Legal Question in Real Estate Law in New Jersey

Additional information is required to properly answer your questions, but if both houses are on one property than any mortgage or equity line that is taken will go against the entire parcel. You may be able to obtain an equity line in your individual name or both you and your son's name that is secured against the property. Even if you were to give your son the home outright, it does not guarantee that he would be able to obtain the necessary equity line to perform the work needed. That will depend on his credit and other financial factors.

I would be happy to answer any particular questions or give some guidance on this issue should you wish to discuss it further.

Anthony P. Bufano, Esq.

(732) 530-0222

A home equity loan will be extended only to the legal owner of the property. You could transfer the property son+wife (in which case they may or may not be able to get the loan) or co-sign your son+wife's loan and pledge the property as collateral. Of course, there are personal, legal and tax considerations which should be evaluated before taking any action. Please feel free to contact me ASAP so that we may explore your options and protect your legal rights. 973-921-0600.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

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I concur with the other authors, but add that perhaps a subdivision of your property may be required or may be suggested to avoid having a lender try to secure any loan by the entire property (both houses), since they are on a single lot. This may be required anyway and I do not know the zoning requirements or limitations that may be involved with 2 houses on a single lot, with one owner of the lot, but 2 owners of the houses.