Joint tenant??

[SHV]

What is the name of your state? AL
My boyfriend and I are to be married in April of next year. In the meantime, he is buying a house. I cannot be on the mortgage or title at this time because of a credit situation I am trying to work out. (Yes, he knows all about it.) He wants to make sure I get the house if anything happens to him before we can add me to the title and mortgage.. Other than a will, how do we go about this? I tried looking on the web and found "joint tenant," "tenant in common," etc., but I am confused. What is our best choice?

 

[Ohiogal]

Joint tenant and Tenant in Common put you on the title and make the house half yours. If he is buying it and wants you to get it should he die, he can do a transfer on death deed. that type of deed gives you NO CURRENT INTEREST but if he dies the property transfers to you. He can remove your name from the deed at any time without your permission so if you two broke up he could quit claim it to himself removing you as you have no current interest. Your interest only vests upon his death.

 

[azatty]

Joint tenancy with right of survivorship or beneficiary deed. Either can be done after he acquires title (although the JTROS will probably violate a due on sale clause likely to appear in the mortgage document), and either effects an automatic, non-probate transfer upon his death.

 

[SHV]

Thank you both. One more question; what effect could my credit problems have if I'm on the title, but not the mortgage?

 

[azatty]

Directly? Probably nothing. Indirectly, if you get sued by a creditor and the creditor obtains a judgment, the judgment could be recorded and become a lien on your interest in the property (assuming you receive a present interest in the property; beneficiary deed does not create a present interest). The lien could then be foreclosed by a forced sale of the house.

 

[SHV]

Thanks. I guess we'll have to go the "death deed" route for now. Hate to think that we won't grow old together, but with the time we live in, I guess I'll have to think hard about having him also sign a something that prohibits his removing my name without a large settlement.