if the lender for the new property
is insisting that the loan include
my spouse’s name, and that
my spouse must also be on the
deed? Is this a problem?
The taxpayer (name that appears
on the deed) for the sale of the
old property must be the same
taxpayer on the deed for the new
If you sell as John C. Investor,
you must buy as John C. Investor.
Sometimes, for credit and underwriting
reasons, the lender will require
that both husband and wife appear
on the loan. To secure the loan,
the lender will also require that
both names appear on the deed.
Depending on the particular situation,
this may be no problem. Carefully
review the following examples
for the various scenarios.
If you sell the old property for
$100,000, and you are buying the
new property for $200,000, you
only need to acquire $100,000
of the new property (in this case
50%) to satisfy your exchange.
You and your spouse could be equal
owners of the new property.
If the new property will cost
you $150,000, you will need to
acquire two-thirds ($100,000/$150,000
= 2/3) to satisfy your exchange.
Your spouse can acquire the other
one-third. Your lender may or
may not accept the fact that your
spouse is on title for less than
50%. You might try having the
deed show that you and your wife
are joint tenants, without specifying
a percentage. This will make the
lender happy, and the actual percentage
that you each own can be shown
on the exchange documents and
If the new property will only
cost you $100,000, you have a
problem. You must acquire 100%
of the property to satisfy your
exchange. In this case, there
is no room for your spouse to
be included on the title. Adding
your spouse will definitely jeopardize
your exchange. You can help build
your case for the IRS by getting
a letter from the lender that
states their requirement to have
your spouse on title. Therefore,
if you get audited, you can give
an solid explanation about why
your spouse is on the title. Hope
for an understanding auditor.