How to Buy Partners Out of a Mortgage

When you buy a home with partners, you're all equally liable and responsible for the mortgage. If co-ownership is no longer ideal, an owner can choose to buy out the other partners and assume full ownership. For a successful buyout, partners must be on the same page. Once you reach an agreement, the process is straightforward and painless. Although the specific requirements may vary among states, the procedure is the same throughout all 50 states.

Hire an appraiser to assess the home's current value. Although you can estimate the value of the property by comparing it to similar recently sold homes, a professional appraisal will give you the most accurate value. According to, appraisals range between $250 to $350 for a standard single-family home.

Subtract any outstanding mortgages or liens from the market value to reveal the home's equity.

Add up how much each partner contributed. If you each paid an equal share of the mortgage, down payment and closing costs, you can divide the equity equally among the partners.

Agree to a buyout amount. Choose a price that all partners feel is fair. Since you'll need to refinance to remove the partners, decide how you will share the closing costs.

Contact a lender to refinance the mortgage solely in your name. You'll need to meet the lender's requirements for obtaining a mortgage without the other borrowers. If you need to tap into the equity to pay off the partners, a cash-out refinance is an option.

Attend the closing with the other partners present. Only you will need to sign paperwork related to the refinance.

Pay your partners the buyout price as agreed.

Complete the quit claim deed. Your partners will need to sign a quit claim deed that "quits" their ownership interest in the home. List the partners giving up ownership as grantors. Since you are receiving their shares, you are the grantee. Your partners must sign the deed.

File the quit claim deed at the county recorder's office.


  • Check your state laws for additional paperwork requirements. In some states, including California, you must complete and file a Preliminary Change of Ownership Report along with the deed. The report is a questionnaire used to determine if a tax reassessment is necessary based on the nature of the transaction.

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About the Author

Jeannine Mancini, a Florida native, has been writing business and personal finance articles since 2003. Her articles have been published in the Florida Today and Orlando Sentinel. She earned a Bachelor of Science in Interdisciplinary Studies from the University of Central Florida.