Whether you are first time buyer or an experienced investor, the Niyazov Law Group, P.C. can help you navigate through the maze of purchasing commercial and residential real estate in New York.
Our knowledgeable staff thoroughly explains the closing process to you and keeps you fully informed throughout the transaction from signing of the contract to the actual closing.
When purchasing a house, it is crucial to understand that, with the exception of certain representations, the purchaser is buying a home in AS IS condition. As such, it is important to conduct a full house inspection, including a termite inspection, preferably prior to executing the Contract of Sale. And if you are obtaining financing it is important to work with a knowledgeable lender or mortgage professional as you only usually get 30-45 days to obtain a mortgage. We have a network of mortgage professionals that we can recommend to you. We will guide you through the entire process, until the successful closing.
When you purchase a co-op, you are actually buying an interest in the corporation that owns the property and you receive a stock certificate representing your ownership in such corporation. You become a shareholder of the corporation and have a proprietary lease over the apartment. Like any corporation, co-op buildings are run by an elected board of directors who determines the rules and regulations of the property.
Before your purchase of a co-op, it is imperative that you have us review the financial statements of the corporation and the related minutes to determine the financial stability of the building. In addition, co-op buildings may have restrictions on subleases and resales, an unfriendly pet policy, and have owner’s transfer fees, which may affect your decision on whether to purchase a unit in a particular co-op building.
The purchase of a condominium is unique in that a condominium has similarities and differences with the purchase of a cooperative apartment or a house. With a condominium, you are actually purchasing real estate, unlike with a cooperative unit, where you are purchasing interest in the corporation that owns the property. Condominium associations do, however, have a board of directors that makes decisions regarding rules and regulations of the association, as well as financial decisions of the company.
A thorough review of house rules, financial statements and bylaws is a key when considering purchasing a condominium.
With commercial closings, the key is to conduct a thorough due diligence of the subject property. As such, (i) we review and advise on engineer reports and environmental studies, (ii) review the rent rolls and applicable leases, and send collateral estoppels letters to confirm the information in the leases, (iii) conduct physical inspections to determine the legality of all structures; and (iv) review the title report, survey and prior policies.
In a typical transaction, the property owner is taxed on any gain realized from the sale. However, through a Section 1031 Exchange, the tax on the gain is deferred until some future date.
Section 1031 of the Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a property owner trades one or more relinquished properties for one or more replacement properties of “like-kind”, while deferring the payment of federal income taxes and some state taxes on the transaction.
The theory behind Section 1031 is that when a property owner has reinvested the sale proceeds into another property, the economic gain has not been realized in a way that generates funds to pay any tax. In other words, the taxpayer’s investment is still the same, only the form has changed (e.g. vacant land exchanged for apartment building). Therefore, it would be unfair to force the taxpayer to pay tax on a “paper” gain.
The like-kind exchange under Section 1031 is tax-deferred, not tax-free. When the replacement property is ultimately sold (not as part of another exchange), the original deferred gain, plus any additional gain realized since the purchase of the replacement property, is subject to tax.
Please contact us to help you identify ways to save on any realized gains by properly structuring a sale or purchase as a 1031 exchange.
Please contact our office as soon as you can as time may not be on your side.