Minnesota Real Estate Legal Questions

The first thing you need to do is obtain a copy of the deed from the County register. It is public knowledge and obtainable. The way title is held wil control the ownership. If it is just the two names, then both will own it equally no matter who has been making the payments. The person making the payments should be able to recover the expenses when the porperty is sold unless the other co-owner can prove that the payments were a gift. The property can only be conveyed with the consent and signitures of both individuals. The copy of the deed will be most helpful.       ... Read More

It sounds simple enough to have them just convey their interests in the property to you.  But there is at least one roadblock to that.  Without even looking at your parents' mortgage, I think it is safe to say there is a "due on sale" clause.  That is simply a clause that says if they convey any interest at all in their property without prior written consent of the lender, it is a default and thereby exposes all parties to a possible foreclosure.  So, unless the mortgage holder is a local institution that you can speak to and perhaps get written permission, it is risky to have them deed the property to you.  If you have the financial strength to simply pay the mortgage off if there is a necessity to do so, you might consider going ahead with the transaction and -- if the lender learns of the transaction and objects -- you can dispose of the issue by paying the mortgage off.  (If your parents have good title, I recommend they make any conveyance by a standard warranty deed, but have the deed recite any encumbrances such a mortgage, easements, etc.) Is there an alternative?  The best alternative is to ask them to prepare a will and, in the will, leave the property to you.  Your payments on the mortgage can be deemed a loan to them.  Should anything happen to block the transition, unless their estate becomes insolvent, you could file a claim against the estate and recover your loan.   Another consideration is the possibility that your parents will one day have to enter a nursing home.  If that is the case, unless they have disposed of their home more than 5 years prior to entering the nursing home, they will have to "spend down" their assets to the point that they have very little in order to qualify for Medicaid assistance.  In other words, they will have to use up their own resources for their care before they will qualify for Medicaid.  (These comments assume the basic provisions of Medicaid will not change materially any time in the near future.)  ... Read More