If you are selling a home in New York State, you will need to hire not only a real estate agent to market and negotiate the offers of the property, but also an attorney to prepare the sales contract and represent it at closing. Lawyers in our extensive network are ready to answer your question. While the steps required to sell a home are similar, regardless of where in the United States you live, New York's real estate laws and practices are unique in many ways. Familiarizing yourself with the process from the beginning will help you avoid problems later on.
Here's an overview, from working with a real estate agent to making legally required disclosures to closing the deal on your New York property. Most people who sell their home in New York list it for sale with a licensed real estate agent or broker. A good agent will help you prepare and price your property, market it to potential buyers, and negotiate with buyers until closing. Selling your home for sale by the landlord or the FSBO is also a possibility, a lack of experience and understanding regarding home prices, advertising strategies, and the overall process can put you at a disadvantage.
You may face unexpected problems and ultimately can't get the best price for your home. For more information on working with an agent, see the New York State guide, Do you want to buy, sell or rent a property in New York State? Know Your Rights. Once you find a real estate agent you want to work with, you'll sign a “listing agreement,” which will give the agent the right to market and manage the sale of your home. Most agents use standard forms created by their state or local realtor association, such as the New York State Association of REALTORS.
Listing agreements in New York cover the following terms. New York law requires real estate agents to inform potential sellers they work with about the nature of their relationship and the respective rights and obligations. See New York State Licensing Division License Disclosure Form for Buyer. New York State Law (New York Real Estate Act) § 46 requires sellers to complete and provide buyers with a full Property Status Disclosure Statement, which contains information about the property and describes its status within the limits of the seller's knowledge.
Certain types of properties (such as foreclosures or newly built homes) are exempt from state disclosure rules. In addition to state standards, if your home was built before 1978, you must comply with federal Title X disclosure regulations regarding lead-based paint and hazards. See the Lead Disclosure section of the EPA website. If the seller says yes (usually done orally, not in writing), the buyer can conduct inspections of the structure and look for possible pest infestations, and change the bid price accordingly or request repairs.
Please note that the buyer and seller do not yet have a contract or are required to complete the transaction. The next step, with the help of the seller's attorney, is usually for both parties to draft, negotiate and sign a final contract. The buyer will then pay a percentage of the purchase price (called guarantee money in most states, but a down payment in New York). After that, the New York contract normally requires a 72-hour attorney review period.
During this time, the buyer and seller can propose and accept any last changes. If someone's lawyer detects a cause to move away from the agreement, the buyer or seller can do so within these 72 hours. The final agreement will contain all the terms of the sale, such as the agreed price, contingencies (conditions that must be met before the sale can be closed), the dispute resolution method and the closing date. See the New York State Bar Association Residential Sale Agreement for a sample.
The security deposit is the period of time between signing the purchase agreement and closing the home. The seller's attorney will act as the escrow or title agent, supervise the process, prepare title reports as a preliminary step to obtaining title insurance, work to resolve issues such as property liens, prepare closing documents, etc. The buyer typically has a lot more to do during this period of time than the seller. At the close of the escrow, the buyer will need to finalize the financing, eliminate all buyer contingencies, have the property evaluated (usually required by mortgage lenders), and obtain title insurance, usually within the established deadlines.
As a seller, you'll need to cooperate to make the property available for inspections, appraisals and, ultimately, a final tour. You will also need to take action and eliminate any contingencies you have added to the purchase contract. If something goes wrong; for example, the buyer can't get financing after all, and this was the basis of a contingency; the buyer could be entitled to withdraw from the agreement without losing the down payment. By the scheduled closing day, you and the buyer should have met all the terms of the purchase agreement.
The closing itself is typically an in-person meeting of the parties, their attorneys, a title insurance company representative, and attorneys representing the buyer's and seller's mortgage lenders. You (the seller) can skip closing by giving your lawyer a signed power of attorney to handle the transaction. During the course of the closing, the buyer will have to pay you the purchase price and you must provide the buyer with a deed and other transfer documents and clear title to the house or condominium. You pay all outstanding loans on your property and pay commissions to real estate agents (based on your listing agreement).
Once the new deed showing the buyer's name has been registered with a local government office (by the lawyer or title company), the house is officially yours. Unlike many states, New York requires sellers to involve an attorney in the home sale transaction. Law § 48, which fulfills the tasks described above. You may also need the help of an attorney to draft a lease agreement if you plan to re-rent the property for an extended period after closing, or if problems appear on the title report, such as a lien on your property.
Find an Experienced Real Estate Lawyer in New York. The above results do not guarantee a similar outcome and Martindale-Hubbell cannot be held responsible for the content or accuracy of any review. For more information on Martindale-Hubbell customer review ratings, please visit our customer review page. New York law requires all sellers as is to disclose any known issues.
Otherwise, the seller must pay a credit to the buyer. If you do not want to make such disclosures, then you can pay a credit without the disclosure. The fee will protect you from liability in most cases. However, this liability protection does not always apply; for example, if the buyer has a special relationship of trust with the seller, it will not protect the seller.
A lawyer can provide clarity on these issues. Sellers are not required to obtain a pre-listing inspection or make any attempt to discover any issues that they were not aware of. However, an inspection could be useful because it could protect you from some liabilities later on. If you work with a real estate agent, they can help you assess if they are worth pursuing.
You might also want to consider doing some low-cost repairs because they can have a significant effect on the final sale price of your home. Information on Data Security Breaches Understanding Recent Changes to New York Gun Laws Immigration Services Fraud Initiative Land Bank Office of Community Revitalization Office of Special Investigation Source of Income Discrimination If you have any questions, it is it is advisable to consult a lawyer to avoid future legal problems. To find a real estate lawyer, contact your local bar association, which can offer local referral services. You can also ask your friends or your real estate agent for recommendations.
When you have multiple names, call each of them for information on rates and your level of experience. A preliminary title report gives you the opportunity to review any impediments that prevent you from passing a clear title. The most common form of lien on property is a mortgage. While all mortgages are liens, not all liens are mortgages.
Other types of liens are commonly found and part of the real estate attorney's job is to verify outstanding liens at the time a real estate transaction is closed. These include sentencing liens resulting from a court judgment against landlords, mechanic's liens resulting from recent property improvements, unpaid tax liens, and liens for unpaid municipal utilities such as water and sewer. Office of Real Estate Resource Center The Attorney General's Office website is provided in English. However, the Google Translate option can help you read it in other languages.
Google Translate can't translate all types of documents and may not give you an exact translation all the time. Anyone who relies on information obtained from Google Translate does so at their own risk. You can also find a copy of this disclaimer on our disclaimer page. Since FSBO homes tend to sell for less money, you can pocket more profits if you work with a low-commission real estate agent who can sell your home for a higher price.
While prices and services vary, discount real estate companies will help you sell your home for less than a traditional real estate agent. . .