Expert: Dick Dennis - 3/24/2006

Question
My fiance and I are getting ready to close on a house.  We both have equal incomes and plan to make equal payments on the house. However, he had more equity from the sale of his previous house and was able to put 60K down on the house vs my 20K.  He wants to put the house in his name as an individual and draw up a separate contract as to my rights to the house if something were to happen in the relationship.  I am not comfortable with this and would prefer to be listed as a joint tenant and have a contract drawn up as to his rights with regard to the extra 40K he put into the house.  What are the risks to me if I am not listed as a joint tenant?

Answer
The fact that he wants to draw up a "separate contract as to my rights to the house if something were to happen in the relationship" is proof enough that yes you must have the title in joint tenancy with a separate accounting as you said on the side, Jan.

If you are not listed as a joint tenant if he ever should get mad at you he could boot you out of the house and you could lose your equity. As long as he started the idea you definitely should hire a REAL ESTATE attorney to set it up as you want and to protect your interests. Do not let your concern for attorney fees get in the way. It'll be chicken feed compared to later should you lose your equity.

Please understand what a joint tenancy means: equal ownership with right of survivorship. There is also "tenants in common" with which the amount of ownership is defined. For example, "John Jones, as to 60% interest, and Mary Smith, as to 40% interest, as tenants in common."

Joint tenancy cannot be defined as to how much one owns. But your separate agreement takes care of that.

I do wish you well, Jan.

Dick Dennis
dixiedee13@aol.com