Own a Home With Your Significant Other? Listen Up.

DEAR BOB: Two years ago my partner and I bought a condo. I paid the entire down payment and we have split the mortgage payments, condo fees and property taxes since then. However, he recently moved out and says he wants his half of the equity, which is about $45,000. I don't have the money to buy him out. Can he force the sale of our condo? -- Tamara Y.

DEAR TAMARA: If both names are on the title, the answer is yes. Your ex-partner can bring a partition lawsuit to force the sale of the condo with a split of the sales proceeds. However, if his name is not on the title, he can't bring such a suit.

You will need to hire a lawyer if he sues for partition so your interests can be protected. Because you paid the down payment, your lawyer would make certain you receive that amount before the sales proceeds are divided.

A partition sale is a possibility whenever two or more individuals take title to real estate together. For this reason, it is wise to consider other forms of co-ownership, such as a partnership agreement, which prohibits a partition lawsuit.

DEAR BOB: I recently heard financial adviser Suze Orman suggest that a home buyer can pay up front for his or her PMI premiums by paying 1 percent of each $100,000 of the mortgage. She says most mortgage lenders don't explain this. Is this true? -- Tany A.

DEAR TANY: PMI premiums can be prepaid, but why in the world would you want to do that unless you receive a huge discount? It makes no sense to prepay PMI, especially since PMI fees are not tax deductible, although Congress is considering making them deductible, like mortgage interest. Another reason not to prepay PMI is you might sell the property and pay off the PMI mortgage, or you could pay down the mortgage balance to get the PMI premiums removed.

DEAR BOB: Last year my mom quitclaimed her house title to herself and me. She recently lost her job and I started paying her mortgage. After my name was added to her title, I married. My wife and I are now paying the mortgage. Can I add my wife's name to the title so title will be held by my mom, my wife and me? -- Kevin K.

DEAR KEVIN: If your name is already on the title to the house, you can then deduct the mortgage interest and property taxes you pay on that property. Why complicate things by adding your wife to the title? In some states, such as California, that could cause a partial property tax reassessment.

I don't see any advantage -- only several disadvantages -- to adding your wife's name to the title. The mortgage interest and property taxes you pay will still be deductible on your joint tax return because you are legally obligated to make those payments. Consult a tax adviser for details.

DEAR BOB: My mother and I owned a house together as joint tenants with right of survivorship. She died about eight years ago, but her name is still on the title. Will that prevent me from selling the house? -- Craig S.

DEAR CRAIG: Temporarily, yes. In most states, when one joint tenant with right of survivorship dies, all that is required to clear the title is for the surviving joint tenant to record a certified copy of the death certificate and an affidavit of survivorship.

This should be taken care of as soon as possible after a joint tenant's death. Until you clear the title, you can't convey marketable title. For details, please check with the recorder of deeds where the property is located.