Real Estate Buyers Timeline
by
Matthew K. Tannenbaum on Feb. 18, 2016
Summary: A helpful primer for those who are about to Purchase a home, condo or co-op. This timeline will provide a step by step explanation as to what to expect from "accepted offer" to "closing"
Real
Estate Buyers Time Line
The purchase process in
1 OFFER ACCEPTED
Once you find the property of your
choice and make a verbal
offer. In New York, a contract for the sale for real property must be in
writing; thus a verbal offer creates no binding obligation upon either party.
Once your offer is accepted, move on to #2. If your offer is rejected, you can
make a counter-offer or look for a different property.
Do not put anything in writing, as this
may, unintentionally, create a binding contract. Often times the real estate
agent will request that you sign an offer or even a contract. Do not do so
without speaking to your Real Estate Attorney
2 RETAIN A REAL ESTATE LAWYER
Once your offer is accepted you will
need a real estate lawyer. In New York, buyers and sellers of real estate
almost always retain an attorney; the attorney’s job is to guide the parties
and handle the legal paperwork.
When looking for an attorney, make sure
the attorney concentrates his practice in real estate closings. While the fee
the attorney charges should always be a consideration, be aware of attorneys
who charge a so called low flat
fee. Often these firms are closing mills
or have an ownership interest in the title company insuring the purchase. While
you may meet with an attorney at the outset and an attorney will show up at
closing, often most of the work is performed by a paralegal or law clerk. Rarely
do they get to know you or your unique situation. Ask the low flat fee attorney
what title company he is using and if he has an ownership interest in the title
company. The low flat fee may be the result in the attorney sharing in the
title insurance premiums.
My office has
handled THOUSANDS of real estate closings over the past 20 years. We have represented buyers, sellers, title
companies and lenders at the closing table and have the experience and
knowledge to see problems before they arise and resolve them quickly so that
your home buying experience is both smooth and quick. I DO
NOT HAVE AN OWNERSHIP INTEREST IN ANY TITLE COMPANY.
3 - HIRE A HOME INSPECTOR
Almost every contract provides that the
seller is selling the house in as is
condition. That means that you, as the buyer, will assume the responsibility
for any repairs that need to be made. As such, it is important to know the
condition of the property before signing the contract.
If the
inspection reveals any defects, there are four (4) options:
Ask the seller to reduce the Purchase Price,
Ask the seller to make repairs prior to Closing,
You agree to accept the house as is
and make the repairs yourself, or
Withdraw your offer.
If the seller agrees to make the repairs, we will insert
language into the contract obligating the seller to do so prior to closing.
4 REVIEW & SIGN THE CONTRACT AND
PAY THE DOWNPAYMENT
Once the home inspection is complete and any condition
issues are identified (if any) it is customary for the seller’s attorney to
prepare the Contract of Sale. Once my office receives the contract, it will be
reviewed and any changes needed to protect you will be negotiated with the
Sellers attorney and added to the contract. Than my office will call you to
schedule an appointment to go over it in detail. After reviewing the contract
with you and answering any questions you will sign the contract. At this time,
you also write a check for the down payment.
At this time I will also do a mock
closing statement with you. This will give you, the buyer, an idea as to what
to expect with regards to adjustments, title fees and lender costs. We will also come up with an estimate as to
the amount of money you will need to bring to the table for closing.
We will than send the contract, along with your down payment
check to the seller's attorney. The seller will than sign
the contract and send us back executed copies.
Upon receipt of the fully executed contract, we email a
copy to you so that you may begin your mortgage application process. YOU ARE NOW OFFICIALLY IN CONTRACT!
5 SUBMIT YOUR MORTGAGE APPLICATION
If you are obtaining a mortgage, submitting your loan
application in a timely manner is the first critical step to having your
mortgage approved. The loan application cannot be officially submitted until a
fully executed contract is provided to the bank.
6 SUBMIT YOUR BOARD PACKAGE (COOPS
& CONDOS)
When purchasing a coop or a condo that requires board
approval, you must fill out and submit a board application (usually with a
processing fee) in order for the board to approve or deny the purchase.
7 SCHEDULE A CLOSING
In order to schedule a closing, the following conditions
must be satisfied:
The lender has issued a clear to close,
The sellers have cleared all title issues,
The Sellers are ready to give
possession and
All parties (see # 9 below) are available.
Once the above conditions are met, we will coordinate the
scheduling of a closing at a time convenient for all parties involved.
8 PERFORM A WALK THRU
Prior to attending the closing, your realtor will schedule
a walk-thru
to inspect the property. During the walk-thru, you must ensure that the
property is in the same condition that it was in when the contract was signed
and make sure any promised repairs were completed.
9 ATTEND THE CLOSING
At the Closing the deed (or stock certificate for a coop)
and other legal documents are given to the buyer and balance of the purchase
price is given to the seller.
Attendees at the closing are generally the following:
a) the Buyer;
b) the Seller;
c) the Buyers attorney;
d) the Sellers attorney;
e) the Lenders attorney;
f) the Sellers Banks attorney (in Coop
transactions);
g) the Title Closer;
h) the real estate brokers and
i) the Managing Agent (in Coop transactions).
The Closing customarily takes places either at the Sellers
attorney’s office or at the Lenders Attorney’s office. In Coop transactions,
the Closing usually takes place at the office of the Managing Agent.
I hope this information is helpful. Feel free to call my office for a free telephone consultation regarding your real estate matter.
Matthew Tannenbaum
(516) 683-1234