QUESTION

Is it legal to have a house under someone else¿s name?

Asked on Mar 15th, 2012 on Real Estate - Arizona
More details to this question:
My mom is a real estate agent and bought a house under my name. She did this because she filed for bankruptcy about two years and told me she couldn''t get it under her name. She also told me that this would help me raise my credit. However she does not live in this house, she owns her own home and rents the house out that is under my name. The water bill and everything else that goes with the house is also under my name. My fiance is very specious of this and after giving it much thought I am as well. Is what she is doing legal? Can any of this hurt me? Also as a side note, my last name is different then hers. I did sign off on the paperwork..I did not know better at the time when I did this. (I am a legal Adult) Also she is handling everything..bills and I would presume the taxes..I am not well educated on the real estate laws
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1 ANSWER

Real Estate Law Attorney serving Anniston, AL at Isom Stanko & Senter, LLC
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There is nothing illegal per se in someone placing the title in another's name -- but when that is done, the ownership passes to the other.  In other words, you are the owner of that property.  If you wanted to take advantage of her, you might well be in a position to do so. I don't know enough about her bankruptcy situation to properly address it.  Let me just say that the filing of a petition in bankruptcy results in a court order prohibiting the bankrupt from purchasing anything else on credit without the court's written consent while the bankruptcy case is pending.  You didn't say if the bankruptcy is still pending.  If it is, she may have violated that order and, if discovered, she could be cited for contempt of court and possibly have her bankruptcy petition dismissed.  There is also concern over whether she is trying to conceal her property from creditors.  That is called defrauding creditors.  This can be a valid concern whether she is still in bankruptcy or not.  I doubt you could be held liable for allowing the title to be put in your name, but if a creditor learns of it and files an action to set the deed aside, it could prove embarrassing.  There is risk to her also.  If you were to be sued over a car wreck, or for some other reason, have a judgment or tax lien filed against you, it would encumber title to the property since it is in your name.  If the circumstances worry you, I recommend that you have a serious talk with your mother and tell her you would like to get your name off the deed.  If she can't arrange that (due to bankruptcy for example), then you might consider a sale of the property but the proceeds should be treated as yours.  Before undertaking any specific resolution, confer with a good real estate in your area.  The advice will be worth a modest conference fee. 
Answered on Mar 16th, 2012 at 7:21 PM

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