Expert: Dick Dennis - 8/10/2006

Question
My partner and i have just recently split,we bought a house together on aug 6th 2005.my morgage repayments are 445.00 a month,which comes directly out of my bank.how much would it cost me to but her out of the house,so i have sole ownership?we bought the house for 75000.it is now worth 98000.your help in this matter would be gratefull.

Answer
You can buy her out for whatever you feel the value is worth, Anthony. But be aware that the market may be lower than you think it is. I don't know where you are, but that is what is happening to the market these days. Unless you bought the property for a "steal," I would say you should pay her half of what the market actually is. I would be glad to tell you how to "split the sheets," but you didn't tell me how much the mortgage balance is.

However, if you paid $75,000, and your monthly payments are $445, I am going to guess you put nothing, or close to it, down. So, I would say you would probably have to pay her about $5,000, making the full value of the property $85,000.

To make it simple, all she has to do is to execute a QUIT-CLAIM deed to you. Find yourself a real estate attorney somewhere to help you with that document. Better yet, YOU BOTH execute a WARRANTY deed to you alone.

A warranty deed ensures that the person(s) who sign the property over to you actually do have interests in the property. A quit-claim deed means that whoever is giving you title does not warrant that they have any interest in the property and whatever interest they do have, you can have. For example, I can deed you the Brooklyn Bridge or the St. Louis Arch. But, of course, it doesn't mean anything because I actually don't have any interest in it.

I do wish you well.

Dick Dennis          dixiedee13@aol.com