Chances are you’ve worked very hard to afford a home in New York. In fact, buying a house might be the biggest investment you’ll ever make. Because you’ve worked so hard and because buying a home is such a big investment, it is important to have all your bases covered during the purchase.
While hiring a real estate agent is often necessary to help you find the right property, hiring a real estate attorney is just as important to facilitate a smooth, problem-free transaction. They also may be needed when refinancing a mortgage, leading to the importance of understanding what a real estate lawyer does and knowing what questions to ask before hiring them. For a free consultation with a top-rated New York real estate attorney at Sishodia PLLC, call today at (833) 616-4646.
Real Estate Law in New York
Real Estate Law covers the process of buying and selling properties. This includes land, as well as any structures built on that land. Real estate law also covers business transactions such as leases, loans, and mortgages. In addition, deeds and property taxes, estate planning, zoning, and titles may be included in the arena of a real estate attorney.
Real estate lawyer’s job is to ensure that the proper procedures are followed when a property is bought or sold. He or she must be licensed in the state where the transaction takes place since the laws governing real estate vary from one state to the next.
What Does a Real Estate Lawyer Do in New York City?
A real estate lawyer specializes in real estate law. They are responsible for handling all aspects of residential and commercial transactions, they review documents, including purchase agreements, mortgage documents, titles, and transfer paperwork.
In New York, you are allowed to buy a property without an attorney. However, for all practical purposes, almost all transactions in New York City do require at least two experienced real estate attorneys, one to represent a buyer, and one to represent the seller. A real estate attorney reviews or prepares all signed documents needed to complete a closing on a property. They will represent the buyer’s or seller’s interest at the closing and ensure that all parties involved are treated fairly. This is why it might be beneficial to have a professional estate attorney present at closing even if New York does not require one.
Responsibilities of a Real Estate Lawyer
Real estate attorneys conduct due diligence (review board minutes, offering plan, and building financials), prepare and review documents like purchase agreements, mortgage and title documents, and transfer documents. Once hired, they handle the transaction and attend the closing with the buyer. They ensure that the transfer is legally binding and in the client’s best interest.
Real estate lawyers can help their clients prepare documents, order title search and title insurance, lien search, and Eagle -9 Insurance (for coops) and complete a review of the title searches during the purchase of a property. They also handle escrow and the transfer of funds. If financing is required, the attorney shall work with your lender to facilitate the clearance of your loan.
What Does a Real Estate Attorney Do for a Buyer?
A real estate attorney plays a crucial role in a property transaction, safeguarding the buyer’s interests and ensuring a smooth and legal transfer of property rights. In New York, where the sellers’ attorney typically drafts the initial contract of sale, the buyer’s attorney negotiates and finalizes the contract terms. They also add a rider comprising additional terms for negotiation with the seller.
After contract finalization, the buyer signs the contract and sends a downpayment, typically 10% of the purchase price in New York, to the sellers’ attorney. This downpayment, akin to “earnest money”, is at risk if the buyer abandons the deal without a contractually valid reason. The sellers’ attorney places the downpayment in an escrow account.
Post-contract signing, the buyer’s attorney executes several tasks in preparation for closing. They order a title report to identify any potential issues, such as liens or violations, that the seller must resolve pre-closing. They also collaborate with the buyer to provide necessary information and documents to lenders for mortgage applications.
The attorney calculates the closing costs owed to various parties, including the sellers, the sellers’ lender, and the title company. They represent the buyer at the closing, reviewing and advising on important documents like the deed, transfer tax returns, and mortgage documents. Their role also includes ensuring all payments are accurately made.
| Responsibility | Description |
|---|---|
| Due Diligence | Conducting due diligence, which includes reviewing board minutes, offering plans, and building financials, to assess the property’s status and potential issues. |
| Document Preparation | Preparing and reviewing various legal documents such as purchase agreements, mortgage documents, title documents, and transfer documents. |
| Closing Representation | Attending the closing with the buyer and ensuring that the transfer is legally binding and in the client’s best interest. |
| Title and Lien Services | Assisting clients in ordering title searches and title insurance, conducting lien searches, and handling Eagle-9 Insurance for coops. |
| Title Search Review | Completing a thorough review of title searches to identify any potential title issues that need to be resolved. |
| Escrow and Funds Transfer | Managing escrow accounts and facilitating the transfer of funds between parties involved in the transaction. |
| Working with Lenders | Collaborating with the lender to ensure a smooth clearance process for the client’s loan if financing is required. |
What Does a Real Estate Attorney Do for a Seller?
In New York, a real estate attorney plays a critical role in assisting sellers with the sale of their property. One of their primary responsibilities is drafting and negotiating the contract of sale, a document that outlines all the details of the transaction. This includes specifying the property address, purchase price, deposit amount, mortgage details, and the expected closing date. Additionally, the contract covers who will handle transfer taxes, how liabilities are shared, and protocols for potential changes to the closing schedule.
Real estate attorneys also handle disputes that may arise during the sale process. It is rare for either a buyer or seller in New York to enter a transaction without legal representation. For a seller, going up against a buyer’s attorney alone can be daunting due to a lack of legal training and familiarity with real estate law. A real estate lawyer has the necessary legal acumen to discern between minor issues and those requiring serious legal attention, thereby safeguarding the seller from potential pitfalls.
Another significant role of a real estate attorney is managing the mortgage payoff. Sellers might not be aware that their last mortgage statement does not reflect the final amount needed to clear the mortgage at closing. Real estate lawyers handle the calculation, including additional interest that accrues until the payoff is complete.
Finally, for the closing itself, the attorney prepares all required documents. While some forms can be downloaded and have standard terms, real estate attorneys make necessary modifications to these documents to help ensure that the property title transfers correctly and legally between the buyer and seller. This attention to detail is essential in protecting the seller’s interests throughout the transaction process.
When Should You Hire A Real Estate Lawyer?
Real estate law is a broad field that encompasses many different areas. There can be a lot of moving pieces when it comes to New York residential or commercial transactions. A real estate lawyer can help you navigate through the ins and outs of real estate law.
Our team of real estate lawyers from Sishodia PLLC is here to help you. With years of experience navigating New York real estate laws, we will make sure that you get individualized legal solutions while keeping your best interests at the forefront. To get experienced counsel on all things related to property rights or to know more about how we can help contact us at (833) 616-4646.
