Real Estate Law

The Process of Buying and Selling Properites: 

Fee Simple Properties

Residential and Commercial including Condominiums 

SELLER:

-Put Property on Market

-Have a potential Buyer make an offer

-Accept an offer

-Attorney steps in and completes the following

-Draft a Contract

-Negotiate the Contract (We Protect You)

-If condo, then submit Contract for First Right of                  Refusal and Comply with all other Rules

-Resolve any issues such as violations or incorrect                Deeds

-Clear any issues with Title Report (if applicable)

-Arrange for Payoff of existing loan or loans on                      property (if applicable)

-Create a Checklist

-Draft a new Deed

-Schedule Closing with all required parties

-Attend the Closing

-While at Closing

              -Make the Payoff to the current Mortgage                           Lender (if applicable)

              -Sign all Documents (the Deed) Transferring                       the Property

              -Pay Title Company for Transfer Taxes and                         other charges

              -Pay Broker (if applicable)

BUYER:

-Get Pre-approval for a Mortgage

-Find a Property you wish to Purchase

-Make an Offer to Seller

-Confirm Acceptance of Offer

-Attorney Steps in here and Completes the following

-Receive a Contract from Seller

-Negotiate Contract (add contingencies for Mortgage)

-Sign Multiple Copies of Contract (You are not “in Contract”      until both parties sign)

-Conduct Inspections (lead, mold, asbestos and general                  property inspections)

-Apply for your Mortgage and submit all necessary additional      paperwork (Timeliness is Essential)

-Order Title Report

-Get a New Survey (Make sure no irregularities on Survey)

-Review Title Report (Clear all issues with Title Report)

-Receive a Commitment Letter from Mortgage Company (if        applicable)

                -Dates are mandatory

-Schedule Closing

-Complete “TRID” Documents in advance of Closing

-Obtain “Net Funding”

-Determine Amount needed to bring to Closing by Buyer (if         applicable)

-Create the Checklist

-Attend Closing

-While at Closing

                -Review and Sign all Mortgage Documents

                -Check Deed (determine type of ownership)

                -Check Transfer Taxes

                -Pay Title Company

                                -Survey and other various charges

                                -Title Insurance

                                -Mortgage Taxes

                                -Filing of Deed

-You get keys during Closing and should Change Locks as              soon as possible

Cooperative Apartments

SELLER:

-Put Property on Market

-Have a potential Buyer make an offer

-Accept an offer

-Attorney Steps in Here

-Draft a Contract

-Negotiate the Contract (We Protect You)

-Arrange for Payoff of existing loan or loans on                     property (if applicable)

-Clear up any problems with lien search

-Create a Checklist

-Draft a new Deed

-Schedule the Closing

-While at Closing

            -Pay Flip Tax (if applicable)

            -Pay Coop Fees (move out fees and other                               administrative expenses)

            -Pay stock transfer tax

            -Make the Payoff to the current Mortgage                            Lender (if applicable)

            -Pay Transfer Taxes and other charges

            -Pay Broker (if applicable)

BUYER:

-Get Pre-approval for a Mortgage (if applicable)

-Find a Property you wish to Purchase

-Make an Offer to Seller

-Confirm Acceptance of Offer

-Attorney Steps in Here

-Receive a Contract from Seller

-Negotiate Contract (add contingencies for Mortgage)

-Sign Multiple Copies of Contract (You are not “in Contract”         until both parties sign)

-Conduct Inspections (lead, mold, asbestos and general                     property inspections)

-Apply for your Mortgage and submit all necessary additional         paperwork (Timeliness is Essential)

-Send in Application to Coop’s Board

-Submit any additional Paper requested by Board

-Typically have a Meeting with the Board

-Receive Approval from the Board

-Review Lien Search (Clear all issues with Lien Search)

-Receive a Commitment Letter from Mortgage Company (if           applicable)

                -Dates must be followed

-Schedule Closing

-Complete All Documents in advance of Closing

-Obtain “Net Funding”

-Determine Amount needed to bring to Closing by Buyer (if            applicable)

-Create the Checklist

-Attend Closing

-While at Closing

                -Sign all Mortgage Documents

                -Newly issued Stocks

                -Check and Sign Recognition Agreement and new                            propietary lease

                -Check Transfer Taxes

                -Pay Title Company

                             -Filing of Deed

                             -lien search

-Get Keys during Closing and Change Locks as soon as possible

The Closing Costs of Buying and Selling Properites: 

Fee Simple Properties (non-coops)

SELLER:

-Broker: Typically 4-6%

-Own Attorney: Consult your attorney

-Processing Fee: $450+

-NYC Transfer Tax:

-Residential:

       Up to $500,000 = 1%

               >$500,000 = 1.425%

-Commercial:

       Up to $500,000 = 1.425%

               >$500,000 = 2.625%

-NY State Transfer Tax: $4 per $1,000 of price

-Residential Deed Transfers= $50-150

-Commercial Deed Transfers = $150-250

-Pick-up/Payoff Fee: $250-$500

-Other Miscellaneous Fees: $200-1,000

-Miscellaneous Condominium Charges:

        Vary by building

         

     Note: For condominiums in new developments,              the Purchaser will pay costs normally paid by the          Seller. These include Seller attorney fees as well            as NY and NYC Transfer Taxes.

