Securing title through a partnership agreement

**ydinai001** · 12-02-2009, 09:04 PM

Hi,

I have entered into the following partnership deal to acquire a real estate condo with a partner:

- I found a nice deal

- My partner is purchasing the real estate under his name, i.e. putting the down payment and obtain a mortgage under his name (using his credit etc.)

- Me and my partner enter into a partnership agreement whereas I'm responsible for some portion of his mortgage, making back to back payments directly to him. I also provide property management services.

- Partnership agreement states that we share 50:50 in this real estate (ownership, profit, losses and any gains etc.)

- At least during the first year after closing, the partnership will not be on title. Only my partner will show up on title as sole title holder however, i will have the right to record a lien against the property to secure my rights under the partnership agreement between us.

My questions are:

1. Is everything here legal?
2. Since i'm not on title, is a partnership agreement stating the relationship as describe above protects my ownership right and holds in court?
3. For tax purposes, based on our partnership agreement only (since i'm not on title and not on mortgage), am I considered owner of a real estate and can utilize all tax benefits as usual, if I were on title and mortgage docs ?

thanks!

**Greg** · 12-03-2009, 06:01 AM

Originally Posted by ydinai001

My questions are:

1. Is everything here legal?
2. Since i'm not on title, is a partnership agreement stating the relationship as describe above protects my ownership right and holds in court?
3. For tax purposes, based on our partnership agreement only (since i'm not on title and not on mortgage), am I considered owner of a real estate and can utilize all tax benefits as usual, if I were on title and mortgage docs ?

thanks!

1. While it may be legal it does not sound very safe. When you finally do change the deed is when it might become illegal. There will be a "due on sale" clause attached to the mortgage and when you change the deed it will trigger this clause. They are not enforcing this clause now but they might at some future time.
2. It depends on where you are and how the paperwork is drawn up. Get a lawyer upfront. It is cheaper than getting one after things go bad. The holder of the deed/tile is the one with the most rights.
3. Again, it will depend on where you are and the paperwork involved.

If this is not done correctly, you could find yourself on the losing end of the deal. Get a lawyer.

**Ortigas houses** · 12-06-2009, 05:39 PM

It all depends on the written agreement,because if you might bring this to the court,the documents are the primary evidence of the said partnership. It is important that you and your partner have a clear conversations and understandings on the partnership,benefits,ownership equity and the responsibilities of the said properties written on the agreement.
Better know all things covered for you in the agreement so you will avoid losing time and money on it at the end of the day.

**bangkokofficespace** · 01-12-2010, 07:21 PM

The two of you should settle the documents on which part is yours and what are his shares. All should undergo due process and legal papers should settle to avoid loss and maintain 50:50 rights at the end of the day.