Questions & Answers
Husband and wife liability for the mortgage payment default of a joint property
My husband and I are in the process of purchasing a property in Dubai. The mortgage will be fully paid by my husband. However, we would like the house to be equally owned by both of us.
For that, as a co-owner, I will need to either provide my personal guarantee (tripartite agreement) to the bank or be a co-applicant in the mortgage.
In such situations, if my husband is incapable to pay the instalments in the future, will I be held liable to pay the mortgage?
Dear questioner,
I understand from your question that you wish to be a co-owner of the house. In this case, you must be a co-applicant.
Only in this way your name will be mentioned on the title deed and the sale and purchase agreement. Managing which account will pay the mortgage is not a problem.
You can both sign with the bank and define it as your husband’s bank account.
On the other hand, your question about the liability of the mortgage payments in case it is on your husband’s name only which you will sign only as guarantor.
If the mortgage is in default for whatever reason, you as a guarantor will be held liable for the payments.
It depends on what you wish to achieve and protect in the future. Let me know if you wish to have a session to understand what you need and what are your concerns and advise accordingly.
Best regards,
Ahmed ELNAGGAR
