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I bought a house with a friend. Now I would like to be removed

 
Debra Thal's Avatar
  • Answered by:Debra Thal
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Customer Question

I bought a house with a friend. Now I would like to be removed off of title and mortgage. The bank requires both of us to sign a purchase agreement. ( my friend, will remain on title and mortgage)
We have a copy of a current real estate purchase agreement.
What information is most crucial on the contract to protect me?

 

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Province/Territory relating to question: Alberta

Already Tried:
Reviewed the purchase contract and had initial areas to cross out and find out from bank ( briefly) what they require

Submitted: 333 days and 15 hours ago.
Category: Canada Law
Value: CA$54
Status: CLOSED

Accepted Answer

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Expert:  Debra Thal replied333 days and 15 hours ago.


Debra Thal (username) :

If the bank required that you sign the offer the bank is not going to let you off the title or the mortgage.

Debra Thal (username) :

Did you check with them?

Customer : I am unsure of what you are saying.
Customer : Initially the bank said to be removed off of title, I could do so by going to Land titles. This has be done. Additionally, they told both of us, that an error was made in the original mortgage product sold to us. It was not a basic mortgage, but we were given a Home Equity mortgage.
Customer : Now another condition, for me to be removed off of title, is for us to sign a purchase agreement. Does this help, to answer my question?
Debra Thal (username) :

Yes

Debra Thal (username) :

They are saying that they want your situation to appear as if your friend is buying you interest from you.
Is that it?

Customer : Hello. Are you there?
Debra Thal (username) :

Yes but I think you are missing my post.

Debra Thal (username) :

I said:

Debra Thal (username) :

They are saying that they want your situation to appear as if your friend is buying you interest from you.
Is that it?

Debra Thal (username) :

Are you having trouble accessing the chat?

Debra Thal (username) :

I can change this to a question and answer format if that helps.

Customer : Thank you. I did have trouble viewing your post. Honestly, my friend received the informatiom verbally and some comments about content of purchase agreement were via email. I have this. There is nothing in writing per se as to why bank needs it, but this is their requirement.
Debra Thal (username) :

I find that odd.

It makes no sense to me.

If your friend is not buying your interest there is no way to do a bona fide purchase agreement.

What is happening is that you are transferring title to your friend. Is that not all that is going to happen?

Customer : It's hard for me to see your entire reply.
Customer : Right. I am transferring title to my friend, but the bank requires a purchase agreement
Debra Thal (username) :

You have to scroll to the top of your screen each time, I guess.

I think you have to tell the bank that their is no purchase agreement and there is no purchase. You are just transferring your title.

Debra Thal (username) :

s

Debra Thal (username) :

Ask why this is necessary and where they think you can get such an agreement. And say you are concerned as the agreement would not be bona fide though you can say title is being purchased for a dollar I suppose.

Customer : I am confused. The bank has stated that we need to complete a purchase agreement.
Customer : So yes, we were gonna put $10 as the purchase price.
Customer : Once this is done, I should be removed off of title. Thus, my original question, what should I be concerned about when we fill out this agreement?
Debra Thal (username) :

There is no real concern but it's odd that it's being required.

Where did you get the agreement from?

Customer : Ok. Thank you. I am protected legally then, the other person left on title can't come back and say something. Perhaps, that's what the agreement is in place for, to ensure both parties are agree and the other can't come back and say something in contrast. I received a real estate purchase agreement from a realtor. It's a current, Alberta one
Debra Thal (username) :

I find this a bit disconcerting. Do you have time to see a lawyer as you can do so for free.

I don't like you signing a legal document because the bank says so without knowing all that it says.

Customer : I agree, it's been confusing and time is a factor. I am leaving for out of country vacation tomorrow. I'm trying to see a friend of a friend whom is real estate lawyer. How shall improceed
Debra Thal (username) :

You can see a lawyer for free through the referral service but not today.

Seeing the friend of a friend is a good idea.

Customer : Oops, how should I proceed?
Debra Thal (username) :

That lawyer will take two minutes to review the offer and you will be set.

Debra Thal (username) :

If you can wait until you get back then

Debra Thal (username) :

you can contact the Law Society and use their Lawyer Referral Service. You will be given the name of a lawyer and can consult with the lawyer and the first half hour will be free.

Debra Thal (username) :

Let me find you the number.

Customer : Ok. Thank you. If I see someone today, how should imp resent the info? You were quick to get gist of it after a few key questions. How can I tell lawyer?
Customer : Oops, I should i present the facts to my lawyer friend?
Debra Thal (username) :

The number is:

1-800-661-1095 or 403-228-1722 in Calgary

Debra Thal (username) :

Just say what you said to me.

Debra Thal (username) :

You are about to go away and need a minute's advice.

Debra Thal (username) :

You are transferring your name off title.

Customer : Thank you Debra. I can call them today?
Debra Thal (username) :

The bank wants to see an offer to puchase etc.

Debra Thal (username) :

Is this offer OK to sign for you?

Debra Thal (username) :

No you cannot call them until tomorrow morning.

Debra Thal (username) :

So try and get your friend's friend.

Customer : Ok. Well, for here. You helped confirm my concerns about signing this agreement, but didn't address my specific conerns of content of agreement
Debra Thal (username) :

I cannot review the agreement.

I think there is not much risk but I would feel much better with a lawyer actually quickly reading the agreement.

Customer : Ok, so how does this work? I say all is well and get charged $54.
Debra Thal (username) :

I cannot advise on content. I am only permitted to give information and not advice but I also cannot see the agreement.

I don't think anyone should sign a legal document, ever, without a lawyer actually reading it and advising and am glad to see your instincts are right about how you need to be protected.

Debra Thal (username) :

You have already paid.

Customer : I appreciate your time and being able to speak with you at least. With time being a factor, hard to get all sorted. I want understanding
Debra Thal (username) :

If you rate me one of the three top ratings I get paid.

Debra Thal (username) :

If you choose one of the bottom two I don't get paid and my stats are hurt.

Debra Thal (username) :

Yes you are sure are under pressure here unfortunately.

Debra Thal (username) :

It's always a problem getting ready to go away and relax! This seems to happen to me no matter what I do.

Customer : Thanks. In any case. I was just confirming that I would only be charged $54.
Debra Thal (username) :

Yes

Customer : God bless and thank you for confirming things. Will I be able to review an archived account of our chat, later?
Debra Thal (username) :

You are not charged again.

Debra Thal (username) :

Yes you will.

Debra Thal (username) :

The post does not lock.

Customer : Ok. Thanks and have a good day
Debra Thal (username) :

You too and enjoy your holiday.

Customer : Thank you. I trust I can speak to someone today, if not, more trust.

Expert TypeLawyer
Category: Canada Law
Pos. Feedback: 98.2 %
Accepts: 37930
Answered: 6/24/2012

Experience: Lawyer

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