Name Order on the Deed: Do You Care?

You might wonder if the order of people’s names on a deed gives the first-named co-owner an advantage over the second-named one.

Some first-named deed holders may think, for instance, that they have a greater right to the home.

Sometimes, co-owners do hold a property in unequal shares — but that is due to the way they vested the deed — not because of the order their names are written on the deed.

So, name order on a real estate deed has no legal meaning or impact at all. But does it ever matter? Some say it does, and we’ll hear from one such person in this article. Let’s dive in.     

Rights? Duties? No Difference at All.

Name order has zero bearing on the deed holders’ ownership rights or duties. So, if you are a co-owner who’s named second on a deed, rest assured you have not given up any advantages simply because your name appears second.

Nor does your name order have any effect on how real estate assets get distributed between divorcing co-owners. Or to heirs.

Nor does the name order have any effects on the chain of title. Nor does it make either owner less or more responsible for the taxes or any other financial commitments.

If a new co-owner is receiving a property interest, the earlier owner might appear first on the new deed for that reason. This could be done simply for ease of reference. Again, it says nothing about the parties’ rights or responsibilities.

Turnabout Is Fair Play.

Some lenders, real estate lawyers, and title firms print a man’s name before a woman’s (“husband and wife”) by default. But some offices have dropped the old habits — preferring to arrange deed holders’ names alphabetically, or reversing the usual name order.

Some might use a couple’s previous deeds, if there are any, and repeat the name order these co-owners used in past co-ownerships. And many firms put the person who was their first contact first on all the paperwork.

Perhaps the best default of all? Let’s just ask future deed holders how they would like their names to appear.

Much Ado About David?

Back in 1987, a Californian named Molly Selvin wrote an opinion piece for the L.A. Times, titled “Which Name Goes First — Hers or His?” (We caught that spoiler in the title!)

The facts went like this. Selvin refinanced her solely owned deed and brought on a new co-owner, David. Selvin wrote her name on the application as borrower, and David as co-borrower.

That makes sense, right? If a sole owner brings a second owner onto the title, well… Listing that new owner second seems natural.

Later on, Selvin received mail from the lender and escrow firm. The mail would come addressed either to David alone, or with David’s name appearing first.  

“And the more often I request my name first and discover it has been placed second,” wrote Molly Selvin, “the more I — perhaps petulantly — want it first.”

Selvin chafed at “those computers or clerks who automatically insist on putting me in second place”:

We seem to still assume that when a couple buys a house or a car, his preferences and his money dominate the decision making. We still assume, literally, that the man comes first.

Well, if you’re reading this, Molly Selvin, thanks for exploring this topic in such a relatable way.

About Your Mortgage Agreement: Talk to the Lender in Advance.

Financing your home purchase by putting an additional person’s name on your mortgage application? Your co-borrower might boost your chances of getting an approval for the mortgage. But these days, many lenders will only agree to this if the co-borrower is willing to take an ownership stake in the home you choose to buy.

In short, a co-borrower with strong credit can enable you to buy a home you couldn’t buy alone. If you go this route, draw up a separate agreement saying who will live in the home, and who will make mortgage payments — and how much for each person. Perhaps you mutually agree that your co-borrower will pay zero. Your plan might be to refinance and get the property in your own name in, say, one year. That would be stated in your separate agreement. Have a lawyer draw up the agreement that works for both of you.   

Life changes. Here’s how to remove a co-borrower from your mortgage.

Now, to the point. If you apply for a mortgage with a co-borrower — often a spouse, partner, or friend — you might assume the first to be named on loan documents is on the bigger hook for repayment. So, is the first-named buyer the one with the stronger credit? Or is the first-named buyer the one who will occupy the home?

Not necessarily either.

The lender is not interested in which name comes first on loan documents. The lender’s interest involves understanding the co-applicants’ credit profiles, earnings, savings, and debts.

That said, some lenders show one person (usually the one who will live in the home, if just one of the two will live there) as primary borrower on the documents. Or, if a couple is buying a home to live in together, the lender might consider the person with the higher income as primary borrower.  

Your mortgage agreement gets recorded in the public records. It may state your sex and marital status after your name. That’s not there because of a title company’s call — unless the deed is moving between family members and the title agent thinks the language could show that transfer taxes are or aren’t required. But the lender creates the mortgage agreement.

So, will you have a co-borrower on your mortgage? Your mortgage will probably be issued to match the way you typed co-borrowers’ names on your loan application. Want to be sure? Tell your mortgage consultant upfront how you’d like your names to appear on your legal documents.

Note: A co-borrower and a co-signer aren’t the same thing. With a co-borrower, both of you will typically be named on the deed and responsible for the loan repayment. If you merely get a co-signer, only you will be named on the deed, while the mortgage company can hit either of you up for the loan repayment.

Let’s Just Remember the Basics.

A deed transfers real estate. That’s all it has to do. A valid deed identifies the parties so that a court could identify them. There’s no rule about name order. There’s no requirement to discuss gender. So it’s fine to use inclusive terms on real estate papers. Are gendered terms necessary? No. Using generic terms like spouses, applicants, buyer and so forth works just fine.

So there we have it, friends. As always, we recommend consulting an experienced real estate lawyer in your state to guide you in creating or reviewing your real estate documents.