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Can someone sell a house if your name is on the deed?
In this article, you’ll learn about:
Let’s dig in.
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Yes, someone can sell a house if your name is on the deed, but it depends on the type of ownership.
We cover this more in depth further below.
If your name is not on the deed, you typically do not have any ownership rights to the property.
A deed is a legal document that establishes who owns a property.
If your name is not listed on it, you’re not recognized as an owner.
You won’t have the right to sell the property or make decisions regarding its use.
Furthermore, if the property is sold, you generally wouldn’t have any claim to the proceeds from the sale.
But, there can be exceptions.
For example, let’s say you are married and live in a community property state.
You may have some rights even if your name is not on the deed.
In these states, property acquired during the marriage is often considered jointly owned, regardless of whose name is on the deed.
Another exception could be if you have a written or verbal agreement with the person whose name is on the deed.
This could grant you certain rights, although enforcing such an agreement can be difficult and may require legal action.
Read More: Am I Entitled To My Husband’s Property If He Dies And My Name Isn’t On The Deed?
When your name is on a deed but not the mortgage, you’re still an owner of the property.
You have the right to live there, rent it out, or sell it, subject to agreements with any other owners.
You don’t have legal responsibility for the mortgage debt.
That responsibility belongs to the people who signed the mortgage papers.
If mortgage payments stop, the lender can’t pursue you directly for the money.
However, there is a downside.
If mortgage payments stop, the lender can foreclose.
They can sell the property to recoup the unpaid debt.
So, you can lose your property, even though you’re not responsible for the mortgage debt.
If you choose to sell the property, you may not get all the sale proceeds.
The mortgage must be paid off before you see any profit.
If the mortgage balance is large, this could considerably lower your financial gain from selling.
Read More: What Are My Rights If My Name Is On A Deed?
Removing a person’s name from a deed without their knowledge or agreement isn’t typically possible.
Deeds are legal documents, and altering them requires a legal procedure.
Usually, all named parties on the deed must agree to any changes, including removing a name.
This agreement typically involves signing a new deed that shows the updated ownership details.
This new deed then needs to be officially recorded at a government office, often the county recorder’s office.
If the parties disagree about changes to the deed, a court order might be needed.
For instance, during a divorce or a partition lawsuit, a court could mandate changes to the deed.
Remember, trying to remove a person’s name from a deed without their agreement could be viewed as fraud.
This can result in severe legal penalties.
Read More: Do You Need A Lawyer To Remove A Name From A Deed?
A deed transfers property ownership from the seller (grantor) to the buyer (grantee).
It includes important information about:
A deed becomes official when both parties sign and the grantee receives it.
Deeds are important because they formally transfer ownership rights.
They’re the main proof of who owns a property.
In many places, recording the deed at a local government office is a legal requirement.
This ensures that it’s part of the public record.
A deed usually contains the following components:
There are various kinds of deeds.
And each provides different levels of protection for the buyer:
Let’s look at the legal aspects of someone selling a house if your name is on the deed.
Property ownership is the legal right to possess and use property.
The owner can use the property as they wish, within law boundaries.
The property could be owned by one person or shared.
There are three main types of shared property ownership:
Owners have basic rights known as the “bundle of rights”. These include:
Yet, these rights have restrictions via:
A lien, for example, could stop an owner from selling until a debt is paid.
Co-ownership might also limit an owner’s right to sell without the other owners’ approval.
Knowing these rights and limits is key when thinking of selling a property.
They significantly influence how and when a sale can happen.
Let’s look at the different scenarios in which you can or can’t sell a house if your name is on the deed.
These include:
If you own a property alone, you alone can sell it.
This means your name is the only one on the deed.
Nobody else can sell your property.
It’s your right to sell, lease, or mortgage the property.
Still, there are rules to follow when selling.
You must provide a clear title.
This means showing you own the property free of liens.
You must tell potential buyers about any problems with the property.
Each state has its own rules about selling houses.
You might have to pay taxes on the sale or fill out certain documents.
If you don’t follow these rules, there might be penalties.
The sale could also be canceled.
Shared ownership, or co-ownership, refers to multiple individuals owning a property.
