Disclaimer: This article provides general information about Ohio law and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
Under Ohio law, simply making mortgage payments on a property does not automatically give you a legal ownership interest. Legal title to real estate rests with the person(s) named on the deed, not the mortgage note. Mortgages secure the lender’s right to foreclose if payments default; they do not confer ownership.
Key points to understand:
- Title vs. Mortgage: The deed conveys legal title; the mortgage secures repayment of funds. Paying the mortgage, without being on the deed, does not transfer title.
- Statute of Frauds (Ohio Rev. Code § 1335.05): Any agreement to transfer real property must be in writing to be enforceable. An oral promise by the deed holder to grant you interest if you pay the mortgage is likely barred by the statute of frauds. Ohio Rev. Code § 1335.05.
- Equitable Remedies: In rare cases, courts may impose a constructive trust or recognize an equitable interest if you can show fraud, unjust enrichment, or a clear agreement regarding your contributions. These claims turn on detailed facts and strong evidence.
- Recording Requirements (Ohio Rev. Code § 5302.02): To protect any real property interest, deeds or agreements must be properly recorded. Unrecorded interests risk being invalid against subsequent bona fide purchasers. Ohio Rev. Code § 5302.02.
In practice, if you want ownership rights, ensure your name appears on the deed through a proper conveyance. Consider a co-ownership structure such as joint tenancy, tenancy in common, or tenancy by the entirety (for married couples) to clarify rights and survivorship.
Helpful Hints
- Always review and sign the deed to confirm your ownership interest.
- Get any agreement in writing and record it with the county recorder’s office.
- Discuss co-ownership options like joint tenancy or tenancy in common with an attorney.
- Keep records of all mortgage payments and communications with the title holder.
- If you suspect unjust enrichment or fraud, seek prompt legal advice to explore equitable claims.