by a valid deed executed and recorded under the Michigan Recording Act (MCL 554.201 et seq.). The Statute of Frauds (MCL 566.132) also requires any agreement affecting title to land to be in writing and signed by the party to be charged.
Equity can offer limited relief in narrow circumstances. If you paid part or all of the mortgage with the expectation of acquiring an interest, a Michigan court may impose a resulting trust or equitable lien to prevent unjust enrichment. To succeed, you must show:
- An agreement—oral or written—indicating you would gain an interest.
- Full or partial mortgage payments made by you.
- A court finding that retaining full title without compensating you would be unfair.
Resulting trust claims must comply with the six-year limitations period under MCL 600.5807(8). Without a deed or enforceable contract, you bear the burden of proving equity requires relief.
In summary, simply paying the mortgage alone does not give you an ownership interest. You need a deed or a clear written agreement, or you risk relying on narrow equitable remedies.
Helpful Hints
- Obtain a deed naming you as an owner and record it with the county register of deeds.
- Draft a written agreement if you expect ownership rights in exchange for mortgage payments.
- Keep records of all mortgage payments you make, including dates and amounts.
- Consider a title search to confirm current ownership and any existing liens.
- Consult a licensed Michigan attorney before relying on implied interests or equitable claims.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Consult an attorney to address your specific situation.