2006-09-15 17:09:49 · 6 answers · asked by amelia 1 in Family & Relationships ➔ Other - Family & Relationships
You have to offer your partner fair market value for his/her share of the property. Calculate as follows:
Find out what the property is worth. Subtract what you still owe on your mortgage. This figure tells you how much equity you have in the property. Then (assuming you and your partner have equal shares) divide the difference by two. This is what you offer.
Easiest and least costly option is for them to sign a quit claim deed in return for your payment. It is usual for each party to pay half each of the transaction costs (taxes, searches, fees, etc), which will vary greatly depending where you live.
Other costs to allow for include independent appraiser(s), and lawyers or title professionals. There are a lot of issues which need to be addressed and you cannot do this without professional help. There will also have to be negotiation on such things as who pays for what, and all the details have to be spelt out in a written agreement between you.
Amongst other things you will also need to arrange with the lender to have the other person's name taken off the mortgage. The lender may not be prepared to do this if, for example, you were on a lower income. But if there is enough equity in the property you should not have a problem. If you do not have the cash to buy out your partner, you may need to take out a larger loan. This means refinancing and more fees and charges.
You really have given us no information on your situation. We don't know whether this is going to be an arm's length transaction, a sweetheart agreement, or whether the relationship is badly strained.
The above assumes your partner is willing to sell at market rates. If not, you cannot force them to. They may also want more than market value, and not much you can do about that either. It is a question of how badly you want to end the parrtnership.
I am also assuming that the market value of the property exceeds what you owe. If not, you have negative equity and they should be paying you to have their name taken off the mortgage. But that also means you might have other problems with the lender.
2006-09-15 17:47:20 · answer #1 · answered by Zardoz 2 · 0⤊ 0⤋
You take out a new mortgage which covers the balance of the old mortgage plus the equity share of your partner.
2006-09-15 17:29:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you don't have the cash, you'll have to refinance in your name only and your credit only.
2006-09-15 17:11:31 · answer #3 · answered by spitonapit 4 · 0⤊ 0⤋
change the locks
2006-09-15 17:11:42 · answer #4 · answered by GiGi 4 · 0⤊ 0⤋
give him/her the money
2006-09-15 17:13:17 · answer #5 · answered by Anonymous · 0⤊ 0⤋
you can't. you have to have it refinanced.
2006-09-15 17:15:46 · answer #6 · answered by phatpatonpepper 2 · 0⤊ 0⤋