Legal Question in Real Estate Law in California
Adding name to an existing title
My boyfried just bought a house and he arranged the financing in his name due to my bad credit. We would like to own the house together and are researching into signing a contract to share the payments 50%/50%, including the downpayment which I will pay him back for (we are not ready to get married yet). I was told that in order for me to share the tax advantage on interest payment my name would have to be added to the title. I was wondering what the cost of this addition would be and what implications on his credit would be if my name was added.
2 Answers from Attorneys
Re: Adding name to an existing title
It is not necessary for both names to be on title to share the tax write-offs. The IRS doesn't particularly care who takes the write off, as long as it is only done once.
However, it is a good idea to have both names on title and to have a co-ownership agreement between the parties. I have seen too many situations where there is no written co-ownership agreement, and then something goes wrong. That does not mean a dispute between the two of you, but an untimely death could cause problems.
Having both names on title will not affect his credit, but could expose the property to liens if you are still having a problem.
I can give you some consultation, and prepare a co-ownership agreement which would protect both of you and the credit standings.
Re: Adding name to an existing title
You should have a written ownership agreement between the two of you which covers the property ownership issues--this will protect both of your interests.
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