Deed of Trust (joint ownership)

What is the name of your state? Colorado

I am about to enter into a joint partnership on a house, in which I will hold the deed of trust; owning 1/5 of the property, which I will be paying up front as the down payment. The other individual in the partnership will be acquiring a loan for the remainder of the cost.
Are there any gotchas I need to worry about with this sort of setup? The obvious ones withstanding, ie their default on the loan etc. What sort of tax liabilities will I incur, if any? I don't expect any problems from the partner; however, I haven't found that much information about a Deed of Trust and want to make sure that I am covered legally in case something unforseen happens.

Thanks in Advance.

jzcurry said:

What is the name of your state? Colorado

I am about to enter into a joint partnership on a house, in which I will hold the deed of trust; owning 1/5 of the property, which I will be paying up front as the down payment. The other individual in the partnership will be acquiring a loan for the remainder of the cost.
Are there any gotchas I need to worry about with this sort of setup? The obvious ones withstanding, ie their default on the loan etc. What sort of tax liabilities will I incur, if any? I don't expect any problems from the partner; however, I haven't found that much information about a Deed of Trust and want to make sure that I am covered legally in case something unforseen happens.

Thanks in Advance.

Click to expand...

**A: post tax questions in the Tax Law forum.

Not only taxes

Thank, I will post a separate thread relating to taxes. However, I have more than one question, and I believe this to be the appropiate forum. The tax question was a bit of an afterthought, what I really need information on is a deed of trust and my rights as I guest the trustee under such.

Thanks

jzcurry said:

Thank, I will post a separate thread relating to taxes. However, I have more than one question, and I believe this to be the appropiate forum. The tax question was a bit of an afterthought, what I really need information on is a deed of trust and my rights as I guest the trustee under such.

Thanks

Click to expand...

**A: you guest the trustee? You are trying so hard to sound like you know what you are talking about that your posts are confusing.
Now be our guest and post better.

got up on the wrong side of the bed?

veronicalouise said:

got up on the wrong side of the bed?

Click to expand...

**A: yes and you were gone.

Deed of Trust

Sorry, typo, guest == guess.
Ok, simple questions
What exactly is a deed of trust when used in a partnership? The only information I can find on it sasys A. That it is used a mortgage in some states, including mine Colorado. B. That it is used when a third party (trustee) holds the deed to the house until such time that the loan has been repayed. All information I have found doesn't seem to mention the third party as a part owner.

My situation is as follows:
I will be providing a 1/5 of the cost of the property as a down payment, and will subsequently own 1/5 of this property. I have been told that I need a deed of trust to show that I in fact own 1/5 of the property legally. So, that if anything unforseen happens, etc, that other party cannot try to claim complete ownership.

Thanks again