Selling Real Estate in Westchester and New York City
What does The Donaldson Law Firm actually do when you represent a seller?
That is a very good question. We do many things but, tactically speaking when we represent sellers we prepare the Contract of Sale and provide it to the buyer’s attorney. We act as escrow agents and hold the buyer’s contract deposit in our attorney account until closing. We handle any objections to the title. We prepare the deed, closing adjustments, and NYS/NYC real estate transfer docs. And we answer all of your questions within 2-3 business hours, guaranteed.
Do I need to hire an attorney if I’m going to sell my house, apartment, or commercial property?
When it comes to real estate in New York, whether residential or commercial, you have the right to forego retaining an attorney. However, we recommend you retain a reputable real estate attorney and that’s true whether you hire The Donaldson Law firm or any other highly-reviewed law firm.
Why? Because you could easily get lost trying to prepare a Contract of Sale which will be your obligation when you’re selling real estate.
More importantly, it’s likely that the buyer will have an attorney protecting his/her/their interests, so why choose to go head-to-head with an experienced real estate lawyer who is only going to look out for the person on the other side of the table?
If I hire The Donaldson Law Firm to represent me, how much is it going to cost?
We offer clients an affordable flat rate fees ranging from $1,500 to $3,000 for most residential real estate which covers everything from drafting the Contract of Sale, reviewing title reports, certificates of occupancy and compliance, and attending the closing to ensure you end up with a check for the agreed purchase price.
Because commercial real estate transactions can involve a lot more moving parts such as reviewing existing leases, commercial loan documents, LLC and corporate papers, etc., we typically work with commercial clients on an hourly basis.
What happens after I sign the Contract Of Sale?
While every closing can be slightly unique, most real estate transactions will progress as follows:
The buyer delivers the contract deposit to our office which we hold it in our attorney account until closing.
The attorney for the buyer will order what’s called a title report, which is discussed in greater detail here.
The buyer is obligated to apply for a loan if there is a mortgage contingency clause in the Contract of Sale. As that part of the process progresses, the lender will have the property appraised.
The lender and attorneys for both parties will review the title report to ensure the seller can transfer ownership without liens or other encumbrances.
Upon approval of the title report and, once the lender is ready to go, a closing date will be scheduled.
After I sign the Contract Of Sale, can I back out of the deal?
Not without good reason. Even if someone else approaches you after signing the Contract of Sale, you are obligated to adhere to its terms. That means that, unless the buyer is unable to obtain a mortgage or if you as seller are unable to satisfy any of your obligations, you cannot cancel the contract after you sign it.
What exactly is the contract deposit?
A contract deposit is the money a buyer agrees to pay upon signing the contract. It is sometimes referred to as an earnest money deposit. If a buyer did not agree to provide a contract deposit, you as seller would have little on which you could rely to enforce the Contract of Sale if a buyer wanted to back out of the deal.
How much should I agree to accept as a contract deposit?
It is customary in NYC and Westchester for a buyer to provide a contract deposit of at least 5% of the total purchase price and as high as 20%.
What happens if I had work done to my home but did not obtain certificates of occupancy?
It depends on the nature of the renovation or addition and whether the buyer is obtaining a loan
Why does it make a difference if the buyer is obtaining a loan or not? Because if the Contract of Sale is contingent upon the buyer receiving a loan, here’s how a lender will view a missing certificate of occupancy: “If the buyer defaults on the loan and this piece of property goes into foreclosure, then we’re not going to want to have to deal with the time and cost associated with a missing certificate of occupancy.”
In other words, lenders will usually require that certificates of occupancy are obtained in order to protect their investments. This means that you, as seller, will have to obtain a certificate from the local building department.
However, if the buyer is not obtaining a loan or if the lender is indifferent, then the decision rests with the buyer. In that event, the Contract of Sale will likely not obligate you to obtain a certificate of occupancy for the work previously performed, but the buyer may ask for a credit in an amount equal to what he/she/they anticipate it will cost to obtain one post-closing.
If I’m removing any fixtures from the property before we move out, does that need to be in the Contract of Sale?
Yes. Anything that is physically attached to the property like chandeliers, built-in bookshelves, etc., must remain unless you reached a prior agreement with the buyer and their exclusion is included in the Contract of Sale.
What if my refrigerator or some other appliance dies between signing the Contract of Sale and closing?
Typically, the Contract of Sale will obligate the seller to have all appliances in “working order” as of the date of closing. This means that you must have the refrigerator (or any other broken appliance) repaired or replaced before closing.
Why does the closing date say “on or about?”
“On or about” means the closing date is a target rather than a definite date. Because it is impossible to determine when all of the parties to the transaction, i.e., the buyer, buyer’s attorney, lender, lender’s attorney, real estate agents, etc., will be available and ready to close on any given date 60 days in the future, the closing date is a rough guess at the time the Contract of Sale is drafted and signed.
If I’m still paying a mortgage on the property I’m selling, how is that handled at or before the closing?
Once a closing date is confirmed, contact your lender and request a “mortgage payoff letter” which will include the exact balance due as of the closing date. The balance due will be provided to the buyer’s attorney so the buyer comes to the closing with a check payable to the lender in the same amount in the payoff letter.
How long will it take before we can close?
On average, closings occur ~60 days after the Contract of Sale is fully signed. Sometimes they happen faster near ~45 days and sometimes they take a bit longer, closer to ~90-120 days depending on circumstances that arise.
What actually happens at the closing?
The most important part of the closing for a seller is that you receive one or more checks that equal the amount of money you are owed for the property. In return, the buyer receives a deed and the keys to the property.
Where will the closing take place?
If the buyer is obtaining a loan, then there’s a very good chance the closing will occur at the office of the lawyer representing the lender. Otherwise, closings usually take place at the seller’s attorney’s office.
How long does an average closing take?
Overall, most closings take about 60-90 minutes.
Can I sign the documents needed to close before the closing so I don’t have to attend?
Yes. In that event, we will likely ask you to sign all of the necessary documents several days before closing so we can attend on your behalf.
What happens after the closing?
Not much. If you attend the closing, you will leave with the sale proceeds. Several days thereafter, you will receive a package from our office that includes your final closing statement with copies of checks and all of the documents from the closing. If you do not attend the closing, we will send you the sale proceeds and closing statement via overnight mail 1-2 after the closing.
If you have any questions regarding how we help seller (and buyers), please don’t hesitate to give us a ring or send us an email.