Purchasing or Selling a Single and Multi-Family Homes
Selling or buying a home can be the single most significant and expensive transaction that you will experience in your life. Whether you are interested in a single-family home or a multi-family home, purchasing or selling a residential property involves having extensive knowledge of real estate law in order to be prepared for specific legal issues that are absent in other forms of transaction.
At Mekhtiyev Law Firm, our team of qualified and trained real estate attorneys can help you to navigate the home buying or selling process to ensure the transaction goes smoothly.
Purchasing a Single or Multi-Family Home
Purchasing a single or multi-family home can be complex and involve various legalities revolving around the property such as title issues, various legal documentation, financial conditions, tax implications and more. At Mekhtiyev Law, we can help you:
- Prepare important documentation such as the Purchase Agreement, Riders, Affidavits, etc.
- Review all documents, title reports, and complete extensive due diligence
- Make sure the property taxes are accurate and have been paid
- Ensure compliance with financial and legal conditions
Selling a Single or Multi-Family Home
As real estate attorneys, we can help to ensure that the sale of your home goes as smoothly as possible. We offer various services, including:
- Preparing and assessing real estate legal documents, including but limited to the Contract of Sale, Riders, due diligence documents, etc.
- Reviewing the Deal Sheet and ensuring that the essential terms are included in the contract documents.
- Evaluating legal consequences and the financial conditions of the property, as well as dealing with any other related issues that may or may not arise.
As experienced real estate attorneys, we are familiar with common as well as rare issues that arise during real estate transactions in New York. We also understand the roles, obligations and responsibilities of each of the parties involved in the closing process, including the buyer, seller, realtor, home inspector, lender, mortgage broker, title company and management company. Our experienced attorneys will make sure that each party plays their role to make the closing process as efficient as possible.
Laws Governing Real Estate Buying and Selling in New York
When it comes to real estate, each state has its own specific laws, rules and regulations. In New York, for instance, a lawyer is required to perform a title search, prepare your closing documents, and to do anything necessary in order to close the transaction.
Purchasing or selling a home in New York is governed by several different laws. For example, as the seller of a single-family or multi-family home, it is obligatory that you disclose the defects in your property in an affidavit/statement prior to signing the contract, or in the alternative, provide the purchaser with a $500.00 Property Condition Disclosure Credit in lieu of providing the affidavit.
According to the New York Property Condition Disclosure Act, sellers are required to fill a standard disclosure statement and send it to the purchaser prior to the signing of the final contract. However, most sellers elect to not fill out this form and give the $500 credit at closing.
However, keep in mind that even though a seller gives the credit to the purchaser, this does not relieve the seller from the liability of not disclosing, and they may still be liable for any damages or losses sustained by the purchaser as a result of the non-disclosure. This means that the seller may have to pay for the actual damages sustained by the buyer, which can run into several thousands of dollars.
Why You Need a Real Estate Lawyer for Purchasing or Selling a Home in New York
As experienced and qualified real estate lawyers, we can help you avoid the various pitfalls that come with home purchase and sale.
Get a Consultation From Us
Even if you do not need a lawyer during the negotiation process, both buyers and sellers should consider consulting with a real estate attorney to get the answers to some legal questions, like the mortgage contingency period implications, tax implications and general timeline in order to ascertain what a real estate transaction actually entails.
For the seller, tax should be one of their priorities. For example, if the seller makes a substantial profit when selling their home, the tax consequences will be quite significant resulting from the sellers capital gains. A real estate lawyer can advise them to take advantage of this since it will allow them to exclude capital gains in some situations. However, the attorney would still advise that the seller discuss these types of tax implications with their accountant.
The Contract of Sale
The Contract of Sale is one of, if not the most critical document in the transaction. Although standard printed form contracts are normally utilized in the industry, a real estate lawyer can help navigate all parties to help understand the essential terms and make any revisions if necessary, with mutual consent from both buyer and seller.
A Contract of Sale may consist of several issues that need to be addressed:
- If there were any renovations made to the property, were they were completed lawfully?
- If the buyer wants to convert the property after closing, will they be able to do it lawfully?
- What happens if a home inspector finds toxic materials like lead, termites or asbestos in your home?
- What happens if the property contains hazardous waste?
- What happens if the closing does not occur?
- What would happen to the down payment and would it be held in escrow by a lawyer?
- How will the buyer pay the purchase price and is the closing subject to the buyer getting financing?
- What happens if you cannot get your loan in time for closing date on the contract?
- What happens if there is a coop or condo board and the purchaser gets denied by the board?
Once the Contract of Sale has been fully executed by both purchaser and seller, the next step is to establish the state of the seller’s title to the home. Typically, a title search can be ordered from a reputable title insurance company licensed in NY. However, in some states, title insurance has different policies and requirements. In such events, a real estate lawyer can review the title status and can advise accordingly.
If you are in a state where title insurance is typical, a real estate lawyer can help review the title searches and help you understand the exceptions under the insurance. They will also ascertain whether the legal description is correct and if there are any issues with prior or adjoining owners.
If the previous owner has imposed any agreements, easements, or restrictions, a lawyer can explain its impact and whether there are any legalities that will hinder your ability to sell the property.
In addition, a title search does not reveal whether the seller or buyer have any existing or potential zoning implications. A real estate attorney can explain whether the zoning prohibits multi-family homes or whether any improvements to the home will violate the applicable zoning ordinance.
The closing is one of the most important stages during the transaction. It is also complicated and confusing. A lawyer will ensure that your deed and closing papers are accurately prepared for the closing. During the closing, the title of the property will be transferred to the buyer who will pay the remainder of the purchase price at the closing.
A closing statement is also prepared before the closing to signify the adjustments, fees, debits and credits to both the buyer and seller. There also be disputes that arise regarding the adjustments of various costs like taxes and other carrying costs for the property. In this case, the services of an attorney can be invaluable in explaining the nature, amount, and the overall fairness of the closing costs.
In addition, an attorney can ensure that the signed deed and other related documents are properly executed and explained to all relevant parties.
Purchasing or Selling a Family Home? We Can Help
A realtor can be a very helpful asset to the seller, just as a lender can be helpful to the buyer. Both of these parties have the same goal in seeing the deal proceed to the finish line, since their fees depend on it. However, neither a realtor nor a lender can offer you legal advice.
If you want peace of mind, we strongly recommend contacting a real estate attorney.
Mekhtiyev Law Firm represents a wide range of single- and multi-family home transactions, including any litigation cases related to them. We can represent property owners, buyers, property management companies, real estate agents, business owners, and new apartment community owners.
We offer various services from highly experienced attorneys who can advise you on the real estate process, negotiate on your behalf, draft various legal documents, and close deals successfully and efficiently. Our lawyers have wide-ranging experience when it comes to real estate and can assist clients with personalized solutions specific to the single and multi-family homes.
Reach out to us today by visiting https://mekhtiyevlaw.com or calling (212)203-6974
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