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OWNERSHIP OF HOME ON NON-OCCUPANT CO-BORROWERS
If I get a co-borrow to sign on the loan but they sign a non owner occupied will they still have access and rights to the home. If they chose to move in if I’m the primary resident
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1 Reply
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First and foremost, the topic of non-owner occupied properties, including co-borrowers and home ownership, is vast.
Here are a few important points to understand their relationship:
Rights and Ownership
Co-Borrowers:
Co-borrowers are also co-owners, and they are liable. Complete particulars, including filings and agreements signed by the concerned parties, determine the type of ownership.
Title of Ownership:
In cases where the title does not mention the co-borrower as the real estate property owner, the co-borrower cannot be termed as any of the legal owners of that property, irrespective of the borrower’s loan status.
Non-owner Occupant
When they sign documents as non-owner occupants, they agree that the property will not be treated as a primary residence, which affects their right to reside in the house.
Moving in
Rights of Relocation:
In cases where a co-borrower has not been designated as any of the owners, proprietors, or co-proprietors, generally, the co-borrower does not hold the right to vacate the occupancy without an agreement—however, theorists say this holds when the co-borrower is not part of the mortgage.
Recommendations
Written Agreement:
It is vital to take a written legal note in which the rights and duties with respect to occupancy and ownership and the intent of all the concerned parties are made clear.
Reach Out To A Lawyer:
Since property law can be complicated, it is generally a good idea to consult with a real estate lawyer to normalize ownership among all parties to a transaction.
Mortgage Lender Policies:
Some lenders may have co-borrowers or occupancy policies specific to that lender. Please make time to address such concerns with your lender.
Final Thoughts
Although a co-borrower helps obtain funds, the extent of that co-borrower’s property ownership depends on how the title is drawn up and the agreement reached. As such, good expectations management and legal bounds are key aspects for each party.
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