PROPERTY RIGHTS FOR UNMARRIED COUPLE?

drafter

just putting a question out there to see if some one else has been there.

if an unmarried couple where one half has brought a house with a mortgage out on it and the other half intents to put a large amount of money into the mortgage with the intention of one day having the name included in the title deeds.

just say if down the line the relationship breaks up for one of lifes many reasons and the person who has the house in their name says i get out you have no right to be living here now.

my question is has the other person any legal claim on that property when money was given with the intention of owning half of the property at some stage in the future?

just to see has anyone encountered this situation before?

dats_right

Yes, I have and it is a nightmare. The non-owning party does not have any automatic rights in respect of the property and would in the absence of an agreement be forced to bring legal proceedings, such proceedings would be very expensive and highly risky. Before investing any money into the property in the circumstances you describe you should consult with a solicitor to advise you as to best way to proceed.

Victor

Both parties always need to get separate, independent legal advice when entering into such a situation.

dermot_sheehan

The party providing the money would have an equitable interest in the property regardless of whose names are on the title deeds.

They would have to bring circuit court proceedings to prove that interest if there was any dispute.

johnfás

Yes, an equitable interest may arise in favour of the party who does not have a strict legal interest in the property. This is known as a resulting trust. It will arise in the situation where direct contributions are made by the non title holding party, which is what you refer to above. In that instance, the resulting trust will be to the value of the direct contributions made by that party to the mortgage.

It may also arise (there is a presumption that it will arise) where there are indirect contributions made by the non title holding partner thereby relieving the title holding partner of his/her financial burdens and enabling them to service the mortgage. For example, if the cohabitee were to pay for all the grocery shopping and all discretionary spending incurred by the two parties.

However, as stated above, this is not an automatic right and is one which must be proved in court. Where direct contributions have been made to the mortgage (for example there may be a standing order between the parties bank accounts) this can be easier to prove. Where indirect contributions arise it can be far trickier as records may be sparse. I have been involved in a couple of situations where the matter of indirect contributions arose. In both instances the matter settled between the parties.

That being said, the posts of the above posters are perfectly correct. There is no automatic right to what is described above. If one were to consider entering into the property holding relationship which you outline, they would be best advised to seek legal advice in order that an agreement, which can be enforced, is concluded between the parties prior to entering into such a relationship.