Legal Question in Real Estate Law in Missouri

Property Documents

We are located in the Kansas City area. My 23 year old son and his ''wife to be'' (spring '03 wedding planned) have been house shopping, and are in contract to buy a home.

Since the bride to be has no credit history, my son is getting the FHA loan on his own and making the down payment with only his funds (her name is not on the loan application). When it comes to the closing, should he have his name only on the documents, or should he include her name also? Would there be any advantage (to my son) in not putting her name on the documents?

Thanks for taking the time to respond!!

Asked on 11/24/02, 7:32 pm

2 Answers from Attorneys

Donald Davis Davis Attorneys

Re: Property Documents

If the property in titled in your son's name only

prior to the marriage it is classified as non-marital

property however,heaven forbid,there is a divorce,

his wife can claim the increase in

value of the property as marital property (after the marriage) for which

she would be entitled a share. He may want to consider

a pre-nuptial agreement to protect his legal

interest in the house.

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Answered on 11/26/02, 1:37 pm

Re: Property Documents

The documents will be prepared by the seller's agent and/or the title company for the closing. If the loan is in his name only, then the documents will be prepared in his name only. If the two of them want her on the loan as a co-borrower they should let their lender know right away. There are advantages and disadvantages as to whether to include her. Advantages -- helps her build credit, title as joint tenants with right of survivorship, the feeling of co-ownership. Disadvantages include -- they are not married yet, if the wedding is called off -- they will have to go through a lot of hassles to either sell the home or change the ownership interest. If it was my son, I wouldn't have him co-own a home with anyone that was not already his spouse, but that's just me. There's nothing wrong with doing it otherwise, just a personal opinion. You can always retitle the home in both names after the marriage. Best of luck, congrats on the engagement of your son!

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Answered on 11/25/02, 1:33 pm

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