Hello. I live in a co-op apartment in New York City that my parents own. The studio apartment next door has just come on the market and I would like to buy it and combine the apartments. The co-op board rules dicatate that both apartments must be under the same title holder's name in order to combine the apartments. My parents are willing to give me the apartment and we will work out how much I will pay them when I sell both apartments. Is there a way for my parents to sign over their apartment to me or do I have to buy it from them? Will they incur capital gains if they sign it over since it's value has gone up since they bought it?
Thank you in advance for your thoughts.

Would the board allow your parents to add you to their deed making you a part owner??

If not they can quit claim it to you. Any local title company shold be able to do either option for a fairly small fee.

They would probably have some capital gains liability; their tax advisor can help them with that.

Capital gains would be on the difference between what they paid for it and it's current value.

Thank you for your reply. I will have to check with the board to see if my parents can just add me to their deed. Can you tell me more about what you mean by "they can quit claim it to you"?

Sorry, sometimes we get so used to the jargon in a particular industry we assume everyone understands.

A quit claim deed is simply a deed your parents can sign "quitting" any claim they have to their co-op to you.

You can get a blank form online at www.USLegalForms.com, get a legal description of the co-op, have your parents sign it in the presence of a notary, record it at the local court house, and the co-op is yours.

It would probably be worth the small fee a local title company would charge to ensure it was prepared and recorded correctly so as to avoid any future title problems for you.

You will also need to review the Co-Op's Covenants, Rules and Regulations. Co-Op's are often difficult beast to work with... even more so than a Condo association.

Co-Ops often have many rules, some even vote on who can purchase and live in the properties... New York is famous for these so you need to check before you get too much money involved.