BUYER:

-Buyer’s Attorney: Consult your attorney

-Bank Fees: $350-$750

-Application Fee: $350

-Processing Fee: $330

-Points on the loan: Varies

-Appraisal Fee: $300-$1,500 (depending on sales price)

-Credit Report Fee: $10.10 single/$15.20 joint

-Bank Attorney: $650-$1,000

-Tax Escrows: 2 to 6 months

-Recording Fees: $250-$750

-Fee Title Insurance: Amounts vary depends on your property         (typically 1,500-2,500)

-Mortgage Title Insurance: Amounts vary depends on                       property (typically 1,000-2,000)

-Municipal Search: $350-$500

-If Condo: maintenance in advance 1-3 months

-Mansion Tax: 1% of entire purchase where price is                            $1,000,000 or more.

-NYC Mortgage Tax (paid by borrower):

          a. Mortgage less than $500,000 = 1.80%

          b. Mortgage > $500,000 for 1-3 family residential                                     dwelling = 1.925%

          c. Mortgage on all other property over $500,000.00 =                               2.80%

 

            Note: For condominiums in new developments, the                   Purchaser will pay costs normally paid by the Seller.               These include Seller attorney fees as well as NY and               NYC Transfer Taxes.

 

*******A conservative estimate for a Purchaser would be to expect Closing Costs to be  5% of the Sales Price.

Closing Costs for Coops

SELLER:

-Broker: Typically 4-6%

-Own Attorney: Consult your attorney

-Co-op Attorney: $450+

-Flip Tax: Typically 1% to 3% of price (if applicable)

-Stock Transfer Tax: $0.05 per share

-Move-out Deposit/Fee: Varies by building

-NYC Transfer Tax:

      -Residential:

               -Up to $500,000 = 1%

               - > $500,000 = 1.425%

     -Commercial:

               -Up to $500,000 = 1.425%

               - >$500,000 = 2.625%

-NY State Transfer Tax: $4 per $1,000 of price

-UCC-3 Filing Fee: $100

-Miscellaneous Coop Charges: Vary by building

              - move out fee 

              - any other fees ex: admin

BUYER:

-MORTGAGE CLOSING COSTS: admin fees, points and all            other expenses

-Buyer’s Attorney: Consult your attorney

-Bank Fees: $350-$750

-Application Fee: $350

-Processing Fee: $330

-Appraisal Fee: $300-$1,500 (depending on sales price)

-Credit Report Fee: $10.10 single/$15.20 joint

-Bank Attorney: $650-$1,000

-Coop Attorney: 250-1,000

-Lien Search: $250-$500

-Mansion Tax: 1% of entire purchase price where price is                       $1,000,000 or more.

 

ADDITIONAL REAL ESTATE EXPENSES

-Miscellaneous Co-op Charges: Vary by building Move in                      deposit and other fees

-Recognition Agreement Fee: $200+

-Maintenance Adjustment: Pro-rated for the month of closing               and more

-Short Term Interest: Equal to interest for balance of month in               which you close

 

*********A Conservative Purchaser should anticipate closing costs to be 3% of Sales Price on a Coop

Selling or Purchasing a property is a very complex and complicated process.  

 

Call now for an experienced attorney to give you the information you need to make it as smooth and easy as it should be!  

124 Willoughby Avenue, Suite 1B - Brooklyn, N.Y. 11205 -

P: (718) - 938 - 9732 -

.....................................................................................................................................................................................................................................................

**********DISCLAIMER: All writings contained on this website are meant to be informational and educational ONLY.  DO NOT rely on any information contained in this site as legal, medical or tax advice.  This website and any communication through this website does not create an attorney-client relationship.  This website is merely intended to give the viewer a very basic overview and understanding of the concepts.  This information cannot and should not be relied on for legal advice.  Legal Matters are extremely complex and complicated and therefore you should contact an attorney.   **"Free consultation" means: An initial consultation up to 15 minutes long will be provided at no cost.

Serving All of NEW YORK CITY

Call Now and speak with an Actual Attorney

This is an Attorney Advertising