AboutHans Weber, Licensed Broker Associate Expertise I am able to answer questions related to buying or selling residential real estate in New York. There are many questions buyers and sellers have about the process of buying or selling a home that they are afraid to ask or that might seem too simple to ask. For instance: in a house, why do some doors open in and some doors open out?
Experience Licensed real estate agent in New York State in 1988.
Serving buyers and sellers as a full time occupation since 1988 with over 300 successful residential real estate transactions.
Organizations National Association of Realtors.
Westchester County Board of Realtors.
Education/Credentials Graduate of Pace University in 1988 majoring in business and minors in taxation and computer science.
Awards and Honors Consistently one of top sales awarding winning agents for Coldwell Banker in Westchester County.
Question My brother, sister and myself purchased a house as income property 8 years ago. We have been renting it, and it's value has tripled. Recently our brother agreed to be bought out. He is currently on the deed and mortgage. Do we need to have a "closing" to get him off the deed and mortgage? Can we sell it for the same price we paid for it to avoid capital gains?
Answer Hello Mike,
Thank you for your question.
If there is a bank/mortgage involved I think you will need to have a closing where the two remaining owners refinance the property and remove the third from the deed. You can check with the bank holding the mortgage to be sure what they will require.
As far as what the two pay the third, that is up to you to agree to. If you sell it for what you paid for it then in the future the two remaining will have a greater capital gain. That is a question for your accountant or real estate lawyer to guide you in the right direction depending on your overall financial situations.
