Legal Question in Real Estate Law in New Jersey

Re: Partner's name on deed - not mortgage

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.

I have a number of such clients, and generally they want to take title as joint tenants with right of survivorship. I counsel against this, because if 50 percent of all marriages fail, at least the same number of other relationships also fail. I have also 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.

Also, if either of you wants the other partner to inherit the property on death, you should each also prepare separate wills.

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

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