What is the best agreement to execute to purchase a property in the future that we will be making all payments on until then?

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What is the best agreement to execute to purchase a property in the future that we will be making all payments on until then?

My mother-in-law is purchasing the home next door to her current home and she is taking a mortgage. My husband and I are paying all closing costs, mortgage payments, insurance and taxes. We’re also making all repairs and improvements. Our intention is to obtain a mortgage in 5 years.

Asked on February 12, 2017 under Real Estate Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You and she can enter into an agreement whereby if you make the payments you describe for the specified period of time, she will then sell you the property at the end of that period for an agreed-upon price: either a price you agree to now, or the then-fair market value (e.g to be determined by appraisal or other mutually agreed upon method) less the value of the payments you make in the interim (i.e. you will be credited those payments). As long as it is in writing, such an agreement is enforceable.


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