What are the steps involved in making my brother co-owner of my co-op apartment? 3 Answers as of April 29, 2014

I have paid off half of the mortgage on a co-op apartment which I rent out. My brother has enough cash to help me pay off the remaining 50% of the mortgage. He wants to become a co-owner, so we would split the rent collected. What are the steps involved?

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Peters Law, PLLC
Peters Law, PLLC | Mark T. Peters, Sr.
Since it may cause problems to put him on the deed before the mortgage is paid, I would think the best way to handle it would be to have a contract for sale of a interest in the coop. The contract would say that he would pay off the mortgage and you would deed him ? interest. While you can trust each other, the proper way to do this would be to hire an escrow company to hold the deed while it pays off the mortgage and files the release. When the release is filed, it would then file the deed showing the two of you as owners of interest. You need to consider whether you want to be joint tenants or tenants in common. If either of you have family other than each other, you probably want it to be tenants in common.
Answer Applies to: Idaho
Replied: 4/29/2014
Durham Jones & Pinegar | Erven Nelson
There are a couple of ways you could do it. If you were in a state which has limited liability companies, I would advise you to set up an LLC and convey the property by deed to the LLC. You and your brother could own the LLC on a 50/50 basis, and you would get all of the protections of a corporate veil. We could actually set up a Nevada LLC to hold the property even if the property is not located in Nevada. If you don?t want to form an LLC, you could prepare a deed from you as sole owner to you and your brother. You would probably want to take title as tenants in common.
Answer Applies to: Nevada
Replied: 4/29/2014
Dessy & Dessy, a Professional Corporation | Ronald D. Dessy
You should open an escrow for the purpose of obtaining a policy of title insurance on the property for the benefit of both of you concurrently with transferring the half interest and the related cash payment. In central and southern California this would typically be done through a title company.
Answer Applies to: California
Replied: 4/28/2014
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