Expert: Dick Dennis - 1/18/2007

Question
In June of 2006 Myself and a partner bought investment property together. I am on the loan and the home is in both of our names. The property was supposed to get sold before I had to make payments on the loan but it wasn't..The payments are too high for me to afford. My partner who I don't trust, wants to get the house refinanced in her name so I can get out from under the loan, and cut my ties with her. She said she would give me back the money I put into it ($10,000.00) less 2006 taxes. She said she needs me to sign a letter stating I sign all rights over to her  for the amount of $10,000.00 less 2006 taxes, to give to her lender to show she needs to add $10,000.00 to the loan to pay me off. If I don't give them
(the lender) that letter stating that, she said she can't get the extra money to pay me. I want to know is there any type of form that covers this. I don't want to sign anything until I have a check in hand. Does she really need this letter to show her lender to get the extra money? If so then what exactly do I put in this letter. Does this make since to you? She is very knowledgeable about this stuff, and she knows I am not...Please help me, I have a new baby and I can't afford a lawyer, Your my only hope.

Answer
You don't need a lawyer, Chris, but I strongly suggest you do hire one to make sure this all goes down right.

This you must do: You will execute a quit-claim deed or a warranty deed to your ex-partner (by the way, never form a partnership with anyone you cannot trust!) You then take that quit-claim or warranty (or grant deed, depending in what state the property is located) deed to an escrow company or a title company. You are going to have additional costs in this matter if you want to protect your interests. In effect, you are going to do what real estate people do. The title company or escrow company acts as the neutral third party to make sure you get your money and she gets title to the property. If you don't know what you're doing that is the ONLY way this can be done. Just make sure that she splits all costs with you (at least)in this matter.

In some states, attorneys handle these kinds of closings. If you are in one of those states, then you have no choice in the matter. So, now go and make your phone calls and find out who you should use. I do wish you well.

Dick Dennis                    dixiedee13@aol.com