SELLING A PROPERTY

 

Selling a property in New York can be rather complicated, both legally and logistically .  After you've done the marketing whether through a broker, Multiple Listing Service, or on your own and you've found a purchaser, your next step should be to verbally accept an offer. 

 

STEP 1 – LOCATE A PURCHASER & ACCEPT THE PURCHASER’S OFFER

 

The first step in any real estate transaction is to find a Purchaser. A word of caution -- do not put anything in writing, as this may, unintentionally, create a binding contract. Additionaly, a real estate agent may request that you execute a "letter of intent", "Purchasers' offer” or even a “contract.”  Do not do so without consulting with our office.  Have your realtor put together a "Deal Sheet" to be distributed amongst the parties and forward to our office so that we can conference with you and draft a contract of sale.

 

STEP 2 – HIRE AN EXPERIENCED ATTORNEY

 

In New York, purchasers and sellers of real estate almost always hire a lawyer.  The attorneys are behooved to guide the parties, delineate deal specifics, provide and protect their clients from risks, and generally handle the all legal paperwork and closing.  When researching attorneys, ensure your counsels' qualifications.  Jonathan Koren, Esq. has personally and successfully handled  thousands of real estate closings from residential refinances to large commercial multi million dollar transactions.

 

STEP 3 – PURCHASERS DUE DILIGENCE

 

If your purchaser chooses to conduct a homeowner’s inspection, please grant the inspector access.  After the inspection is conducted, the purchaser may find certain faults with the property and may ask for you to make certain repairs prior to closing.  It is up to you and the purchaser to decide what repairs you are agreeable to make.  You can always consult with our office as well as to suggestions on certain repairs.  Over 2500 closings, this office has lots of experience dealing with purchasers requests.

 

STEP 4 – SIGN THE CONTRACT

Once retained, you or your real estate agent shall provide us with all information necessary via a deal sheet to prepare the Contract of Sale to forward the contract to the purchaser’s attorney.

 

The purchasers'' attorney then reviews the contract and may attempt to renegotiate or add terms.  We discuss the terms with you and assuming all parties are in agreement, the purchaser signs four (4) copies of the Contract of Sale and mails the contracts, along with the downpayment check to our office.  Upon receipt of the contract, we schedule an appointment for you to sign.  Once you sign the contracts, the downpayment will be deposited into our IOLA account. We then mail two (2) fully executed contracts back to the purchasers' attorney.

 

STEP 5 – WAITING PERIOD

 

After the purchasers' attorney receives the fully executed contract, the purchaser must fulfill the following conditions:

• The Purchasers' Attorney will order a title search on the property and seller to ensure that title is clean, free from liens and encumbrances.  A title search takes about 5-10 business days.  If there are actual clouds on title/ownership, the seller must work to clear the title problems.  This may take more time, depending on the severity of the issues.

• In event purchaser is obtaining financing, the purchaser must submit a loan application in good faith to his lender.  Generally, it takes about 45-60 for a lender to clear a loan for closing.

• If you are selling a Co-op, the purchaser must apply to the Co-op Board after getting approval for financing.  The Board can take up to 30 more days to approve or deny an applicant as they generally meet once a month.

• You move your belongings off the Premises (or get ready to do so) to provide the property in “vacant and broom clean” condition.

• In the event your contract provides for remedial work to the premises or removal of violations, please ensure you are working diligently with your contractor and/or expediter to comply with contract terms.   

 

Assuming the title is clean, the purchaser secured firm financing and is approved by the Board (if it is a co-op sale) and you are about to move out from the premises, the firm can schedule a closing.  Below are the average time periods it takes to close.  

 

• Sale with Purchaser obtaining financing: House: 60 days

• Condo: 60 days

• Co-op: 90 days

• Cash Sale: House: 5 to 20 days

• Cash Sale: Condo: 25 days

• Cash Sale: Coop: 45 days

 

STEP 6 – SCHEDULING A CLOSING

 

Once the Purchaser and the Purchaser’s bank are ready to close, they can schedule a closing.  You should plan ahead of time to verify when you will be able to move out of the premises to deliver the property vacant at closing.

 

STEP 7 – MOVE OUT

 

Unless otherwise agreed in the contract, the premises are to be delivered “vacant” and “broom clean” at closing.  This means that all occupants must be off the premises and all personal belongings and furniture are removed.  Be careful not to damage the premises during move out.

 

STEP 8 – ATTEND THE CLOSING

 

At closing, the deed conveying ownership/title to the property and keys (Stock and proprietary Lease for a Co-op) are exchanged for the balance of the contract sales price. The following individuals usually attend the closing: (1) Purchaser, (2) Seller, (3) Buyer’s Counsel, (4) Seller’s Counsel, (5) Purchasers' Bank Attorney, (6) Seller’s Bank’s attorney (in co-op transactions only), (7) Title Closer (non co-op transactions only), (8) all real estate brokers, and (9) Managing Agent (in co-op transactions only).  Purchasers and Seller counsel generally review closing adjustments (real estate tax, water/sewer bills, rents, etc.), ensure all monies are paid to appropriate parties, and ensure all contract terms are complied with.  Both attorney will agree on these sums and provide a closing statement detailing all adjustments, closing expenses, and a chart of disbursments. 

 

STEP 9 -- POST CLOSING

 

After closing, documents evidencing title/ownership to the property are recorded timely at the appropriate county clerk (on non-co-op transactions).  Additionally, both parties are obligated to switch over utility accounts as of the date of closing.  Please ask your utility provider to rate your bill based on an actual final reading to avoid estimated use appearing on your bill.  In the event of a post closing escrow for possession or repairs, your attorney will follow up with you to ensure timely execution and delivery of the property in vacant and clean condition.  Additionally, we retain copies of all files in case you request them for tax season or future needs.