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!