If you inherit a property with an existing mortgage through the right of survivorship — whether as a joint owner, spouse or registered domestic partner — you not only assume full ownership of the property, but you assume responsibility for the mortgage as well. This means you must continue to make the same mortgage payments the deceased co-owner had been making until the mortgage is paid off or the property (or your share of it) is sold.
That said, reviewing mortgage terms with a knowledgeable real estate attorney is crucial, as some mortgages require full repayment upon transfer. If continuing mortgage payments after a co-owner’s death is not financially viable, you may need to explore selling or refinancing the property.
Keep in mind that if you are a joint tenant, spouse or registered domestic partner, your ownership share remains equal regardless of how much you contribute to the mortgage or improvements to the property. If you prefer for your ownership to be proportional to your financial contributions, holding title as tenants in common may be a more suitable option.
