Who is responsible for the loan on my parents' home after a deed transfer?

Full question:

My parents deeded heir home to my brother. My brother obtsined a loan on the home to buy his own home. If my brother adds his two other brother to my parents home via a deed. who has to pay the loan on my brother got on my parents home?

  • Category: Real Property
  • Subcategory: Mortgage Satisfaction
  • Date:
  • State: California

Answer:

Ownership indicated by a deed is separate from the loan responsibility. Only the individuals named on the loan are liable for its repayment, regardless of who is on the deed. Your brother can create a private agreement, like a promissory note, with his brothers to share the loan payments, but this is not legally required.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Yes, a brother and sister can buy a house together. They can co-own the property by holding the title as joint tenants or tenants in common. This means they will share ownership rights and responsibilities. It's important to have a clear agreement on how costs, responsibilities, and proceeds from any sale will be handled.