Can a cosigner claim ownership?

Asked by: Millie Keeling DVM  |  Last update: May 23, 2025
Score: 4.9/5 (50 votes)

No. Cosigning a loan doesn't give you any title, ownership, or other rights to the property the loan is paying for. Your only role is to repay the loan if the main borrower falls behind on the payments or defaults.

Can a cosigner claim ownership of a car?

Unlike co-borrowers, who are on the title or have some claim to the property or funds, co-signers have no title or ownership of the property the funds are used for. For example, a co-signer for a vehicle has no legal right to the financed vehicle.

Can a cosigner take possession of a vehicle?

Cosigners can't take possession of the vehicle they cosign for or remove the primary borrower from the loan since their name isn't on the vehicle's title.

Does a cosigner have ownership rights?

Being a cosigner does not give you rights to the property. A cosigner has no title or ownership in the property secured for the loan. Additionally, a cosigner has no legal right to occupy a home as a primary or secondary residence, unlike the primary signer/borrower.

Does my co-signer own my car?

Cosigner: This is a person with solid credit and income who can help boost your chances of approval. Although liable for payments if you default, the cosigner doesn't share vehicle ownership and won't be on the car title.

How To Get Removed As A Co-Signer On An Auto Or Mortgage Loan

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How much rights does a cosigner have on a car?

Co-signing means you are responsible for covering payments if the main borrower cannot, but you do not have any legal rights to the car. Co-owning means both parties have equal ownership and financial responsibility for the car.

Does a co-signer's name go on the title?

What is a Co-Signer? A co-signer applies for the home loan right along with you. However, they are not on the title of the home. The co-signers name is only on the loan, meaning that while they are financially responsible for paying back the mortgage, they do not have ownership of the property.

What authority does a cosigner have?

A cosigner on a loan is legally responsible for the debt if the primary borrower defaults. Cosigning a loan will show up on your credit report and can impact your credit score if the primary borrower pays late or defaults. Cosigners may sign for student loans, personal loans, credit cards, and even mortgages.

How do I protect myself as a cosigner?

5 ways to protect yourself as a co-signer
  1. Serve as a co-signer only for close friends or relatives. One of loan co-signing's biggest risks is potential damage to your credit score. ...
  2. Keep copies of all the loan documents. ...
  3. Create a contract. ...
  4. Track monthly payments. ...
  5. Ensure you can afford payments.

Can a co-owner of a car take it?

He can not take it away from you. But, if you are both in the title & registration card, you are both co-owners too. If you are in the title alone, it is your car.

Can you report a car stolen if the cosigner has it?

In general, if someone takes or controls your property without your permission, it could potentially be considered theft. Here if you contacted the police department they would investigate whether it is theft and charge him with a crime if they believe one has occurred.

Who has legal rights to a vehicle?

If you are both owners of the vehicle, you'd both have legal rights to the vehicle. In other words, if you wanted to get in the car and drive away with it, you'd have the right to do so, since (presumably) you're the owner of the car as well (this does not apply if you're only a co-signer on a loan).

Can I sell a car that I cosigned for?

If you want to sell the car by yourself, you may not be able to – you're likely to need your co-borrower to complete the sale. Both of your names are on the title, which can make selling the vehicle complicated. You're also likely to need your co-borrower's permission to transfer ownership legitimately.

Can you repossess a car you cosigned?

Keep in mind that a cosigner can't take possession of a car they've cosigned for. A cosigner doesn't have any legal rights to the vehicle, so they can't take a car from its rightful owner, the primary borrower.

Can I sue someone I cosigned a car for?

Can I sue the person I co-signed for if they don't pay? Yes, you can sue the person you co-signed for if they don't make the payments they promised to make. You may be able to get a judgment against them in court, but it could be hard to collect that money since they didn't pay the debt in the first place.

Can a co-borrower take possession of the car?

– While the cosigner is contractually committed to the loan, they have no rights to the vehicle. Even if they find themselves having to take over payments, they cannot take possession of the car.

What rights does a co-signer have on a car?

While you don't necessarily have the same rights to the vehicle as the primary borrower, you – as the co-signer – are equally responsible for ensuring the loan is paid back. If the primary borrower doesn't make their monthly loan payment, you will be asked to make the payment.

Can cosigner take ownership?

No. Cosigning a loan doesn't give you any title, ownership, or other rights to the property the loan is paying for. Your only role is to repay the loan if the main borrower falls behind on the payments or defaults.

What legal action can a cosigner take?

But most states allow cosigners to take primary borrowers to court in the following situations: Cross claims: If you default on or fail to repay the loan, the lender could sue the cosigner for the money owed. The cosigner may then be able to sue you for the money that the lender is trying to recover.

What happens if I cosign for a car and the other person doesn't pay?

Usually, when you cosign a car loan, you agree to be responsible for the debt if the primary debtor doesn't make payments or otherwise defaults on the loan. If the primary debtor defaults on the loan, then the creditor has the right to repossess the car and sell it.

How can I legally get out of a cosigned loan?

Request release from a co-signed loan

Co-signers can make a written request to the lender to be released from a loan. In certain cases, like some student loans, there may be a provision that allows a co-signer to take their name off a loan.

How do you go from cosigner to owner?

To get a co-signer release you will first need to contact your lender. After contacting them, you can request the release — if the lender offers it. This is just paperwork that removes the co-signer from the loan and places you, the primary borrower, as the sole borrower on the loan.

Does a co-signer have rights to the property?

A cosigner's sole responsibility is ensuring a complete loan repayment. A co-borrower ensures repayment but also helps pay the loan alongside the borrower and possesses property ownership rights. As a cosigner, you don't have property rights.

Can a co-signer take the car away?

The answer is no, the cosigner has no legal right to take possession of the car. As a cosigner, you don't have legal ownership rights to the vehicle. In other words, a cosigner is on the vehicle's note (making them liable for the payments) but not the car title (which indicates ownership).

How do I get my co-signer off my title?

The lender must approve removing a co-borrower from a title. Typically, you must refinance the loan and qualify on your own for the lender to approve removing them from the auto loan and title.