Property Q&A in Ocean City>Question Details

Ray, Home Owner in Ocean City, NJ

I am partners in a house. I would like to transfer the deed to 100% my ownership (at an agreed to buy out) and refinance under my name. How in NJ?

Asked by Ray, Ocean City, NJ Tue Oct 25, 2011

The mortage is current in both names - I was told I can draw up a deed to transfer ownership at the same time that I re-finance under my name only. This can be handles by the title company at the time of teh re-finance. Is this accurate? If so - what are the tax consequences for both myself and my partner. The house is currenly $40k under water.

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Hi Ray. What you are trying to do can be accomplished. First, I recommend to have a Current Market Analysis of your Ocean City property and confirm your estimated $40,000 short fall. Then I would contact a mortgage professional for a pre approval and financing options. Perhaps if you have equity in another property this could avoid having to bring cash to the settlement table. Once you have these "ducks in a row" you should be able to bring your deal to a title company, or a real estate attorney if you prefer.
Being a realtor with Prudential Fox and Roach, we have an affiliated mortgage company , Trident Mortgage, and a title company, Trident Land Transfer Co. right here in Ocean City so we canprovide "one stop shopping" to do all of these things. Feel free to call anytime on my cell phone 609-665-2031 to discuss further. Best wishes and good luck.
0 votes Thank Flag Link Wed Oct 26, 2011
Ray,
I suggest that you call a local Ocean City real estate attorney for the deed tranfer and speak to your accountant about any tax issues related to you and your partners property. I can reccomend a good one if you would like me too. Email me at Kenfowser@comcast.net
Web Reference: http://www.kenfowser.com
0 votes Thank Flag Link Tue Oct 25, 2011
Ray,

You are getting accurate advice from both Deborah and Rick. Your tax implications can only be answered by your tax preparer but if you prepare your own taxes, definitely seek advice from an accountant. I agree with Rick, your biggest obstacle will be the appraisal for the refinance. If you are $40K "underwater", you may need to bring money to the table in order to refinance. First I'd attempt to have a Realtor give you a realistic value of your home before you start any process with the lender or pay for an appraisal through the lender. Let me know if I can be of service to you and I'm happy to guide you through this process. Kevin Redmond, Broker/Salesperson, Ocean City Realty, 609-513-6220, kgredmond@comcast.net
0 votes Thank Flag Link Tue Oct 25, 2011
You need to get with a good mortgage lender to make sure you are qualified for the amount of money you need to accomplish the buyout. A Title Company can handle the deed work as well as the title work for the loan, and you can take care of everything in one place. Know that the mortgage lender will require a appraisal for the qualification of the loan , and the 40K loss in value could cause a problem. as far as tax consequences, your tax preparer is the only accurate answer to that question.
For recommendations or Real Estate Expertise call Rick Adams, 609-399-7100, richardadams@remax.net
0 votes Thank Flag Link Tue Oct 25, 2011
What you are able to do, and what is best for you to do are not always the same thing.

Yes, you can do a Quitclaim deed, and you can prepare one yourself (not recommended if you are in unfamiliar territory), have a title company prepare one for you, or hire an attorney.

You should understand deeds fully and the ramifications of your decisions before embarking. The exact impact will vary in each person's circumstances.

The refinancing options will vary by lender and seasoning may determine your options. How long your name has been on the title may impact your choices for refinance.

I suggest that you speak to a mortgage rep and find out what refinance options are available to you. Before proceeding with decisions, speak with a tax professional adviser who will tell you the impact of your actions. Chat with an attorney to find out if a quitclaim deed meets all of your needs. A quitclaim deed does not carry any warranties with it. A lender will require title insurance and full title search before a refi.

My recommendations:

1) Lender First - Learn available options
2) Tax Advisor Second - If you pursue one of the available options, what are the tax implications?
3) Attorney - Get legal advice on the plan before execution.
0 votes Thank Flag Link Tue Oct 25, 2011
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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