Detailed Answer
In Montana, simply paying the mortgage on real property does not automatically grant you any ownership interest. A mortgage is a lien on the property that secures repayment of a debt. The borrower named on the deed holds legal title. The lender holds only a security interest; it does not own the property (MCA 71-1-301).
To gain an ownership interest, you must be named on a recorded deed or have a separate legal agreement creating an interest. For example:
- Deed transfer: The owner executes and records a deed adding you as a co-owner (joint tenant or tenant in common).
- Equitable interest: If you and the titleholder agreed in writing that you would acquire an interest, a court may enforce that agreement (constructive trust or equitable lien) under Montana equity principles.
If you contribute to payments or improvements without a written agreement, you risk having no enforceable claim. Montana courts can order partition of jointly owned property (MCA 70-29-305), but without recorded ownership, you cannot force a partition.
Helpful Hints
- Obtain a written agreement or deed that clearly states your ownership percentage.
- Record any deed or written agreement with the county clerk and recorder’s office.
- Keep proof of mortgage payments and any improvements you fund.
- Consult an attorney before relying on an oral agreement or informal arrangement.
- Understand that being on the mortgage note alone does not equal ownership.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your situation.