Legal Question in Real Estate Law in New York

Buy House from Parents

The home we (my family, 2 adults, 2 kids) currently live in belongs to my parents. They are retired and I want to buy a house. I was thinking of buying the home from my parents and having them hold the mortgage. I can pay them the interest and take advantage of the interest and real estate deductions. Is there a downside to this option.


Asked on 3/08/08, 5:43 pm

1 Answer from Attorneys
Debra Palazzo Law Offices of Debra Palazzo, LLC

Re: Buy House from Parents

I see no downside for either party but they should check with elder law attorney to see how receiving income might effect any medicaid planning they have or may want to do. They may want to set up some sort of Trust to receive the pymts.

If you have siblings who expect to inherit the house, you may want to keep them informed. After your parents pass on, you will continue to owe the mortgage to parents Estate (assuming that is you and your siblings)unless your parents have a clause in their will forgiving the debt.

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Answered on 3/09/08, 10:19 am


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