An accepted offer on a house in New York signifies the beginning of the contract process, not the finish line. Because the transaction involves several legal milestones and financial obligations, failing to manage these phases properly can jeopardize your deposit or lead to the cancellation of the sale.
Key Steps Between Acceptance and Closing
- Review the deal sheet. Following an accepted offer, brokers distribute a document capturing the core agreement details, including the financial amount, the down payment, and the names of legal counsel representing each participant. This document serves as the foundation for the contract of sale, so verify that it accurately reflects what you negotiated.
- Schedule your home inspection. While not legally required, it is standard practice to inspect the property before signing a binding contract. A professional inspection can uncover issues with the roof, foundation, plumbing, electrical systems, or pest activity, which may allow you to negotiate repair credits or a price adjustment before you are legally committed to the purchase.
- Engage your attorney for contract review. Because state law provides no mandated window for legal assessment, your lawyer will scrutinize the seller's initial paperwork to safeguard your interests before you sign anything. They will negotiate details like contingencies, the list of included fixtures and appliances, and the rules for closing dates to ensure the contract aligns with your expectations.
- Submit the contract deposit. Customarily, the buyer provides a deposit equal to 10% of the purchase price upon signing the contract. This money is held in an escrow account, usually by the seller's attorney, and is applied toward the final purchase price at closing, unless a contract contingency fails and allows for its return.
- Pursue your mortgage commitment. If your purchase is financed, the contract will include a deadline for obtaining a written loan commitment. Submit your loan application promptly after execution of the contract, as the financial institution requires time to validate your situation and conduct an evaluation of the home to verify it justifies the requested borrowing.
- Analyze the title report. After execution, your lawyer instructs a title company to investigate the ownership records for the house, checking for items like outstanding debts, court rulings, or property usage rights. You should carefully read Schedule B of the report, which lists requirements that must be satisfied before closing, such as paying off existing mortgages or clearing building code violations.
- Perform a final walk-through. Shortly before the closing, often the day before or the morning of the meeting, you should visit the property again. This is your chance to confirm that the home is in the condition required by the contract, that any agreed-upon repairs are finished, and that all included appliances are functioning.
- Complete the closing. At the closing, you will sign the final loan and transfer documents, pay the remaining balance, and receive the deed. Talk to your lawyer ahead of time to verify the final amounts due and the accepted payment methods, helping you prevent errors with bank checks or electronic fund movements.
For the full detail, including the exceptions, contact our real estate attorneys in New York.
About the author
Peter Zinkovetsky is the Managing Partner of Avenue Law Firm. He earned a Bachelor of Business Administration Degree in Finance from Pace University and a Juris Doctor Degree from New York Law School, and is admitted in New York and in the US District Court for the Southern and Eastern Districts of New York. He has been named a Rising Star by Super Lawyers for seven consecutive years.
Avenue Law Firm
505 Park Ave #1201, New York, NY 10022 · (212) 729-4090.
Also on this blog: NYC Real Estate Closing Checklist: Steps for Sellers.
Related reading: Manhattan real estate attorney.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation.
No comments:
Post a Comment