New York Real Estate Attorney Explains Real Estate Transactions
A New York real estate attorney at NY Litigation Firm can help you with residential and commercial real estate transactions. For home buyers and investors, real estate transactions involve substantial sums of money and there are myriad legal issues that must be addressed during the transaction process. Having the right legal help throughout the transaction is essential to protecting your investment and your legal interests. Our firm can help.
Yulia Vangorodska will represent you throughout your transaction, from advising you on doing your due diligence to helping you to negotiate and draft an agreement to providing key details on financing and tax issues.
We can also help you throughout the closing process. In New York, you need an attorney to handle the real estate closing and the closing typically takes place at the office of an attorney. The attorney who helps you through the closing will assist with title searches, changing deeds, drafting important paperwork and recording the sale to ensure that legal ownership is transferred appropriately in accordance with the law.
When you want an attorney with the knowledge and skill to help your transaction go as smoothly as possible, our firm is the real estate law firm in New York that you should turn to. Give us a call today to find out more.
Commercial and Residential Purchase Transactions
Commercial and residential purchase and sale transactions are governed by contractual agreements between buyers and sellers. These agreements should be negotiated to include appropriate clauses to protect the interests of each party. The contracts should be comprehensive enough to spell out key details of the transaction and written clearly so they are enforceable if problems arise.
Commercial and residential purchase and sale contracts may include clauses addressing a number of issues including:
- The purchase price
- The bundle of rights being transferred, including mineral, oil, and gas rights
- Any encumbrances on the property
- Details about what real and personal property will be transferred to new owners
- The timeline for purchase
- Details about who will pay for certain transaction costs and closing costs
- Any necessary conditional clauses, such as a clause allowing a seller to void the transaction if the seller cannot find a new home to move to or a clause allowing a buyer to void the transaction if serious problems arise in inspection or if the buyer cannot secure financing
- Details about the deposit which must be paid by the buyer and the circumstances under which the buyer can lose the deposit
- Information on the closing date when ownership will officially transfer
There may also be other key issues that need to be addressed depending upon the particular transaction, especially in circumstances where commercial real estate is transferring to new owners.
A New York real estate attorney can help buyers and sellers to negotiate an agreement that is favorable to their interests without putting the deal at risk. Yulia Vangorodska has the necessary experience to help clients understand the contract terms they should negotiate for and to drive a hard bargain while maximizing the chances that the transaction is completed successfully.
Real Estate Closings
Real estate closings are some of the most important services that New York real estate attorneys provide. You will need an attorney to ensure the deed is properly recorded so that the municipality where the property is located can update their records regarding who the official property owner is. However, there is much more to the closing process than simply recording the deed. An attorney will help you to:
- Complete a title search prior to closing: It’s imperative that a title search be conducted to determine if there are any liens or encumbrances on the property. A search should be conducted close to the time of closing so no liens are missed that were placed on the property shortly before the sale is completed.
- Prepare the paperwork for changing the title and deed: The title and deed are the official records of ownership so it’s imperative that the paperwork be done correctly in accordance with county requirements. An attorney can help with this process and can advise buyers on how they should take title so they can chose the right method of owning the property.
- Determine the appropriate sum to bring to closing: A buyer needs to bring a cashiers check that fully pays all costs, including not just mortgage closing costs but also any necessary repayments to the seller for pre-paid property taxes, homeowner’s association dues, or other costs the seller paid.
- Review closing documents: Buyers and sellers will sign the actual closing documents at settlement. You should have an attorney there to look over the documents and make sure everything is in order regarding the property that will be transferred and the method of ownership that the new owners have selected. You’ll also want your lawyer to make sure any financing documents are in order.
- Conduct the settlement: The actual real estate closing will typically take place in an attorney’s office, although it can sometimes take place at the office of the title agent.
- Record the transaction: Your attorney will officially go through the process of recording the transaction with the municipality so the correct owner of the property is on record.
NY Litigation Firm will help you to ensure there are no surprises at closing by working with you throughout the process of the transaction to identify and correct any issues early in the process.
We’ll also make sure the closing goes smoothly by advising you at every step of the way and using our extensive legal experience to prepare comprehensive, correct, and accurate closing paperwork.
Seller and Real Estate Broker Misrepresentation
Ideally, residential and real estate transactions will proceed smoothly and all parties will end up satisfied with the outcome of the property sale. Unfortunately, myriad problems can arise when the ownership of residential or commercial real estate is transferred.
