NY Real Estate Lawyer - New York Real Estate Atorney

Law Offices of Michael W. Goldstein
299 Broadway, Suite 800, NY, NY 10007
Phone: (212) 571-6848 Fax: (212) 619-6743

Residential Real Estate...Co-op Apartments...Condominium Units...Commercial Real Estate...Mortgages...Leases

New York Real Estate Lawyer

FYI

The following information is provided as a courtesy to NYS Real Estate Lawyer visitors. This general information will not constitute an attorney/client relationship.

Real Estate Agreements

Did you know that very often controversies that result in litigation involving real estate transactions could have been avoided by a comprehensive, well drafted agreement at the inception or early stages of a real estate transaction?

I recommend that each client prepare a detailed list of all important terms that have been agreed upon. I believe that the attorney should review the list, and include legally enforceable language in the real estate agreement, reflecting the parties' understandings. It is my sincere belief that the extra care and attention that I devote to negotiating and drafting real estate agreements often saves my client the substantial expense and inconvenience of unnecessary litigation, or of a deal that fails to close.

Once you have agreed upon the price for the home you are buying or selling, the next step is usually to enter into a formal contract of sale. There are many extremely important legal and financial issues that should be addressed in the contract. It is my firm belief that negotiating the contract of sale is the most important phase of the transaction, since the contract will serve as the blueprint for the entire transaction. Furthermore, if something "goes wrong", which it often does, your legal rights will usually be determined by the terms of the contract.

The following are a few examples of issues that we believe should be included in the contract of sale:

Under what circumstances can the purchaser cancel the contract, and obtain a refund of the down payment?
What are the purchaser's legal rights and remedies if:
    - Seller can't deliver good title?
    - Seller doesn't have the required Certificate of Occupancy?
    - Seller is unable to deliver possession (vacate the premises) on time or prior to the expiration of purchaser's  mortgage loan commitment?
    - The plumbing, heating, electrical systems, air conditioning, appliances, etc. are not working at the time of closing?
   - Seller needs to close the transaction in order to obtain the money required to close title on his or her new home, but the seller needs some time after the closing in order to move? This will require purchaser to pay the entire balance of the purchase price, although purchaser will not be given possession of the property until several days later. Adequate provisions should be included in the contract of sale, in order to insure that the seller will move out promptly after the closing of title, and deliver possession of the property to the purchaser. Also, provisions should be included in the contract, in order to compensate purchaser, in the event that the condition of the premises upon transfer of possession, is no longer as represented in the contract of sale.
    - Purchaser is unable to secure a mortgage loan commitment within the time allotted in the contract of sale?
    - Purchaser's loan commitment is for an amount less than the amount applied for?
    - Purchaser unnecessarily delays the progress of the transaction, which causes the seller to incur substantial additional expense? (This is especially significant if the seller has already moved from the premises, and is therefore paying the expenses on two residences simultaneously.)

These potential problems can often be avoided or solved if they are properly addressed in the contract of sale, and followed through by experienced real estate attorneys.

Why does it usually take two to three months from the date the contract is signed, until the closing of title takes place?

Most real estate transactions are contingent upon the purchaser obtaining financing. It usually takes approximately 4 to 6 weeks for the purchaser's bank or mortgage company to issue a loan commitment. Furthermore, even after the loan commitment is issued, the bank's attorneys often require various additional items which the purchaser's attorney will usually obtain and provide. For houses and condos, purchaser's attorney will obtain a title search, including various departmental searches. For the sale of houses and other real estate, if the seller does not have a current survey, purchaser's attorney may attempt to locate a valid survey, or obtain a new survey. For co-op apartments, the purchaser's attorney will usually obtain a "co-op search". Furthermore, a detailed co-op application must be completed and submitted to the co-op Board of Directors, together with required financial documentation, character references, etc. Thereafter, an interview of the prospective purchaser will be conducted by the co-op's Board of Directors. If the purchaser and seller are both anxious to expedite the closing, it may be possible to shorten the time period from contract signing to closing.

Why am I paying so much money at the closing?

In a typical real estate transaction, both the seller and purchaser usually have various substantial expenses and adjustments. Considering the financial complexity of the real estate transaction, it is not surprising that most people don't understand the expenses that are payable at the closing. Your attorney should be happy to explain all of your expenses, and do everything possible to both verify that they are accurate, and to minimize or avoid those that can be negotiated or eliminated. Also, your attorney will provide a detailed closing statement, which should itemize and clearly explain each of your expenses. The closing statement should be in a format that is easy to understand, both now and in the future, so that you and your income tax preparer can easily obtain the desired financial information about your transaction.

What can I do if I'm not happy with the attorney who is handling my real estate transaction? Am I responsible for legal fees?

You have the right to replace your attorney. Effective January 1, 1998, the Appellate Division of the Supreme Court added Part 1210, which concerns client rights, to Title 22 of the Official Compilation of Codes, Rules and Regulations of the State of New York. Part 1210 states that a client is entitled to an attorney capable of handling his or her legal matter competently and diligently. The client is also entitled to be treated with courtesy and consideration at all times, to have his or her questions and concerns addressed in a prompt manner, and to have telephone calls returned promptly.

Part 1210 also states that if a client is not satisfied with how his or her legal matter is being handled, he or she has the right to withdraw from the attorney-client relationship at any time (although court approval may be required in some matters).

Regarding legal fees, your attorney may have a claim against you for the value of services rendered up to the time you dismiss your lawyer.

You can reach Michael W. Goldstein at (212) 571-6848, or click New York real estate lawyer to send an email.

Thank you for visiting

Home Mortgage Calculator Amortization Calculator Mortgage Loans Mortgage Lenders Real Estate Form FYI Real Estate Client Testimonials About Our Firm Disclaimer