Who Actually Prepares The Paperwork When I Am Selling My Condominium?
Customarily, the seller’s attorney prepares the contract of sale and sends it to the purchaser’s attorney for review and feedback. It usually takes about two to three business days before the terms are negotiated by the attorneys, finalized, and the contract is ready to be signed by the purchaser. As the purchaser, you should bring the contract deposit or down payment with you when you sign the contract of sale. Most of the time, a personal check is acceptable for the down payment, since there is plenty of time for it to clear in between the contract signing and the closing. You should also provide your attorney with details on the mortgages that you are planning on obtaining for the purchase, so this can be clearly outlined in the contract. How much are you borrowing? Are you obtaining a 30-year fixed mortgage or another type of mortgage? Is the mortgage a VA or FHA loan? These are important details that should be clear in the contract of sale to minimize your risk.
The purchaser’s title company will prepare a title report, which will be circulated to the attorneys for the purchaser, the seller, and the lender. This report will show the chain of title, outline any title issues such as liens on the property, search municipal records to ensure building department and other governmental records are acceptable, will provide property tax information, outline all covenants and restrictions filed in the land record, and identify any mortgages or home equity lines of credit that must be paid off prior to or at closing. The title report is a key document in the condominium transaction, just as with any sale of real property.
If you are a purchaser and you are obtaining a loan for your condo purchase, your lender will prepare the mortgage, note, and ancillary documents that will be signed at the closing before the lender will issue the loan proceeds. The bank attorney will bring these documents to the closing and oversee the execution of all loan documents.
If you are a seller of a condominium, your attorney will prepare the Deed of Sale and the transfer documents that get filed with the deed. These transfer documents include TP-584 and RP-5217. If you live in NYC, the form is TP-584-NYC. These forms should be drafted by your attorney. The process for preparing and filing the documents varies from location to location and New York City and Westchester County each have their own online document preparation and filing systems that must be used. These transfer documents are key documents that must be successfully filed to provide the Purchaser with a good title and to preserve the purchaser’s ownership rights.
What Key Information Should I Have Prepared To Share With The Buyer Of My Condominium?
The rule in New York is “caveat emptor” or “buyer beware”, which means that it is the buyer’s duty to obtain information related to the property that they are considering purchasing. Therefore, a seller should be careful when discussing the property with a potential buyer. From a legal perspective, the seller should not disclose any information to a potential buyer about the condition of the property. These disclosures could lead to disputes or issues as the sale progresses.
However, as the seller of the condo, you should be prepared to share the amount of common charges that you pay each month and whether or not there are any assessments that are currently being paid or have been announced that will take place in the future. You should also be prepared to share any warranties on any appliances and any sort of specifics of the building or the condo unit. Finally, as seller of a condo, you should be prepared to provide the purchaser with recent financial statements for the condo, rules, and regulations, and the condo declaration or offering plan.
It is important to note that the purchaser must be diligent in obtaining all the details for the condo that she is purchasing before signing the contract. Once the contract is signed, the parties are locked into the obligations in the contract and to move forward in good faith.
Do I Need The Condo Board’s Approval Before Finalizing A Sale?
Most condo boards must waive their right of first refusal before the parties can close on the condominium unit. This is the condo’s right to purchase the unit before it is sold to a third party. While most condominiums must approve the sale in this regard, usually the condo boards are not going to exercise their right of first refusal. It is very rare for condo boards to exercise this right and it is important to keep in mind that unlike co-op boards, condominium boards are not conducting intensive background checks, financial reviews, interviewing potential buyers, or obtaining any other economic details from the prospective buyer. However, this does vary from condo to condo and each one has its own practices when it comes to approving potential buyers.
What Options Do I Have If The Condo Board Does Not Approve of My Sale?
It is rare for a condo board to deny a purchase when the potential buyer is financially qualified and able to afford the unit, and all parties are willing and able to move forward with the sale. However, if your board does deny your sale, your options depend on several factors. An attorney would need to review the condominium declaration and rules and determine if you have any options to challenge that decision. This is an intensive analysis that would depend on the board’s reasons for their disapproval of the sale. Usually, as with a lot of other different areas of the law, the condo is prohibited from making any discriminatory decisions based on race, religion, sexual orientation, or gender. However, you should keep in mind that fighting and challenging condo or co-op boards is an uphill battle that is difficult, time consuming, and potentially very costly.
Where Will The Closing Of My Condo Sale Take Place?
The closing usually will take place at the bank attorney’s office if the purchaser is obtaining a loan. If there is no loan or the bank attorney does not have an office in the same county as where the property is located, the closing will usually take place at the seller’s attorney’s office. However, this is not always the case. When the closing date is set, the attorneys and parties are free to choose a location that is convenient for all parties keeping in mind that the bank attorney has first priority, then the seller’s attorney, and then the purchaser’s attorney.
What Happens At The Closing Of My Condominium Sale In New York?
A condo closing is very similar to closing on a house. The seller will deed the property to the purchaser and sign the deed at the closing. The purchaser or the lender will bring certified funds to the closing and the buyer will sign the mortgage, the note, and other documents required by the lender. The title company will send a title closer to pick up any payoffs on open mortgages and issue a title policy to the buyer and the buyer’s lender. The title company also picks up the filing fees and files the deed, the mortgage, and any other documents that need to be filed with the county clerk or the city register.
What Are Estimated Closing Costs Or Fees for a Condominium Sale?
When selling a condo, your main fees are going to be your real estate agent’s brokerage commission, the New York State transfer tax (and local transfer tax, if applicable, such as New York City transfer tax, Mount Vernon transfer tax, or Yonkers transfer tax), your legal fee to your attorney, and any payoffs of any open mortgages, judgments, or other liens. There also may be some condo fees that the condo imposes on the sale. Usually, the condo fees are not that significant, but it varies from condo to condo. If you are purchasing a condo, please keep in mind that you will pay your mortgage fees to your lender, which are taken out of the loan, your legal fees to your attorney, mortgage tax, and title insurance for both yourself and your lender. There are also going to be some other ancillary costs, such as recording fees, condominium fees, paying for the title searches, and other minor costs.
For more information on Preparing Paperwork For A Condo Sale, a consultation is your next best step. Get the information and legal answers you are seeking by calling (800) 619-3570 today.
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