Can You Provide An Overview Of A Real Estate Transaction In New York?
The stages of a real estate transaction in New York the negotiation and signing of the contract of sale, the Purchaser obtaining financing, the Purchaser ordering a title report and the Seller clearing any title defects that need to be addressed, scheduling the closing, finalizing the closing adjustments, and attending the closing to consummate the deal.
A real estate transaction, when broken down to its simplest form, is closed when a seller provides the deed to a property and a purchaser provides the purchase money to the Seller. However, there are a lot of other things that need to be done prior to closing and there are also several other things happening at a closing. The title company is there to issue a title insurance policy to the mortgage lender and the Purchaser, if the purchaser is obtaining title insurance, which is always recommended. The title company is going to make sure that any recording fees and taxes are paid and the title company usually picks up the payoff of the seller’s mortgage, any property taxes that have to be paid, any reporting fees, and any escrow fees. If there is a mortgage, the bank attorney will require that the Purchaser sign various lender’s documents including the important mortgage and note that will be signed by the Purchaser.
The mortgage gets filed with the county clerk and it gives the lender a security interest in the property until it is paid off. If the purchaser pays the mortgage on time every month and in full, they should not have any issues with the terms of the mortgage. However, if a homeowner falls behind on his payments or is unable to meet their obligations, then the terms of the mortgage become very important and the lender has a lot of rights to protect their investment. The most extreme measure the lender can take is to start a foreclosure lawsuit and eventually sell the property at an auction.
From the Seller’s perspective, the most important element of a real estate transaction is that the seller will be paid the amount due at the closing. From the Purchaser’s perspective, the most important element of the real estate transaction is obtaining good title for the property they are purchasing. Once the Deed of Sale is filed with the county clerk, the Purchaser becomes the owner of record for that property subject to any mortgage that is filed with the county clerk.
What Are Closing Costs In A Real Estate Transaction?
Closing costs have to be looked at from a purchaser’s perspective and from a seller’s perspective. From a purchaser’s perspective, the main closing cost is the lender’s fees for the mortgage and those fees are taken out of the proceeds of the loan. In addition, mortgage tax that must be paid to New York State and some cities like New York City is a significant closing cost. The Purchaser also must pay recording fees for the mortgage and the deed to be recorded, the legal fee to the attorney, and a small title closer fee.
From the seller’s perspective, the main closing costs are the brokerage commission if there is a real estate agent involved in the transaction. In addition, the Seller must pay the New York State transfer tax (0.4% of the purchase price) and any other transfer tax imposed by a city such as New York City transfer tax, City of Yonkers transfer tax, and City of Mount Vernon tax. The Seller will also pay a legal fee to her attorney.
What Makes Buying or Selling A Co-op Unit In New York Different From Buying Or Selling Property?
When you buy a co-op, you are buying shares in a corporation. A co-op unit is technically not real property, where a deed is filed with the county clerk. Instead, the co-op corporation provides you with a share certificate, which state that you own a specific number of shares in the corporation along with a proprietary lease, which gives you the right to exclusively possess and live in that particular co-op unit. It is different than buying a condo or a house because you are buying shares of stock and the co-op transaction has many differences from a sale of other residential properties. If you are purchasing a co-op unit, it is important to keep in mind that you will need approval from the co-op board. The board has a lot of discretion when evaluating a potential buyer’s application – just as any New York corporation has discretion in making decisions when running the business.
For more information on Overview of A Real Estate Transaction In NY, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (800) 619-3570 today.
CALL NOW FOR A CONSULTATION
Toll Free: (800) 619-3570
New York City: (212) 786-7950
Westchester County: (914) 719-6970