Legal Question in Real Estate Law in New Jersey

Re: Should I add my name to a deed?

You did not mention whether the estate is that of a deceased family member or if your family wants to purchase the house from an estate. In either case, you will want to be sure that estate and inheritance taxes have been paid, as well as debts of the deceased/estate, because the taxes would be liens against the property, and creditors of the deceased/estate could also make a claim. You also want to be sure that there are no other liens. The best way to accomplish this, especially if it is a purchase from an estate, is to have title insurance.

Having your name on the deed with your parents means that that three of you will be co-owners of the property. That means that judgments against any of you will attach to the property and may cause a sale [foreclosure] of the property to enforce the judgment.

Having your name on the Note and Mortgage means that you are lending your credit to that of your parents for the purposes of obtaining a mortgage loan. It also means that each of you is FULLY liable on the mortgage loan, not that each of you owes only 1/3 of the loan amount.

I always recommend to my clients when they are taking title other than as husband and wife, in the case of married couples, that any two or more co-owners should have a co-owners' agreement, providing for how the responsibilities are shared, and, if one wants to leave, how an interest may be bought out by the remaining owners.

You should consult a local attorney to advise and assist you in this.

NJ Office: 900 Haddon Avenue, Suite 412, Collingswood NJ 08108; Tel.: 856-858-7775.

Re: Should I add my name to a deed?

If you are added to the Deed, the real issue is if you become part of the home equity loan. If you become part of the mortgage, you could be held responsible for the entire payment in the event the other owners do not make the payments. Best is to have them do the refinance and add your name after the refinance is completed. This would place you in title with no responsibility for the mortgage. If you need more information, write again to me directly.