Detailed Answer
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice tailored to your situation.
1. Title Ownership vs. Mortgage Payments
Under Minnesota law, the person listed on the deed holds legal title to real property. Mortgage payments alone do not transfer title rights. If your name does not appear on the deed, you have no automatic ownership interest, even if you pay the mortgage each month.
2. Equitable Remedies: Express and Resulting Trusts
You may acquire an equitable interest only if you and the titled owner have a valid agreement. That could create an express trust (a written trust agreement) or a resulting trust (courts infer your ownership based on contributions).
- Express Trust: You and the deed holder sign a written agreement spelling out your share. Courts enforce written trusts under Minn. Stat. §507.02 (Deeds; how executed).
- Resulting Trust: Absent a written agreement, you prove you intended to get an interest when you made payments. Minnesota courts have recognized these in family or close-relationship contexts.
3. Constructive Trust and Unjust Enrichment
If the deed holder promised you an ownership share and later denies it, you may ask a court to impose a constructive trust. That prevents the titled owner from unfairly keeping your contributions. You petition under Minn. Stat. §508.01 (Partition actions), though courts typically apply equitable principles from case law.
4. Recording and Priority
Even if you obtain an equitable interest, you must protect it by filing a notice or deed in the county recorder’s office. Under the recording statutes (Minn. Stat. §507.03 — Memorialization of conveyances), later buyers or lenders cannot claim priority over your interest once it appears in public records.
5. Practical Steps to Secure Your Interest
The most reliable way to obtain ownership rights is to join the deed or sign a co-ownership agreement before making payments. You can also ask the titled owner to grant you a tenancy in common, which lets each co-owner hold an undivided share.
Helpful Hints
- Get written agreements: Always document any promises about sharing title.
- File a notice: Record your interest in the county land records to protect priority.
- Consult early: Talk to a real estate attorney before you start making large payments.
- Understand terms: Know the difference between holding title, holding a mortgage obligation, and having an equitable lien.
- Keep records: Save bank statements or canceled checks showing your mortgage contributions.