Legal Question in Real Estate Law in New Jersey

Re: Buying out a joint tenancy deed

Let's presume your mother loaned you the money. All you need to do is repay the loan, but you will need a new Deed taking her name off the original. The only costs will be the recording fees. I suggest an attorney, like myself, assist you in the Deed, as certain forms needs to be filed with it (an Affidavit of Consideration). Also, if your mother is on the mortgage, merely removing her from the Deed does not eliminate her possible liability under the mortgage if you were to default. How are you getting the money to buy her out? If you are refinancing, she would be off the new mortgage, but if you are just taking an additional mortgage (like a home equity loan) she will still be on and have potential liability under the original mortgage. If she did not lend you the money, and was on the Deed as a true equity owner, she may not have any tax liability on the buyout, but she would probably be considered as having made a gift of her share of the appreciation in value. I suggest you call me at 973-377-3313 so I can discuss this in more detail with you.