Legal Question in Real Estate Law in New York

you could either sign an agreement or put the money into an escrow. In any event, hire a lawyer to properly prepare the deed, agreement and or to act as an escrow agent.

The solution to the first part of your question is to tender the money simultaneously with the signing of the deed. This is how a majority of residential real estate closings take place in New York. Someone (preferably a lawyer) must prepare the deed and all ancillary documents, which vary depending on the county where the property is located. Your siblings then sign these documents and have them notarized as necessary, but not release them to you. You will go to the bank and obtain a certified or official bank check in the agreed amount. Finally, you will then hand over the check to them in exchange for the documents.

I do, however, recommend that you hire an attorney to make sure that the documents are property prepared and executed. Because once you have tendered payment, it is often difficult, if not impossible, to have the seller re-sign the documents. I also highly recommend that you run a title search and even purchase title insurance prior to tendering payment, to make sure that you're not paying for a property with potential title issues, such as liens or judgments.

After receiving the necessary executed and notarized documents from your siblings, you must then record the documents with the county clerk (or City Register in 4 boroughs of NYC). If a title company is providing title insurance, they will record it for you.

As to your question regarding classifying the funds as a gift, it appears that your siblings may be looking to avoid paying transfer and/or capital gains taxes. However, you and your siblings may be surprised to know that receiving a gift of money subjects you to a gift tax, which may be higher than either of those taxes. You are permitted, however, to make gifts up to $1 million during your lifetime and not pay a gift tax. If you choose to do so, you must file a special form with the IRS and whatever amount you give will be subtracted from the estate tax exemption under the Unified Gift and Estate Tax statute. I suggest hiring an attorney or a tax professional to assist you in this matter.