Navigating Purchasing Residential Property in New York: What Every Homebuyer Needs To Know

Buying a home in New York is an exciting, but sometimes complex process. With all its legal requirements and with the fast-paced real estate market, understanding the process before diving in is crucial. One key player in this process is your attorney, whose role cannot be overstated. Here is a step-by-step guide to purchasing a home in New York, highlighting why having an attorney by your side is essential to one of the most significant transactions we may make in our lives. 

Financial Preparation and Finding the Right Property

Before you begin looking into properties, it is best to get your finances in order. 

  • Assess your budget. Consider your income, savings, and any existing debts you may owe. 
  • Get pre-approved for a mortgage. Get a pre-approval letter from a lender, which will help you determine your price range. Some real estate agents may require one before showing you a home on the market. 

Making an Offer 

Once you have found the property you are interested in purchasing, you will typically make a monetary offer through your real estate agent. 

Contract Signing

Once the seller accepts your offer, a formal contract will be drafted. In New York State, the seller’s attorney will typically draft the contract. This contract will outline all of the terms and conditions of the sale, including the purchase price, deposit amount, and closing date. Also, as the seller, depending on the circumstances of the sale, you may be required to provide the potential buyer with a Property Condition Disclosure Statement pre-signing. Your attorney will assist you in properly completing this document. 

As the buyer, your attorney’s expertise truly shines here. Your attorney will review the contract 

and any additional riders to ensure that all terms of the agreement are fair to you and in your interest. Your attorney will also address and negotiate with the seller’s attorney any terms of the agreement that may be unfavorable to you or unclear. It is in your best interest to fully understand what you are agreeing to when you are buying your home, and your attorney will be there to help you fully understand the terms of the agreement and your obligations under it to facilitate the transaction.

Due Diligence

After the terms of the contract have been explained to you, clarified with the seller’s attorney, and negotiated, and after you have signed your contract, you will begin the “due diligence” period. This is the period of time in between the signing of the contract and the closing. Due diligence generally requires your attorney to research the property and its history to ensure you are in fact purchasing the property you are paying for, and that there are no additional claims or liens against the property that you, as the purchaser, should be aware of. 

Although subject to certain exceptions, New York is a “caveat emptor” state. This means that, as a buyer, you are assumed to have purchased the property at your own risk by purchasing it “as is”; essentially, any defects of the property are the responsibility of the buyer to bear. Therefore, to protect yourself as the buyer, you and your attorney must investigate the property before you complete your real estate transaction during this time period. 

Depending on the type of property you are purchasing or selling, as well as your specific needs, due diligence may require a different type of review of the property.

Financing

Typically, your contract will be conditioned on the buyer obtaining financing for the designated property. As the buyer, it is your responsibility to secure that financing from a lender before the closing date. 

Closing the Deal

The closing table represents the final, monumental step in your transaction. Assuming all contingencies of the purchase/ sale agreement are satisfied, the final papers are signed, closing costs are paid, and you get the keys to your new home. 

This new chapter you endeavor on should be made simple and straightforward. Your attorney will be there to guide you every step of the way, advocate for you, and comb through all necessary documents to get you to the finish line at that closing table. 

It is best not to handle this type of transaction on your own, in order to avoid any unexpected issues or disputes. This post should also not be construed as legal advice. Everyone’s needs are different, and therefore every transaction will have different requirements. Contact Sabrina Rabban, Esq. PLLC today to handle your real estate closing and determine your specific needs. You deserve personalized and competent representation to handle this significant transaction.

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