Purchasing or Selling a Condominium
Purchasing or selling a condominium in New York is a complex financial transaction. If you do not have experience in real estate transactions, then it is important that you hire the services of a real estate attorney to guide you through it.
At Mekhtiyev Law Firm, we have over (insert number of years) years of experience helping condominium buyers and sellers with their legal needs, whether it pertains to the contract, due diligence, board application, or anything else. Our real estate attorneys can help you take the correct steps when purchasing a condo.
Contact us today to discuss how we can streamline your condominium transaction.
Condo Transactions in New York
The process of buying a condo consists of several steps; however, it is not that different from buying a house. The difference lies in the fact that a condo exists within a complex and involves you living in a residential community and working with a condo association.
A real estate attorney can facilitate the process by ensuring you take all the necessary steps to complete each step the right way. As an interested buyer, once you have chosen your home and made sure you are an eligible candidate for the condo, you will need to make a written offer to purchase the condo.
This is where a real estate attorney can help you.
Preparing the Deal Sheet and Due Diligence
Once you have made an offer with the terms of your purchase and it is accepted, the real estate broker normally prepares a deal sheet at this juncture.
A deal sheet consists of the contact information of the relevant parties, their attorneys, and the terms of the transaction. During this time, a real estate lawyer will conduct due diligence on the condominium building to ensure there are no financial or legal issues that will affect the purchase of the condo.
While the attorney is performing the due diligence, they will request the contract from the seller’s attorney and negotiate it to make sure it did not miss any important components of the deal and carries certain protection for the buyer.
Once the contract is negotiated, the attorney will send the completed version to the buyer with a brief contract summary covering the important points for the buyer to review and sign. Once the Contract has been finalized, The purchaser signs the contract, their attorney sends the partially executed contract to the seller for their signature, and also sends the funds for the down payment simultaneously.
Once the seller has signed the contract, the fully executed Contract will be returned to the buyer’s attorney’s office, along with the confirmation that the down payment has been deposited into the sellers attorneys escrow account.
Applying for the Mortgage
If you are financing the purchase of the condominium, you will need to apply for mortgage. The application process can take several weeks, so it is a good idea to apply as soon as the contract has been fully executed and delivered back to you.
Ordering the Title Report
Once the contract is signed, the next step is to order the title report. At Mekhtiyev Law, we use reputable companies to conduct searches on the land, buildings, parties and the units that you are purchasing.
The title companies must charge the same rates for title insurance since these are set by the law. In addition, the title company will perform due diligence to ensure that the condo is completely free from any debts or liens, mortgages, or other obstacles that can become a hindrance at the time of closing the deal.
Once you have purchased the Title Insurance policy from the company, it will keep you covered as long as you own the condo and protect you against all claims against the unit or demand you evacuate the premises.
A real estate lawyer can help oversee if the title to the property is clear. If it is not, you have the right to to receive the return of your down payment and not go through the purchase of the condo, assuming that language is included in the Contract and Riders.
Preparing the Board Application
If you have a realtor working with you, they will provide you with a condo board application package. However, if you do not, a real estate lawyer can assist you and acquire and prepare the necessary documents.
This application will ask you to fill all the necessary details of making the condo purchase, including the contact information of the relevant parties and their attorneys, the condo sales price, your employment history, and even a requirement for a credit check and references.
The condo board package is also associated with certain fees that can range from anywhere between hundreds to thousands of dollars.
In very rare cases, the condo board may not approve the transfer of unit to the interested buyer. If this happens, you will be refunded your deposit in full from the sellers attorney.
Preparing to Close
A real estate lawyer will remain in contact with the bank attorney who has the final say in the approval of the loan. Once the loan has been approved, this is known as “clear to close.”
During the clear to close process, the condo board will have approved the sale of the condo. After that, a real estate attorney will schedule a closing date along with the bank attorney, sellers attorney and management. The bank will also provide you with a final “Closing Disclosure” which you will need to acknowledge at least three days ahead of your closing date.
If you have any concerns during the process, your real estate lawyer will help you resolve them. However, in all probability, you will get your closing statements and check instructions right before the closing, most likely the day before. This is doubly true if you are financing and not buying outright with cash. In case of a loan, you will need to wait for the lender’s attorney to provide you with the net proceeds on the loan.
Your closing should take about two hours or a bit less if you are buying the condo with just cash. The buyer’s real estate lawyer will be there to explain all of the documents that you are signing, make the process smoother, along with the seller, the seller’s attorney, and the bank attorney, as well as the representative from the title company.
Remember that a real estate lawyer will be there to make your transaction is as hassle-free as possible. If you have any questions and concerns about a condo transaction, let us know so that we can address them.
How Can a Real Estate Attorney Help You in New York?
A real estate attorney will make sure that all your rights and interests are fairly represented during the condo-buying and selling process.
At Mekhtiyev Law, we have several years of experience in various commercial and residential real estate transactions. We can help you with:
- Reviewing, explaining, and negotiating the sale contract.
- Review the financial statement, offering plan, or budget, as well as the minutes of the board meeting to identify and quickly address any issues.
- Keeping in contact with the lending institution and going over the mortgage commitment.
- Making an estimate of the closing costs, including the special costs associated with the condo, title insurance, taxes, and government fees.
- Reviewing the title reports and the Building Department’s records and finding out if there are any outstanding real estate, water, or franchise taxes, liens, judgments, or municipal violations.
Representing you during the closing, as well as signing and preparing the closing statement package.
Schedule an Appointment with Mekhtiyev Law Today
New York has complex laws when it comes to condo transactions. It can be easy to become frustrated and make costly mistakes. Our lawyers can offer you a stress-free condo buying and selling experience. Call us at (212)203-6974 today to schedule a consultation appointment with us.
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