Legal Question in Real Estate Law in New Jersey

Re: Selling property to co-owner

You should have a Contract For Sale of Real Estate between you, showing the price, the date when you will settle [transfer ownership], whether or not you will include a contingency permitting her to get a mortgage, and any other issues you have agreed to.

Do you and your co-owner have a mortgage on the property? If so, the buy-out must include paying off the mortgage. You may not simply change legal ownership without dealing with an existing mortgage on the property.

Your co-owner really should also buy title insurance. The title insurance closing agent will conduct the settlement, receive her money, pay off items like an existing mortgage, and make sure that the new deed, the mortgage satisfaction [taking an existing mortgage off the record], and the new mortgage documents, if any, are properly recorded.

You may want to have a lawyer prepare the Contract for you, and she may want to engage her own lawyer to assist her with the purchase.

Re: Selling property to co-owner

I agree with Miriam on most of the details she suggests. Once done (and this should include, for the protection of the Buyer) a simple title search to verify that you have no judgments against you that might have become loiens against your share of the property. Once everything is in place, all you need is a simple Deed transferring your share to her. There are recording costs that are traditionally paid by the Seller (Reality Transfer Fee) and this should be covered as well. If you need assistance, contact me directly.