Legal Question in Real Estate Law in New Jersey

Re: Can a Sub division be done after a first mortgage is in place?

The mortgage would be a lien on both properties. However, there may be a clause in the mortgage that prevents the subdivision without lender authorization. You should not try to accomplish this without the assistance of an attorney. Keep in mind that this advice is given based on the little bit of information that you have provided in your question. My advice may change based on other information. Further, no one can rely on advice from an attorney who has not been retained. You cannot rely on this advice because we have not personally met and you have not retained me as an attorney. If you have not already done so, you should immediately meet with an attorney for a full consultation before you take any further steps. You may feel free to call me [856-546-8010] to discuss this matter in more detail. If you do so, mention Law Guru and your first one hour of time will be free. Good luck! Rob Gleaner

Re: Can a Sub division be done after a first mortgage is in place?

First, you have to verify the mortgage allows you to subdivide the property. This may require lender approval. Presuming you can do this without violating your mortgage, you will have to apply to the local zoning board for subdivision approval. This will require an application with supporting documents, hearings and, possibly an expert witness, depending upon your local board's requirements. You will then probably have to work out an agreement with your lender to allow the subdivided portion to be released when sold, if you are not going to pay the entire mortgage in full. More information is needed to supply a better, more specific response.