We represent people who wish to purchase or sell their house, condominium, or cooperative apartment in New York.
Our services include the entire process from Contract of Sale to personal representation at Closing. This includes drafting and/or reviewing the contract of sale, title reports, and all necessary work in preparation for closing.
Frequently Asked questions:
Who pays the Closing Costs:
The seller typically pays transfer taxes in connection with the sale of his property.
The Purchaser pays the mortgage tax if he takes out a mortgage as well as the title fees.
What is the Process of Closing on a Property:
The Seller’s attorney prepares the Contract of Sale and forwards it to the purchaser’s attorney. The purchaser’s attorney reviews the contract and negotiates the terms with the Seller’s attorney. The purchaser signs four originals and provides a downpayment check in the amount requested in the contract. His attorney then forwards it to the Seller’s attorney, who then signs it and sends two(2) originals to the purchaser’s attorney. The purchaser is given one original contract. He uses that contract to submit with the board application and mortgage application.
What is the Due Diligence Period?
The closing typically takes place 2-3 months after the contract of sale is signed by both seller and purchaser. During that period, called the due diligence period, the purchaser submits an application and all the required documents to the board if the property is a co-op or condominium as well as for the mortgage if he is planning to take out financing. It is crucial that purchaser’s attorney makes sure that the contract contains a mortgage contingency provision, which states that the purchaser has a certain amount of days to apply for a mortgage in good faith, and if he does so and is unable to obtain one, he may cancel the contract. This protects the purchaser from proceeding with the transaction if he is unable to obtain a mortgage after applying to at least one financial institution in good faith. During this 2-3 month period, the seller's attorney reviews the title report, and clears any objections to title so that he may provide the Purchaser with clean title at closing. It is important that the parties have a competent real estate attorney who can represent them through this process.
What is the Board application for Co-ops and Condos and what is the boards right of rejection?
In a Coop, once the board receives the purchaser’s application, they will review it, and can opt to have the prospective purchase come in for an interview. They are allowed to reject the prospective purchase for any reason other than discrimination based on sex, religion, race, ethnicity, etc., without stating the reason. In a Condominium, the board can only reject the prospective purchaser if they purchase this unit themselves from the Seller at the contract price. This is called their right of first refusal.
What is the Closing process?
At the closing, the Seller transfers the deed and keys to the Purchaser, and Purchaser pays the remaining funds (contract price less downpayment at contract signing) to the Seller. Said funds must be certified official bank checks, not personal checks. The deed is then taken by the title company for recording with the Count y Clerk’s office. If a co-op is involved, the co-op attorney gives the purchaser stock and proprietary lease to the unit.
What are the differences between Co-ops and Condominiums?
A condominium is ownership of real property, similar to that of a house. The purchaser is given a deed at closing. He pays real property tax to the Department of Finance. A condominium is personalty. The purchaser is given a stock certificate and a proprietary lease. He does not actually own the unit, but rather owns shares in the cooperative housing entity.
If you are planning to buy or sell a home, condo, or co-op, please call us to discuss how one of our experienced attorneys can help make your sale or purchase a success.
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