Legal Question in Real Estate Law in New Jersey

Re: One name on mortgage - two on title

These questions should have been addressed when the property was purchased. The father's interest will pass as stated in his Will, or if none, than according to the intestate succession laws of the state where he resides. He may be removed from the Deed anytime he consents to same, with or with out repayment of the downpayment. You both should see an attorney to do this. If you wish to schedule an appt. with me you may call me at 973-731-5110

Re: One name on mortgage - two on title

I would have to know some more facts to really be of help, but let me offer a few things. If the deed is in the name of both you and your boyfriend's father, then the mortgage is also in both your names. You may be on the Note solely, but I bet the father is on the mortgage, as well. If the deed states that your are "joint tenants, with rights of survivorship", then you would get the property if the father died. If the tenancy is "in common", then half would go to his estate. The good news is that he can sign off his interest, but it sounds like you need an attorney to review and make this happen. It would not be an expensive prospect, but it may save you aggravation later on. If you are in South Jersey, give me a call, if you'd like, at 800-443-5084. If you are in North Jersey, I could refer you to somebody.

Re: One name on mortgage - two on title

If the mortgage and the note it secures are in your name, only your credit will be affected if the property is not maintained or if payments and other mortgage obligations are not met.

Whenever two people buy a property together, I strongly encourage them to have a co-owners' agreement that spells out their rights and obligations, such as: (1) who pays what, (2) what happens if one does not pay; (3) what happens if one party wants out of the transaction; (4) what rights, if any, will the parties have to rent out the place if one wants out; (5) what if one wants to sell and the other does not, etc.

How you and your boyfriend's father took title will govern what happens when he dies. If you took title as joint tenants with right of survivorship, upon the death of either of you, the other will automatically own the entire property alone. If the deed does not have language to that effect, you are probably "tenants in common". In that case, each of you may dispose of your interest in your Will. This means that you could end up owning the property with a stranger, or if your co-owner does not have a will, your new co-owners would be all of his legal heirs.

I have always counseled clients who purchased property together with a partner but did not have such agreements. It is a long, sometimes impossible, process to work out later when one person wants to leave.

It is very important to protect your rights and your investment in the situation you describe.

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

Re: One name on mortgage - two on title

Usual problem of not using a knowledgeable attorney. You do not say how the title reads: does it say nothing (just the names), state you are tenants in common (usual between people like you and your father-in-law) or joint tenants with right of survivorship. The registration controls what will happen. If either of the first examples (no description of how owned or tenants in common) he is free to give the property to whomever he desires, by his Will. If the third (joint tenants WROS), you inherit by operation of law. If you are solely on the mortgage, your FIL can give his share to anyone and they would have no liability to pay the mortgage. I suggest having a new Deed drawn making sure the registration goes to you upon his death, since you have the mortgage responsibility. You also do not describe how he gave the down payment - a gift to his son, to both of you, or a loan? This can also complicate the matter if he expects repayment. You do not describe the amounts each of you contributed (how much was the house, the down payment and mortgage?) nor what was the understanding of the parties as to the various responsibilities (down payment, mortgage payments, etc.). There are many problems that may require an attorney to correct, and I suggest all of you meet with an attorney to get the problem corrected and the paperwork in place.