It's an advantage to you for sure :
-The loan to value of your mortgage(if you go for a loan to purchase) will be low helping to possibly get a better mortgage deal and faster loan approval.
- You are starting with equity already built in and equity will be higher as the market inproves.
-I dont believe you will have a tax issue (but check with your accodunt)
For your parents:
If they have owned the house for many years they will have lower capital gain tax. (check with accountant)
Resale (City and State tax) lower that if selling at full value.
Sitting down with a professional tax accountant is best for your parents, if you need a mortage you should also consult with your bank or mortage broker.
Licensed Real Estate Broker
Urgo Realty, Inc.
36-51 Bell Boulevard Suite 202
Bayside, NY 11361