In many cases, serious issues occur when a buyer feels as though the seller failed to provide required information or provided material misleading information about the property. While buyers have some obligations to do due diligence, especially when a property is sold as is, brokers and sellers also have obligations to be honest about the property, its condition, and the terms of the sale.
When it becomes apparent that a seller has failed to make appropriate disclosures, or when a real estate broker engages in misrepresentation, legal action can be taken.
The remedy available to the buyer will depend upon the phase of the transaction in which the misrepresentation or omission is discovered, the extent and nature of the losses caused by the misrepresentation, and whether the buyer can prove the extent of damages caused by the misrepresentation.
Whether a buyer wants the transaction rescinded or wants to be compensated for damages, the buyer will need to demonstrate that the broker or seller’s misrepresentations or omissions were improper and were the direct cause of losses. The buyer will also need to prove that losses actually occurred, as buyers cannot be compensated for speculative loss.
NY Litigation Firm can provide assistance with the process of taking legal action in cases of alleged broker or seller misrepresentation. We can represent buyers, sellers, and brokers and can provide representation whether the dispute over the transaction is resolved in mediation, arbitration, or litigation.
You should give us a call as soon as possible to get help in responding when a problem arises or when you’re accused of failing to provide truthful, comprehensive and accurate information in connection with a real estate transaction.
Because real estate purchases involve substantial sums of money, securing outside financing is almost always necessary. Buyers typically will utilize banks, mortgage brokers, or other lenders to secure the necessary financing to complete a purchase. In cases of commercial real estate, money may also come from many different investors.
When a real estate transaction must be financed by any outside source of funds, it is imperative that the buyer who is borrowing money to enter into the transaction fully understand the terms of any financing agreement.
The mortgage crisis of 2008 was caused, in large part, by millions of borrowers taking loans that they did not fully understand and becoming unable to make payments associated with complicated loans. Buyers lost their homes and millions of dollars in collective wealth were lost by buyers who had entered into purchases they could not afford using creative methods of financing.
A NYC real estate attorney can provide the necessary assistance to residential and commercial real estate purchasers in ensuring that the terms of a financing agreement are reasonable and fair.
Yulia Vangorodska can carefully review any financing agreement that you are entering into to provide insight into your current obligations, any clauses that could affect your ability to repay such as prepayment penalties, and any future changes to the financing agreement that could impact your obligations.
Many residential buyers will opt for simple fixed rate mortgages spanning a period of 15 to 30 years, which means that payments remain the same for the duration of the loan. However, there are a host of other financing options including adjustable rate mortgages, balloon mortgages, and interest-only mortgages. While these mortgages may make a property appear to a buyer to be more affordable initially, they can put buyers at risk of loss in the future if payments adjust upward or if a large balance becomes due and a buyer is unable to refinance or to repay the outstanding balance on the loan.
Buyers also need to understand additional costs associated with financing real estate transactions, such as points that may need to be made to buy down the interest rate or private mortgage insurance (PMI) costs if the buyer is putting down less than 20 percent down payment.
A real estate lawyer in New York can help buyers to understand the total costs associated with a transaction, the costs of securing financing, the terms of the loan agreement, and any potential future changes that could impact total payments due. By having a professional review your financing agreement and offer you detailed advice, you can make certain that the property is truly an affordable one.
NY Litigation Firm also assists with the financing process for commercial properties, including with any issues related to valuation of the property for purposes of securing financing.
Getting Help from a New York Real Estate Attorney
Whether you are entering into a residential real estate transaction or a commercial real estate transaction, it is imperative that you have an attorney providing you with advice throughout the transaction process. You need a legal counsel to advise you on the protections that are in place under New York law as well as the obligations imposed upon you by law.
You also need to ensure that you have an attorney draft the terms of the purchase/sale agreement and review your financing so your interests are fully protected. This agreement creates private law that governs the terms of the transaction and failing to fulfill your obligations under it can create serious legal consequences.
Finally, you’ll need an attorney to facilitate the closing, make sure that your rights are protected, and assist with the formal transfer of ownership so the new owners of the property are correctly recorded in municipal records.
We will help with the negotiation process so you can ensure your transaction terms are favorable and your interests are protected. We will help you to draft a contract that can be enforced and understood by all parties, and will assist you with the process of securing financing and ensuring you understand all of your obligations for repayment. We’ll also represent you and oversee the closing process.
When you want to ensure your residential or commercial real estate transactions go smoothly and you need a trusted advocate to protect your interests, we are here and ready to help you.
Give us a call today to find out more about the different ways in which can assist you if you are buying, selling, or leasing residential or commercial real estate.