Residential Purchase of a Home:
First, the purchasers must find a house that they want to buy. Then the purchasers and sellers must agree upon a price. The seller’s attorney will prepare the contract for all parties to sign. Do not sign a contract or give a down payment until your attorney has reviewed the papers. If you sign a document that has advserse consequences, you may have limited recourse on how to protect your interest. A fully executed contract is legally binding. Therefore, always have an attorney represent your rights in any real estate transaction.
Once there is a fully executed contract, the buyer will submit the contract to a mortgage company (unless you plan to pay for the house in all cash) to hopefully obtain a mortgage commitment. Any termite or other inspections should be ordered during the mortgage approval period. During the commitment process, a title search and survey of the property will also be ordered by a title company. This entire process can take several months. We will only be able to schedule a closing once all parties have reviewed the documents and reports and the bank gives clearance to close.
The Purchasers incur a number of expenses at closing. There are mortgage fees, lawyer fees, title company costs, New York State Mortgage Tax, deed recording fees, and additional costs depending on the contract.
Residential Sale of your Home:
The seller will usually have a real estate broker who will list your home on several websites, including Multiple Listing Service (MLS). A buyer will make an offer and negotiations will commence. If a purchase price is agreed to by all parties then the seller’s attorney will prepare a real estate contract. The contract will be mailed to the buyer’s attorney for the purchasers to sign and return with their deposit. The check received will be deposited into the seller’s attorney’s escrow account. The seller will be responsible for making any and all repairs agreed upon before closing. The seller should also obtain a written statement from any oil, propane, or utility companies that the seller will be requesting a refund for monies they have already paid.
The seller’s major expense will be satisfying the mortgage lien and equity lines of credit, if any. Seller is also responsible for real estate broker’s fee (3% – 6%), New York State transfer fee, recording fees for satisfaction of mortgage, title company fees, and any other agreed upon fees pursuant to the contract.
Purchasing or selling your home can be a stressful time because of all the required documents requested by the bank or title company in order to close. There are other additional considerations such moving to a different area. At the Law Officer of Karen A. Sferlazzo, my staff and I will make the transition as seamless as possible. We respond quickly to all issues in order to make the process move forward and close as soon as possible.
Please Contact Us if you have any questions and would like to schedule an appointment.