Detailed Answer
In Wisconsin, simply paying the mortgage does not automatically give you an ownership interest in the real property. Ownership depends on whose name appears on the deed. A mortgage creates a lien that secures repayment of a loan. The lender holds a security interest, not you as the mortgage payer, unless your name is on the deed or there is a valid agreement granting you equity.
Legal Title vs. Equitable Title
Legal title refers to the name or names listed on the deed. Equitable title refers to a party’s right to benefit from the property’s value. In most cases, if you are not on the deed, you have neither legal nor equitable title—even if you pay the mortgage.
Mortgage as a Lien
A mortgage in Wisconsin is governed by Wis. Stat. ch. 708. The mortgage creates a lien on the property securing repayment of the loan. The lien does not transfer title. See Wis. Stat. § 708.05 for execution requirements of mortgages.
When Payments May Create an Equity Interest
Under rare circumstances, a court may recognize a resulting trust or constructive trust if you and the titleholder had a clear agreement that your mortgage payments would secure you an interest. To enforce such an interest, you must show:
- A clear, mutual understanding that your payments would give you an ownership share.
- Evidence of contributions toward purchase or improvements beyond normal household expenses.
- That it would be unjust for the legal owner to retain full ownership without compensating you.
Without written agreements, Wisconsin courts rely on objective evidence of intent and contribution. See Wis. Stat. § 706.01 on conveyance formalities.
Helpful Hints
- Request a copy of the deed from the county register of deeds to see who holds title.
- Keep records of all mortgage payments and any written agreements with the titleholder.
- Consider executing a co-ownership agreement or adding your name to the deed through a quitclaim deed if both parties agree.
- Discuss options like joint tenancy or tenancy in common to formalize ownership interests.
- Consult a real estate attorney to draft or review any agreements and ensure your interests are protected.
Disclaimer: This article is for informational purposes only and is not legal advice. Consult a qualified attorney to address your specific situation.