Real Estate Law
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HelloThis is Samuel. If you are on the mortgage, then you will need to pay the mortgage should they default. I suggest you can consider being placed on the title and once the mortgage is paid then you can quit claim the Deed over to them. But if you are on the mortgage then you are also responsible for it.I also suggest that you consider having an agreement drafted noting how much you are lending them, that way it cannot be construed as a "gift" and what your terms are for repayment of that loan.
And a local attorney can assist with that and make sure it includes provisions that regardless if they default on the mortgage or not, your loan will be repaid.
As long as they are living there as their primary residence, they can still apply for the exemption. You do not need to have it as your primary residence.
Here is a link so you can see what that application looks like and information required.
Please let me know here if you have other questions or need clarification. Otherwise a Positive rating ensures I get credit for my time.