Detailed Answer
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.
1. Legal Title vs. Mortgage Payments
Under Connecticut law, the person named on the deed holds legal title to real property. A mortgage creates a lien on that property in favor of the lender—it does not transfer ownership. Simply making mortgage payments does not automatically give you any legal or equitable interest if your name isn’t on the deed. (See Conn. Gen. Stat. § 49-1 et seq.: Title 49, Real Property.)
2. Equitable Interest and Constructive Trusts
Although you lack legal title, you may have an equitable interest in rare cases. Connecticut courts can impose a constructive trust when one person pays the mortgage on property held in another’s name but an agreement or fraud exists. You must demonstrate:
- A clear agreement or promise (written or strongly evidenced) that you would gain an ownership share;
- Detrimental reliance—meaning you’d suffer loss if the promise isn’t enforced;
- A relationship of trust and confidence or circumstances of unfairness or fraud.
If successful, the court may award you a percentage of the property’s equity equivalent to your contributions. See Guaranty Bank v. Countrywide (Conn. App. Ct. 2018) for an example of when Connecticut courts recognize constructive trusts.
3. Written Agreements Are Crucial
To protect yourself, always get a written agreement specifying ownership percentages or repayment terms. A simple memorandum signed by both parties can help establish your rights if the matter ends up in court.
4. Recording and Title Search
Connecticut requires recording deeds and mortgages in the town clerk’s office where the property lies (Conn. Gen. Stat. § 49-4: Recording Requirements). If your name isn’t on the deed or as a nominee on a recorded document, title searches will not reveal any ownership interest.
Helpful Hints
- Always execute a written co‐ownership or reimbursement agreement before making payments.
- Request your name on the deed if you intend to gain legal title.
- Keep records of every payment and communication about ownership expectations.
- Consult an attorney promptly if the property owner refuses to honor your contributions.
- Consider title insurance or an estoppel certificate confirming no undisclosed interests.