Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney in Delaware for guidance on your specific situation.
Detailed Answer
Under Delaware law, ownership of real property is determined by the deed recorded at the county Recorder of Deeds. A mortgage is simply a lien against the property securing repayment to the lender. Making mortgage payments alone does not automatically give you legal title or an ownership interest in the property.
1. Legal Title vs. Mortgage Lien
The person named on the deed holds legal title. The mortgage secures the lender’s right to foreclose if payments are missed. Paying down the mortgage reduces the debt, but it does not change the party listed on the deed.
2. Equitable Interests and Trust Claims
In some circumstances, you may acquire an equitable interest under theories such as a resulting trust or constructive trust if you can show that:
- There was a clear, mutual agreement or expectation that you would share in ownership.
- You provided substantial funds toward the mortgage or improvements based on that understanding.
- It would be unfair or unjust to allow the deed holder to keep full ownership.
Delaware courts may recognize such claims to prevent unjust enrichment, but success depends on strong evidence of agreement and reliance. You should seek legal advice promptly to explore these complex equitable remedies.
3. Practical Steps to Protect Your Interest
To ensure you obtain an ownership interest before making payments, consider the following:
- Have your name added to the deed through a formal deed transfer recorded at Delaware Recorder of Deeds.
- Enter a written agreement (e.g., co-ownership agreement or land contract) spelling out each party’s contributions and ownership percentages.
- Obtain title insurance that names you as an insured owner.
Helpful Hints
- Review your deed early: Verify whose names appear and check for any liens or encumbrances.
- Document all payments: Keep records of mortgage payments, escrow deposits, and home improvement costs.
- Get agreements in writing: Oral promises are hard to enforce in court.
- Consult a real estate attorney: They can draft deeds, agreements, and explain equitable claims under Delaware law.
- Consider title searches: A title professional can identify unrecorded interests or title defects.