What are the dangers of signing a deed?

[kcharles]

What is the name of your state? Pennsylvania.

Hello,
My friend back home in pennsylvania has informed me that her and her boyfriend are going to buy a house. He's going to actually buy the house and she's just gonna live there, but her name will be on the deed of the house as well. Whenever talks of marriage come up he freezes and avoids the issue completely, yet they're raising their first born and are getting ready to move into their new home. My question is this. If they part ways in the future what potential dangers await her if she signs the deed to this house? How can he come after her legally and what position will she be in to defend herself if she was a stay at home mom and didn't contribute financially to the house. We're all very young adults who are trying to learn how to be better, more responsible adults and it's easy to get caught up in the romance of buying a new home so while she's caught up in the romance I guess I'm trying to find out if signing the deed could prove to be more harm than good. Thank you for your help.

 

[Kismetcat]

She would be responsible if he defaulted on the mortgage payments. So if he walked out she would end up stuck. However if they split and her name was on the deed she could claim half of the asset.

Just because she is a stay at home mom doesn't mean she isn't contributing financially. She is the driver, caregiver, errand runner, cleaner and so on. What she contributes is time which is more precious then working full time to haul in money and paying someone to watch your children.

 

[kcharles]

I'm not implying that being a stay at home mom isn't work, not at all. I'm simply stating that she will not be contributing the household financially and I wasn't sure if he could come after her for half of everything. I'm just wondering if it would be a wise idea or not for her to sign the deed. My friends are my family and I want to make sure she's not gonna do something that could end up causing nothing but frustration, money, and continued heartache.

 

[Ohiogal]

She would be responsible if he defaulted on the mortgage payments. So if he walked out she would end up stuck. However if they split and her name was on the deed she could claim half of the asset.

Just because she is a stay at home mom doesn't mean she isn't contributing financially. She is the driver, caregiver, errand runner, cleaner and so on. What she contributes is time which is more precious then working full time to haul in money and paying someone to watch your children.

BULL! You dont know what you are talking about. If she is on the DEED -- there is NO MENTION OF HER BEING ON THE MORTGAGE -- she owns the house with him. A deed gives her ownership but NOT financial responsibility. Now if she is also on the mortgage with him then they are both jointly and severally liable for the mortgage.

 

[Ohiogal]

I'm not implying that being a stay at home mom isn't work, not at all. I'm simply stating that she will not be contributing the household financially and I wasn't sure if he could come after her for half of everything. I'm just wondering if it would be a wise idea or not for her to sign the deed. My friends are my family and I want to make sure she's not gonna do something that could end up causing nothing but frustration, money, and continued heartache.

If she can get on the deed and not the mortgage -- which you haven't mentioned the mortgage -- i would tell her to be on the deed. HOWEVER to be on the deed she doesn't SIGN anything. The only ones signing the deed are a notary and the prior owners when they deed the house to the buyers (your friend and her boyfriend). if she is not on the deed then she is NOTHING but a tenant and has no ownership interest in the house.
Now if you are talking about signing the mortgage, tell her not to do that unless she is also going to be on the deed. She does not want financial responsibility for a house that she does NOT have an ownership interest in.

 

[danno6925]

She would be responsible if he defaulted on the mortgage payments.WRONG WRONG WRONG!!! ONLY IF HER NAME APPEARED ON THE NOTE AND THE MORTGAGE WOULD SHE BE FINANCIALLY RESPONSIBLE FOR ANYTHING. PERIOD! So if he walked out she would end up stuck. *READ THE POST. The boyfriend is taking care of the financial obligation. Why the hell would a guy buy the house, become financially responsible for the house, and then leave??* However if they split and her name was on the deed she could claim half of the asset.

UGH...

Kismetcat:
You need to begin or end your posts with something that lets others know you are not an expert.

Kcharles:
If the GF is on the deed, but not the note(promise to pay) or the mortgage (recorded version of the promise to pay on file at the courthouse) she is under ZERO financial obligation to the BF.

Since she would be on the deed, the GF would be entitled to 50% of the proceeds of the sale as someone who owns an interest in the property. If it's looking like this guy will one day have to part ways with her, I would say that she should NOT go on the deed.

Inasmuch as your question was regarding potential liabilities to HER, there would be none so long as she is a non-borrowing buyer and is mentioned nowhere on the note or the mortgage(s). There are a few lenders in PA that will not lend money in that scenario.

I am not an attorney. I have worked in PA title insurance since 2000.

 

[kcharles]

I'm not sure if she's on the mortgage or not honestly. I'm getting these details a bit at a time as I'm living in georgia and she's in PA so we don't talk to often.
So if the only thing that her name is on is on the deed then if she leaves at a later date will she be liable for anything at all or will he just take her name off the deed? I don't care much for this guy and I want to know that she's going to be alright if he tries to come after her for money or anything like that. It's a big step they're taking that only they agree on and us friends can't stop'em but we want to keep her from becoming financially ruined should she decide to one day leave.

 

[danno6925]

Just the opposite...

So long as she doesn't allow him to place her name on any documents with the exception of the deed, your friend will have no financial liability to the BF whatsoever, no matter what he tries to claim later. That's the important bit that she needs to understand.That way when the house is eventually sold, she retains 50% ownership and would likely receive 50% of the proceeds of the sale. Since she's a stay at home mom, it is probably not a wise idea to accept financial responsibility unless she has the means make a significant contribution to the situation financially.

I hope this helps you decide what to tell your friend.

 

[Ohiogal]

I'm not sure if she's on the mortgage or not honestly. I'm getting these details a bit at a time as I'm living in georgia and she's in PA so we don't talk to often.
So if the only thing that her name is on is on the deed then if she leaves at a later date will she be liable for anything at all or will he just take her name off the deed? I don't care much for this guy and I want to know that she's going to be alright if he tries to come after her for money or anything like that. It's a big step they're taking that only they agree on and us friends can't stop'em but we want to keep her from becoming financially ruined should she decide to one day leave.

Boyfriend cannot just take her name off the deed. She would have to deed her portion to him. And a smart girl would NOT deed her portion of a house to anyone without receiving a fair amount of equity that is in the house.