 |
Three On The Deed |
| |
 |
I am purchasing a property with my brother and my son. The purchase price of the property is $156000. My brother is contributing $35000 towards the purchase of the property. The balance of the purchase price will be borrowed/mortgaged by me and my son. My mortgage broker has stated that the deed will contain all three of our names (this is fine), and that the mortgage will be in me and my sons' name (this is fine), but that my brother needs to sign the "note".
Is this correct?
My brother already contributed his share towards the property. He is not responsible for the balance - only my son and I are. Why would my brother need to be included on the "note"? |
| |
| |
 |
The note is a personal promise to repay the mortgage loan, and lending institutions usually require all owners to sign it. Each, including your brother, is considered personally responsible for the whole debt if need be.
The three of you might like to go together to a lawyer, and talk about getting a written agreement about what would happen if one of you dies, one of you goes bankrupt, gets married, gets divorced, wants to sell his share, can't make the mortgage payments, is transferred out of town, has a judgment placed against his real estate-- lawyers can usually think of a lot of other unpleasant possibilities. Discuss them ahead of time and sign a written agreement about what you would want to happen. |
| |
|
Edith
Originally published on November 20, 2007 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
