How Can I Protect Property I Purchased With My Brother From Claims By His Spouse?
Full Question:
Answer:
You can have him sign a quit claim deed to you, which would remove his interest from the property (of course, the bank may object if they find out because of the "due on sale" clause). Most lenders require that the mortgage or deed of trust contain a due on sale clause. This is an acceleration clause in a loan, calling for payment of the entire principal balance in full, triggered by the transfer or sale of a property. Such a clause permits a secured mortgage lender (federal, state or private) to call the entire unpaid loan balance due and payable immediately if the property securing the loan is sold, transferred, traded, gifted or otherwise disposed of without the lender’s prior written consent.
Generally, property owned before marriage is considred separate, rather than marital property. However, the brother may wish to have the fiance sign a prenuptial agreement or disclaimer deed.