There are two main types of shared ownership:
With joint tenancy, every owner has an equal stake in the property.
There’s typically a right of survivorship.
This means if an owner dies, their portion goes to the remaining owners.
In this case, an owner can sell their stake.
But, they can’t sell the whole property without the other owners agreeing.
Tenancy in common is different.
Each owner has a separate share in the property.
These shares can be equal or different.
An owner can sell their share without needing the other owners’ permission.
Unlike joint tenancy, there’s no right of survivorship.
If an owner dies, their share goes to their heirs or as per their will, not to the other owners.
In both situations, an owner can sell their own share.
They can’t sell the entire property unless all owners agree.
If the owners can’t agree on a sale, they may end up in court.
The court can order a partition lawsuit.
This forces the sale of the property.
Then, the money from the sale is divided between the owners.
A Deed of Trust involves three parties:
Buying a property with a Deed of Trust means that the trustee holds the legal title to the property.
As the borrower, you have the equitable title.
This means you can use and live in the property.
Selling a house under a Deed of Trust is possible.
But there are some unique factors to keep in mind.
You, as the borrower, can sell the property even if the loan is not fully paid.
But, the property is technically in the lender’s control via the trustee until the loan is paid in full.
To transfer a clear title to a buyer, you typically need to pay off the remaining loan balance, often with the sale’s proceeds.
Once the loan is paid, the trustee frees the property from the Deed of Trust.
This gives you, as the seller, the full legal title back.
Then, you can transfer a clear title to the buyer.
If the sale price is lower than the loan balance, a short sale might be needed.
This is where the lender agrees to accept less than the full amount owed on the property.
In short, a Deed of Trust adds some steps to the selling process, but it doesn’t stop you from selling.
A Power of Attorney, or POA, is a legal document.
It allows one person, the agent, to act for another person, the principal.
The level of authority the agent has can change a lot, based on what the POA says.
If the POA gives the agent the right to sell the principal’s house, then the agent can do so.
This can be helpful if the principal can’t manage their own affairs due to health issues or being away.
To let an agent sell a property, the POA needs to give them the power to handle real estate transactions.
This means the power of attorney can:
The POA can also set limits or rules about the agent’s power.
It’s crucial to remember that the agent must always act in the principal’s best interest.
This responsibility is known as a fiduciary duty.
It means the agent must make choices that help the principal, like getting a fair price for the property.
But without a POA, they can’t sell a property they don’t legally own.
Here are other questions our clients ask us related to someone selling a house when their name is on the deed.
When your name is on the deed but not the mortgage, you are the legal owner of the property.
But, you aren’t responsible for the mortgage payments.
The debt falls on the person named on the mortgage.
If the person on the mortgage doesn’t make payments, the lender can start foreclosure.
This happens because the mortgage holder used the property as loan collateral.
Even if your name isn’t on the mortgage, you could lose the property in foreclosure.
There can be benefits to having your name on the deed but not the mortgage.
If the property’s value increases, you have a right to a portion of the equity as a legal owner.
When it comes to selling the property, consent is usually needed from both the person on the deed and the person on the mortgage.
This is because the money from the sale must first go toward paying off the mortgage.
If a property is jointly owned, usually, both owners need to sign to sell the house.
This is because each owner has legal rights to the property.
When selling, both owners have to agree.
They must sign the sale documents, including the deed transfer.
The deed transfer legally shifts ownership from the current owners to the buyer.
If only one owner signs without the consent of the other, the sale might not be valid.
The specific rules can change depending on:
When two names are on a house title, selling the house usually requires both parties’ agreement.
This is because each person has ownership rights to a portion of the property.
So, without the other person’s approval, one individual cannot sell the house.
This applies to most situations involving joint ownership, such as:
If the co-owners disagree on selling, one can force a sale.
They do this through a legal procedure called partition.
But remember, this process involves the court.
It can be expensive and take a lot of time.
Sometimes, one person can sell the house without the other’s consent.
This is possible when they have legal permission to act on behalf of the other.
This permission is known as power of attorney.
However, whether selling the property is allowed depends on the exact terms of the power of attorney.
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