Here is the situation, my wife and I purchased a property with a 3rd party. Now we want to buy out the 3rd party. Assuming we agree on a buy out. What do we need to do to make sure this is all legal and then is it a simple refinance or something more? Also looking for recommendations on who to finance this with. Thanks in advance.

Should be a simple refinance assuming the remaining two can qualify and if you are looking to pay off the third party with the proceeds from the loan you will need enough equity to do that.

Be happy to take a look at for you. My email is my screen name. We have been the title sponsor here for 15 years or so and helped countless posters.

Did you complete the initial purchase through a title company or just pay for the property and receive a deed?

Purchased through a title company

Then there shouldn't be any issues with title that can pop up on transactions that didn't go through a title company in the first place. So, it should be a fairly straight-forward transaction .

Are you in Texas? If so, if the property could be considered your homestead you might run into issues getting cash out to pay off the 3rd party. It can be done, you would just need to do an owelty of partition and lender can refinance the owelty lien. Would likely require an attorney to prepare that so the refinancing lender's lien could be valid against the entirety of the property. Of course if it's your homestead you might be able to do a home equity home as well.

I'm in Houston. Luckily I have cash on hand to pay the 3rd party out so I don't have to bundle that into loan. I just need to refinance under just myself and wife. I will get an attorney to handle the buy out agreement but it's there anything else I need to have them handle?

Prepare contract and deed and should be good to go. File the deed asap after execution. Might check with loan originators regarding refinancing after title is in your name and your wife's name.

all the above can be done at closing.

Prepare a contract at closing?

no, but there is no need for a contract. The refi will simply take off the third party while leaving two parties on the deed. There is no need a contract as it would be a simply refi, not a purchase.

Whether or not a contract is needed (or advisable) is going to depend on the agreement/relationship with that 3rd party who is being bought out. Not a bad idea to get the agreement regarding the transfer of his ownership interest in the property in writing now so expectations are very clear.

At the very least that party is going to have to sign a deed conveying his interest in the property over to OP and his wife at the closing of the refinance. Sounds like money is going to change hands between OP and the 3rd party as well, and if they are wanting the title company to handle that in escrow along with the refi, title company may want a contract. Again whether that level of formality is necessary or advisable really depends on the relationship of OP and the 3rd party, but it's never a bad idea to be too formal, even when dealing with friends/family (sometimes especially when dealing with them).