Expert: Hans Weber, Licensed Broker Associate - 10/20/2006

Question
Hi Hans,
My parents and my family currently live in two different houses in New York. We are planning on moving next year to New Jersey, and my parents, since they want to stay close to us, have proposed to sell their house and buy a house together (we would build an apartment with a separate entrance attached to the house). How would this work? I assume they would have to co-sign on the mortgage. How would we be able to take full ownership without paying gift taxes? What other legal ramifications should I be concerned about? Thanks so much for answering.

Answer
Hi,

Thank you for your question.

Before you build an addition onto a house for a second family unit be sure the local zoning allows for it.  You may best be suited to buy a property with two houses on it already or two houses next odoor to each other.

The legal ownership form that you choose will depend on many factors and you should really consult with a real estate attorney to be sure you can accomplish your goals in a way that will benefit you most depending on what happens in the future.

Good luck with your move.  If you need help listing your home, let me know.

Hans