Gifting $$ to my fiancé to buy a house together (agent, investment, mortgage)

[mix98]

We (my fiancé is from NY and I am a foreign national working on K1 visa) decided to buy a townhouse in NY. We are spliting our downpayment and closing costs (my money is from outside of the state and will be gifted to him at closing:$50,000) and he is going to take out the mortgage loan by himself to cover the rest of the purchasing price of our house. Because of my fiancé's income/ loan ratio, I chose to gift money to him.

Yesterday we signed the contract together. My fiancé paid the deposit which will be his portion of the downpayment. The seller contacted our agent he will sign as soon as he gets the check. So it seems like we have a solid deal here..

My concern is that I am so unfamiliar with home buyig process in NY that I am not really aware what are the implications of my choice. We are heavily relying on my fiancé's lawyer for legal advices. But I had a hard time establishing some sort of written agreement to protect both interests.. He says as my name is on the contract, it should be on the deed unless I have a serious reason I can't be on the deed.. ex I am on terrorist list..

His lawyer advices us not to record(a receipt that he received the cash from me or promisorry note between my fiancé and me) how much money I am putting towards the house. His explanation is that this record will only harm my interest as it s saying I am only entitled to my initial investment instead of getting my share of the improved equity of the house). I am not really looking into getting benefits here as I dont see buying a house with my fiancé as investment. I am slightly worried about signing the gift letter and not having any say in the case of unfortunate situations. Does any one can explain to me this more clearly perhaps with some suggestions?

We will probably also have to let his lawyer know what kind of ownership we should take.. My fiancé wants to take joint tenancy as we are not married and it may protect us better especially with tax related issues. My fiancé wont mind me being the equal owner of the house. So should I recognize him putting me on the deed as a gift to me in return of my contribution? If so, joint tanancy would be better for us?

Thanks for reading my messy writing and I'd appreciate your advice.

[STT Resident]

My advice? Get your own attorney to represent your interest.

[Rowan123]

Originally Posted by STT Resident

My advice? Get your own attorney to represent your interest.

^^ This and consider talking to an accountant as I think there are probably tax implications for both of you for gifting that much money.

[mix98]

We confirmed he won't be taxed unless the gift money from overseas exceeds over $100,000. I am not sure if this is the case for me as well. As far as I know $13,000 is the maximum money without tax per gift.. Please correct me if I am wrongly informed..

[blktoptrvl]

Originally Posted by mix98

...
His lawyer advices us not to record(a receipt that he received the cash from me or promisorry note between my fiancé and me) how much money I am putting towards the house. His explanation is that this record will only harm my interest as it s saying I am only entitled to my initial investment instead of getting my share of the improved equity of the house)....

If things go bad in the end as so many do, how do you prove that you put that money up. Or is it insignificant to you.

And I certainly wouldn't be taking tips from a lawyer who is advising you to break the law or defraud.

As someone else said... GET YOUR OWN LAWYER.

[mix98]

I dont really know any attorney here.. I am very new to this type of transition.. and arrangement. Should I google real estate attorney in Brooklyn as we are reside here?

I am going to write a cashier's check to my fiancé.. Won't be the evidence I gave the money to him? Also, my name being on the deed wont protect in the case sth goes wrong?

[STT Resident]

Originally Posted by mix98

I dont really know any attorney here.. I am very new to this type of transition.. and arrangement. Should I google real estate attorney in Brooklyn as we are reside here?

I am going to write a cashier's check to my fiancé.. Won't be the evidence I gave the money to him? Also, my name being on the deed wont protect in the case sth goes wrong?

Go to the Brooklyn NY forum and ask for referral suggestions. You don't have to to get into details, just say you're getting involved in a real estate transaction with a partner, need someone to represent your interest and would appreciate DM (direct message via City Data) referrals from contributors. Or you can contact the Brooklyn Bar Association and ask for a referral. In fact, do both.

I wouldn't hand over any money in any form without legal counsel. I learned the hard way and would prefer to see you go about it the right way. Your fiancé should appreciate your due diligence.

[FalconheadWest]

Why don't you go to the JP, get married and buy it "together" so there is no gift taxes. Then, you can have your big ta-dah wedding later.

[mix98]

Originally Posted by STT Resident

Go to the Brooklyn NY forum and ask for referral suggestions. You don't have to to get into details, just say you're getting involved in a real estate transaction with a partner, need someone to represent your interest and would appreciate DM (direct message via City Data) referrals from contributors. Or you can contact the Brooklyn Bar Association and ask for a referral. In fact, do both.

I wouldn't hand over any money in any form without legal counsel. I learned the hard way and would prefer to see you go about it the right way. Your fiancé should appreciate your due diligence.

thanks very much for ur advice.. This will work and my fiancé knows how much it takes for me to do this. I will proceed with caution..

[Flamingo13]

Originally Posted by FalconheadWest

Why don't you go to the JP, get married and buy it "together" so there is no gift taxes. Then, you can have your big ta-dah wedding later.

I agree with this - too many things go wrong, a gift of $50,000???? - yikes! Have everything legal and in writing!