Legal Question in Real Estate Law in New Jersey

Re: Quit Claim Deed

You are raising many issues with your question.

1. Whenever two people buy a property together, they should have a co-owners' agreement that spells out how each may buy out the other's interest at some point, and how they will share expenses of the property.

2. If you are about to take title and are concerned about a judgment against one of you, perhaps only the other one should take title, possibly in trust for the other, but have an agreement between you that makes clear your intention to own the property together.

3. If you take title together and then later change it to just one of you because of a judgment, that may be considered a fraudulent conveyance, one that is intended to defraud creditors. The property might still be reached by the judgment if the holder of the judgment can show fraudulent conveyance.

Also, most mortgage documents have prohibitions against any transfer of title without the lender's consent. A violation of this prohibition could result in the lender declaring a default and calling (demanding that you pay) the entire balance, and it could lead to a foreclosure in which you could lose the property.

You should consult with an attorney before you take title so that you may protect yourselves and not create more problems in the future.