Legal Question in Real Estate Law in New Jersey

Re: Tenant in common

In years of writing for LawGuru, I have learned that the answer to any business law question that contains any of the words "boyfriend", "girfriend", or "co-sign" is usually bad news for the one who asks. Yours may be an exception because at least you are asking before you get into trouble.

You need always to separate the ownership of real property with the obligation to pay for it. If your question was only about ownership, then "tenants in common" would tell me that each of you could sell your undivided half interest independently. So, you could sell it or give it to anyone if the deed and tax issues are handled. However, the existence of a loan tells me that there is a mortgage on the property. The conditions of that mortgage no doubt are that, if any owner does anything to impair the lender's secured interest in the realty (such as change the title), the loan is due immediately and the lender can foreclose. If one tenant-in-common deeds the property to the other, both still remain liable on the mortgage. If the other does not pay, the lender will foreclose and will come after both to satisfy any deficiency. Considering that it take about a year to complete a foreclosure in NJ during which chargeable costs grow and considering that property values have fallen, that's not a situtation that you should invite.

If you and your bf want to make a new arrangement, I suggest that you meet with a lawyer who will take the time to read the documents and understand what you need. Then, it may be possible to help.

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

Re: Tenant in common

You need permission of the lender to be released from liability for the loan. The way out is either by negotiating a buy-out, agreeing to sell, or a court action to force the sale of the property.