What is the liability, if any, to be put on a deed for a house you are renting? I'm not talking about rent-to-own or lease-to-own or anything.
My landlord says he needs to put my (to be) housemates and I on the deed to the property (so that we along with him are owners, ie all our names will be on the deed at once) for the duration of our stay. When we sign the lease we will also sign papers acknowledging and consenting to the addition of each of our names to the deed. We will also sign forms, which he will put on file, that take our names off of the deed (there are 3 of us), making him the sole owner again. He said he talked to his lawyers and they confirmed that this was a legal arrangement.
I realize this sounds highly unusual, but because of a local ordinance which forbids "students" from renting houses in the neighborhood, my landlord has used adding people to the deed during their lease(s) to circumvent any possible enforcement of the ordinance on his (student) tenants.
To my understanding the ordinance itself is unconstitutional (discrimination in the dispensation of housing based on family status), however the ordinance was upheld in Philadelphia district court when landlords who owned in the neighborhood sued. The sections of the judge's opinion on the ordinance focused on the rights of the community to assert control over the composition of the neighborhood (students were being uncooperative and causing problems).
So basically we will be on the deed as long as we continue to rent. This is supposed to protect us from any potential enforcement of the anti-student renter ordinance. Since we will be on the deed, we are all technically owners, and residents, not renters.
Regardless of the background, what kind of liability could we face while having our names on the deed? Could he take out a lean or mortgage in our name since we're all on the deed? Are there ramifications if any??What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?