Legal Question in Real Estate Law in New Jersey

Re: Two homeowners--one leaves the property

Several options, since you did not cover this from the inception:

1. Sell the property and split the proceeds.

2. Have the property appraised and let her refinance to buy you out, with some terms offered since she may not have the cash to do it. This might include a second mortgage to cover your equity.

3. Both move out and rent to a 3rd party, splitting any rent received over the costs of carrying the property.

4. Let her pay you rent for her use of the property, with some agreement as to what equity you have if the property is ever sold, rented, etc. This might require some negotiations as to what is a fair rental and how the mortgage is to be paid. You may need a mediator to assist you.

5. Final resort is a suit for partition, whereby you, as co-owner, sue to have her buy you out or a court order for sale.

I suggest you consult an attorney to assist you in making a decision on the alternatives.

Re: Two homeowners--one leaves the property

Your two basic options is for both of you to come to an agreement for one to buy the other out, or you can sell the property and divide the proceeds. There are many details with either option; accordingly, you need to seek legal help in order to be sure all aspects are covered. You must keep in mind, however, that this advice is based purely on the little bit of information that you have given to me. There certainly could be factors that would change my opinion. Further, no one can rely on advice from an attorney who has not been retained. If you have not retained an attorney, before you take any action, you should contact an attorney (either me or someone else) to discuss your matter in more detail. Only then will you be able to rely on the advice. I will be happy to assist you. However, you need to call me at 856-546-8010. If you mention Law Guru, there will be no charge for your first consultation. Good luck! Rob Gleaner

Re: Two homeowners--one leaves the property

If her credit is still good, she could refinance the property in order to buy you out. If you had a co-owners' agreement when you bought the property together, you should review the provisions for valuing the property and buying each other out. If you didn't have such an agreement, you will have to negotiate buy-out terms now.

You (both of you) may want to get a current appraisal, to determine how the value has changed since your purchase, and then work out a formula to take into consideration your respective contributions to the purchase price, and to the mortgage payments and other maintenance and repair expenses since you bought the property.

Bear in mind that you cannot simply transfer your interest to her, nor can she transfer her interest to you, without getting written consent of the mortgage lender and also getting the lender to release the person who is giving up an interest in the property. Without the lender's consent and release, you risk (a) being in default under the mortgage and the lender starting foreclosure proceedings; and (b) remaining liable on the note and mortgage obligations, even though you've given up your interest in the property. This will affect your credit.

You should have legal counsel to be sure that your interests will be adequately protected.

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

Re: Two homeowners--one leaves the property

I suggest that your girlfriend should either refinance or you need to sale the property.

you can call me for as free phone consultation.

savy grant

201-646-9600