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!