What Is A Sale Contingency In New York?
In New York, a sale contingency is a term in the Contract of Sale that allows the Purchaser to make the purchase contingent on the sale of another property. Most Sellers are going to be hesitant to agree to a sale contingency, especially in a Seller’s market. However, depending on the circumstances, sometimes the Seller will allow this contingency to be written into the Contract of Sale. In this case, the Purchaser would be entitled to sell their existing property before being obligated to close on the purchase. If a Purchaser cannot in good faith sell their current property under the terms specified in the contract, then a Purchaser would be able to cancel and receive a return of their down payment.
Because these types of arrangements are rare, often people will wait until they are in contract to sell a property before making an offer to purchase the next property. This affords a degree of protection since you will have a Buyer who is contractually obligated to make a good faith effort to purchase your property and a down payment to help protect your interests if your Purchaser defaults .
How Does The Inspection Phase Work When It Comes To Buying Or Selling A Home In New York?
In New York, usually, after there is an accepted offer, the Buyer will arrange to conduct their inspections. After the inspections are conducted, the home inspector will provide a detailed report to the potential Purchasers outlining various aspects of the condition of the home. The home inspector will evaluate the structural condition of the home. The inspector will look at the heating, electrical, and plumbing systems and provide an opinion and inspect the roof and the basement. Your home inspector should communicate any concerns regarding the condition of the property and sometimes they may recommend additional testing. For example, if there is a sign that there may be wood destroying insects present, the inspector may recommend that you obtain a Wood Destroying Insect Inspection to determine the extent of the issue and what must be done to remediate the issue.
In Connecticut and upstate New York, contracts are often signed and will contain inspection contingencies where the Buyer will have an opportunity to conduct inspections and cancel the Contract before the deadline specified in the contract. These inspection contingencies are less common in New York City, Westchester County, and Long Island.
At this point, the Purchaser and the Seller will either agree on a price reduction or closing credit if there are significant issues that are raised in the inspection report. Sometimes, the Seller will agree to make specified repairs before the closing and these details are added to the Contract of Sale. These agreed upon repairs will be inspected prior to the closing to make sure that the Seller has fulfilled the repairs as outlined in the contract.
For more information on Sale Contingency In A Real Estate Transaction, 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