I purchased a home with my fiancé recently. His family was paying a big chunk of deposit as a gift to my fiancé and we

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Customer: hello, I purchased a home with my fiancé recently. His family was paying a big chunk of deposit as a gift to my fiancé and we were to have this document put in place. his parents
JA: What state are you in? It matters because laws vary by location.
Customer: His parents now say they cannot give that deposit money due to tax reasons so they will remove us from title and put an agreement in place that we are still “owners” and will get the equity, mortgage payments, etc all as if we owned the property My question is if I am no longer on title, do I still have rights to a home if a legal document is drawn up? I am in Ontario Canada
JA: What steps have you taken so far?
Customer: Our mortgage was approved in our name and full agreement of purchase and sale signed. We only needed the gift letter from his parents for the rest of deposit for our closing Nov 25. His parents just told us a couple of days ago the only way they can do it now is by removing us from the agreement and WE pay them. They claim this other agreement they will put in writing will give us full rights to our home that this is just a technicality
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: No that is all, I just want to know if I have any rights to a home, like his parents are claiming, if we are no longer apart of the purchase
Answered by Joey in 4 mins 1 year ago
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Joey
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Joey, Expert

Hi and thank you for using JustAnswer.  My name is ***** ***** I will be assisting you with your question.

Just a general disclaimer that this conversation is for informational purposes only. I am licensed Canadian lawyer; however, you would need to retain a lawyer to take any legal action and/or preserve any of your legal rights. I may be away from my desk from time to time, but rest assured I will always return back as soon as possible.

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Joey, Expert

Good morning – sorry to hear about the situation. To clarify, will you be on title to the home or not?

Customer
We were supposed to be but not anymore
Customer
The parents say they can't get the deposit without paying too much taxes in capital gains so this way, by removing us from title and the purchase, they can purchase home outright and not have any capital gains tax
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Joey, Expert

If you are not on title, you would not have any ownership of the property. It would be in your best interests to be on title if you purchase any property to avoid a lengthy court battle costing tens of thousands of dollars to prove some beneficial ownership at some point in the future.

Customer
They are putting our home in their company name to save on taxes, claim that it will be as if we own it and have all rights on it but that will be stipulated in a separate contract
Customer
Sorry what is "beneficial ownership"
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Joey, Expert

Sounds risky if you ask me. They could sell it without your knowledge, move the money overseas and you’ll be left with nothing.

You would need to show that they held title, but you were to receive the benefits of ownership. It’s complicated and you could lose.

Customer
Ok so I would need to show that I held title at some point you mean?
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Joey, Expert

No. Title would be in someone else’s name, and you would need to prove that you were to receive the benefits of ownership including the equity held. It’s complicated and you could lose.

It is strongly recommended that you are on title to protect your financial interests, or you can gamble that they will follow through on their promise. That is your personal decision.

Customer
Ok, that explains what I already assumed would be correct.
Customer
Why can't they put us on title and we are all on title?
Customer
Why are they claiming they can't do that?
Customer
It's because they want to protect themselves correct?
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Joey, Expert

Probably to protect their money and have ultimate control over the property.

It’s best to not own property with someone other than your partner (unless it’s an investment property). Too much risk involved.

Customer
Ok, thank you so much for your help.
I don't know what to do now. It puts my in an awkward position as these are my fiancé's parents and my mew family.
I am disappointed and not sure how to go against what they are change with our new home.
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Joey, Expert

I can imagine so. If they want to lend you money, they can register a mortgage on the property. This way you are the only one on title and their money is protected. Win-win for both parties.

Customer
Ok, that is something we can discuss.
Customer
Thank you very much for your help
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Joey, Expert

Does that help answer your question today or did you have any follow up questions?

Customer
Sorry one more question, if they are purchasing the property outright, how do they register a mortgage on it? Between us and them that's contractual?
Customer
What they claim to be doing is purchasing the property under their company outright
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Joey, Expert

You need to purchase it in your name. Once it is in your name, they could put a mortgage on it.

Customer
Ok, thank you
Customer
this was very helpful
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Joey, Expert

My pleasure. Thank you for using JustAnswer. I wish you the best of luck.  If you would like to request me in the future, simply type my name in the subject line and write “This is only for Joey” I will address your question right away. If you have any follow up questions about this matter, please do not hesitate to reach out to me.

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