Full question:
My mother has been given life lease on a home that was purchased by her husband, who is now deceased and the home is in the children's name. When she decides to leave the residence, she has been advised that she has to sign off on the life lease. Is she entitled to any share of the proceeds in the sale of the house?
- Category: Real Property
- Date:
- State: New York
Answer:
It’s important to clarify whether the property is held as a "life estate" or a "life lease." You should review the deed or transferring document to determine the specific property interest held. In both cases, the holder of the property interest may be entitled to a share of the sale proceeds during their lifetime.
A life estate allows a person to enjoy the benefits of property ownership during their lifetime, with the property passing to another person after their death. This interest can be sold or transferred. A life lease, on the other hand, is typically for the lifetime of the tenant or for a specified term. Under a life lease, the tenant pays an entrance fee and monthly rent for maintenance and has exclusive use of their unit.
According to New York law (N.Y. Real Prop. Acts. § 967), a person with a life estate or other future interest in property is entitled to a portion of the sale proceeds. This ensures their rights and interests are protected.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.