Sunday, April 6, 2014

Is it legal for a loan to be taken out by one party in a property owned in joint tenancy?

Question

Is it legal for a loan to be taken out by one party in a property owned in joint tenancy?



Answer

Yes, but the mortgage only attaches to the share of the property that the borrower owns. Other joint tenant(s) share(s) are unaffected.



Answer

Legal, yes. A good idea for the lender, no.



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