Q: My father bought my husband and I a house under his name. We want it under our name and plan to pay him back. Advice.
We like my dad to act as the "bank". House was paid full in cash. We plan to make a payment agreement because we want to feel like we worked to get this house and we can truly call it ours. We want the house to be under our name but we would like my father to put a voluntary lien on the house so he can feel secure and he can remove it when he feels he can trust us to take over the house regardless if we paid him back. What is the best way to go about this and what are the costs because we want to cover it? I have been reading about voluntary liens, deeds of trust and promissory notes. I'm getting really confused what is best for our case ? We all reside in NY. House is in Ny. House is worth more than a million. Just want something simple like I said we want the house to be under mine and my husbands name but we want my father to feel secure at the same time.
A: You can record a deed to you and your husband and a mortgage to your father. The issue is that New York has a steep mortgage tax, so the amount of the mortgage will be critical.
A: There may be additional tax issues including state transfer taxes. It would be prudent to sit down with a lawyer that is able to prepare the ultimate deed and mortgage you are hoping to record and discuss the tax consequences of your intended actions before you act.
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