Quick overview

When one co-owner wants sole ownership, the typical path is: agree on a buyout price, the buying owner obtains a new mortgage in their own name, the lender funds that refinance, the seller receives the buyout funds, and the seller’s interest transfers by deed and is recorded at the county register of deeds. If the co-owners cannot agree, a court partition may be necessary under Nebraska law. For Nebraska statutes and court rules, see the Nebraska Legislature website: https://nebraskalegislature.gov/laws/statutes.php and the Nebraska Judicial Branch: https://supremecourt.nebraska.gov/.

Detailed answer — step-by-step process

1. Confirm the ownership type and title issues

Start by checking the deed and public records to see how you and the other person own the property (joint tenants, tenants in common, etc.). Ownership form affects rights and the transfer process. Order a title report if there are liens, judgments, or title defects you must clear before refinancing. Your lender will also require a title search and title insurance.

2. Agree on a buyout amount

Agree on how much the other owner will receive. Common methods:

• Professional appraisal to set fair market value, then split equity according to ownership shares.
• Mutual agreement based on a broker price opinion or comparable sales.
• Mediation to resolve disputes over value.

3. Obtain a payoff statement for existing mortgage(s) and calculate cash needed

Get a current payoff figure from the lender(s). The buying owner needs enough new loan proceeds (or cash) to pay off existing mortgages and to cover the seller’s equity. Also plan for closing costs, title fees, recording fees, possible prepayment penalties, and reserve requirements for the new mortgage.

4. Apply for refinancing in the buying owner’s name

The buyer typically refinances the property into a new loan signed only by the buyer. Common lender requirements:

• Good credit score and debt-to-income ratio that meets lender guidelines.
• Proof of income and assets to cover mortgage payments and reserves.
• An appraisal ordered by the lender to confirm property value.
• Clear title or resolution of title defects and liens.

If the buyer cannot qualify for a refinance alone, options include a co-signer, seller financing, assumption (if the lender allows), or buying the seller out using other funds.

5. Closing the refinance and paying out the seller

At the refinance closing the new lender will pay off the old mortgage(s). If the new loan amount covers the seller’s buyout, the closing agent/settlement company will disburse funds to the seller. The seller should sign a deed transferring their interest to the buyer (often a quitclaim or warranty deed). Confirm the deed wording matches the transaction and is properly notarized.

6. Record the deed and lien documents

Record the deed at the county register of deeds where the property sits. Recording completes the transfer and provides public notice. The lender will record the new mortgage lien. Keep copies of all recorded documents and the closing statement.

7. Post-closing steps

• Update homeowner’s insurance to show the new owner and lender as appropriate.
• Update property tax records and homestead exemptions if applicable.
• Provide the seller receipts and a final settlement statement showing the pay-out.

8. If the other owner refuses to cooperate

If the co-owner will not sign a deed or agree to a buyout, Nebraska law allows a forced partition or sale through the courts. A partition lawsuit asks the court to divide the property or order a sale and split proceeds. Partition can be expensive and unpredictable; courts may order a sale even when one party wants to keep the property. For court procedures and filing, see Nebraska judicial resources: https://supremecourt.nebraska.gov/.

9. Tax and financial considerations

Buying out a co-owner can have tax consequences:

• Capital gains allocation depends on each owner’s basis and how long they owned the property.
• Gift tax or imputed interest issues can arise if the buyout price is below fair market value or seller financing uses atypical terms.
• Mortgage interest deduction and property tax deductions may change after the refinance.

Talk with a tax professional about gains, basis adjustments, and reporting requirements. Nebraska Department of Revenue resources: https://revenue.nebraska.gov/.

10. When to get an attorney

Consider hiring a Nebraska attorney when:

• Ownership or title issues complicate the transfer.
• The co-owner refuses to sign and you may need a partition action.
• Large sums or complex tax consequences exist, or you need a buyout agreement drafted to protect both parties.
• The transaction involves unusual financing, hidden liens, or related litigation.

Helpful hints

• Start with an appraisal and a payoff quote early. That reduces surprises at closing.
• Use written agreements for the buyout terms, including payment timing and deed type.
• Work with an experienced title company or settlement agent familiar with your county’s recording rules.
• If you can’t qualify for a refinance alone, explore seller financing or an assumption before pursuing litigation.
• Budget for closing costs, reserves, and any real estate transfer fees or taxes.
• Keep clear records of all communications, offers, and signed documents in case of dispute.
• Consult both a Nebraska real estate attorney and a tax advisor before finalizing the buyout.