My grandmother is in her mid 80's and alive and well. Bought in to the co-op 30 plus years ago and is planning on staying put till her end days. I am wondering if there is an opportunity to inherit/buy the co-op from her at a discounted rate and profit from the deal. In no way do I want to take advantage of her but rather take advantage of the situation.
I am not familiar with the laws or contractual agreements when one purchases a co-op. I would imagine she has a right to sell and in reality could leave it to an heir if she chose to? If I did inherit it I assume I would be able to move in and continue paying at her rent controlled rate or sell it at todays market value?
Looking for any and all advice on the subject. Should I have my grandma get a copy of her contract? If so what should I look for in there? Without a will what will happen to her apartment?
If she owns it, it’s not rent controlled.
If is a co-op they (the board) usually look to approve buyers. There should be deed restrictions available on register of deeds website that can provide you further info on what is / isn’t allowed.
I'm not sure how close you are with your grandmother, but first I would say speak to an estate attorney. If it goes through probate, that could hurt you from a tax perspective. Not to mention that if you do this as purchase, you (or your grandmother) will have to pay flip tax which is based off the profit depending on the building. The best bet would be for you to be added to the stock and lease (in other words a co-owner) and after some time remove her from the stock and lease. This would potentially allow you to skip board approval if the process for adding an occupant to the stock and lease is less burdensome. Co-ops are not subject to fair housing laws, so they have the right to decline you from purchasing without having to give any reason at all. depending on how close you are with your grandmother and how often you visit, it may make sense for you to find out who is on the board in the building and befriend them. I'm sure that relationship will come in handy at some point.
First, yes you can inherit your Grandmothers property if she leaves it to you in her will. Typically, in her proprietary lease it will allow succession so you could move in without additional board approval. Also, most likely the basis for your inheritance will be the value at the time your Grandmother passes and you inherit. So, if she purchased it for $100,000 30 years ago and its value was $600,000 at her passing, you would get the inheritance at $600,000 and would not have to pay taxes on the profit from the original purchase price. Bear in mind that I'm not giving any advice and I'm a real estate agent, not an attorney. Your situation could be unique and not follow these norms.
Talk to an NY Real Estate Attorney.