Legal Question in Real Estate Law in New Jersey

Re: unmarried couple own a house and have split up

It depends on how the Deed reads. If it is in both names without any other written document, she may be entitled to half the equity. She needs to see a lawyer as soon as possible to go over her rights. If she is in North Jersey, call me and make an appointment. Mention, this site and the first half hour is free. Good luck.

Bernie Berkowitz

973-808-2003

Re: unmarried couple own a house and have split up

If the co-owners did not have a "buy-out" agreement, there are several ways to determine the price of buying the other co-owner's interest.

Have they both contributed to the costs of owning the house (real estate taxes, mortgage, maintenance, etc.) since they purchased it?

Are they able to agree on the value of their time spent on fixing up the house?

Assuming they intended to have an equal (50/50) interest in the house:

1. A Current appraisal to determine the fair market value, from which they deduct their respective actual cash investments, and then divide the balance in half, as the amount to be paid to the other.

2. Simple reimbursement by the one who wants to own the house of the amount invested by the other, plus 1/2 of their purchase price, if that was not too long ago.

If they did not intend to have equal ownership, their respective interests may be represented as your daughter: 27.7% and her ex-boyfriend: 72.2%.

The easiest way to fund a buy-out is for the person who is buying out the other to refinance and use part of the refinance proceeds left, after paying off the existing mortgage, to pay for the other co-owner's interest. This will also require a deed from the seller of his interest to the person who will retain ownership of the house. The seller will also want to be released from the existing mortgage obligation.

Be aware that they cannot simply transfer the interest without obtaining the written consent of the existing mortgage holder, if the house will not be refinanced. That would constitute a violation of the mortgage and could result in default and foreclosure.

If they cannot agree on a resolution, it may be necessary to start a court action to "partition" the property, and get a court order for the sale of the property and division of the proceeds. This should be a last resort, because the ligitation is costly and time consuming.

I have represented several people in this situation. The ease of resolving the situation depends on their willingness to be reasonable and cooperate, but it can be done.

My NJ Office:

Suite 412, Stationhouse

900 Haddon Avenue

Collingswood NJ 08108

856-858-7775