Legal Question in Real Estate Law in New Jersey

Re: Names on mortgage vs title.

Fire your advisor.

First, it is unlikely that a lender would approve such an arrangement since it has the effect of diluting the security and making foreclosure very difficult. So, you won't get money for that arrangement. Secondly, the concerns of the one partner are very justified. Read some of the other Q&As in this category to find out how often one partner is left with the debt.

The arrangement that your "advisor" suggested is a gift of one half the house. I have never known it to be a good idea.

See also: http://info.corbettlaw.net/lawguru.htm

Re: Names on mortgage vs title.

The advisor probably meant that only the person whose credit is being relied on for the mortgage loan should sign the note, but that both of you may own the house [both of you would be on the title to the house], and both of you would sign the mortgage. Without the signatures of both owners, the lender would not have a good mortgage.

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. It should also show what each person's contribution toward the purchase is.

You should have a local experienced real estate lawyer assist you with both the purchase and the co-owners' agreement.

Re: Names on mortgage vs title.

The short answer is that the unmarried couple need a written agreement that says what happens if they should ever break up. It will cost a couple of hundred dollars.

That is far cheaper than the grief and anger generated by a nasty breakup and fight over ownership of the house. And that typically costs thousands of dollars of attorneys' fees for each person.

Get a lawyer for YOU (the lawyer will represent you, and your partner should have the opportunity to go see his/her own lawyer) and get an agreement in place immediately.

If you would like me to assist, please call my office. I am in Hackensack. A half hour consultation will be $75.00. You can then decide how you would like to proceed.

My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.

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