New York State Real Estate Question (tenant, clause, property, lawyer)

[energygrrl]

Hello,
I am in Western New York.
In 2004 my Mom signed the deed of the house over to me.(its a double. IE up and downstairs) Sadly my Mother passed away last summer. My nephew was living with her. At the time of her passing my thoughts were to sell the house and leave the State. My nephew expressed an interest and I agreed at the time to sell it to him at a very reasonable and low cost. However since that time circumstances have made it apparent that I need to remain in the area, hence stay in the house. But I want to keep my promise to my nephew. Can I continue to either sell him the house or gift it to him yet have a clause that my son and myself may live rent free for the duration of our lives(I paid up the house after my Mom passed)
Is there a way to make that part of the contract?
Thank you very much for your responses.

[Rakin]

I would think what you've described is very possible. You need a local NY attorney to set it all up for you to make sure it's done correctly and avoid unnecessary taxes.

Seek legal help.

[MrRational]

As said, you can include anything into a contract.
The larger question is how practical it will be to honor it...
and in this case (iirc) how the presence of others will interfere with the reno work the house needs.

Rather than an open ended "until we die" type of deal (and at no cost yet!)...
how about a fixed period LEASE agreement, even a longish term (when son graduates from HS?)...
and include some sort of sliding scale of payment too.

Even a token amount until that time ($50/month?) is more "businesslike"...
and the lease protects both of your interests.

hth

[NY Annie]

In some states, you can deed the house reserving for yourself "a life estate". You need to contact a NY real estate attorney for both an answer to your question and the appropriate deed.

Originally Posted by http://legal-dictionary.thefreedictionary.com/life+estate

life estate n. the right to use or occupy real property for one's life. Often this is given to a person (such as a family member) by deed or as a gift under a will with the idea that a younger person would then take the property upon the death of the one who receives the life estate. Title may also return to the person giving or deeding the property or to his/her surviving children or descendants upon the death of the life tenant--this is called "reversion." Example of creation of a life estate: "I grant to mother, Molly McCree, the right to live in and/or receive rents from said real property, until her death," or "I give my daughter, Sadie Hawkins, said real property, subject to a life estate to my mother, Molly McCree." This means a woman's mother, Molly, gets to live in the house until she dies, then the woman's daughter, Sadie, will own the property.

As has been noted in other threads, ownership of real property consists of many different rights: usually referred to as a bundle (envision a handful of sticks). Each stick refers to a specific right - right to sell, right to possess, right to mine underground, right to walk across (easement), right to air, right to sunlight, right to cut down trees, etc. Right to possess/inhabit can be deeded separately from other rights and that is basically what happens in a life-estate.

Attorneys in upstate NY - contact county Bar Association lawyer referral service.

[energygrrl]

Thank you all. I did consult an attorney and went through various case scenarios and I have made a decision that is agreeable to all parties involved.
Thank you all very much!