Purchasing a home is one of the largest financial decisions you will make. In New York's complex real estate market, there are numerous pitfalls that can cost you dearly if you are not properly protected. Here are the essential steps every buyer should take.
In New York, it is standard practice for both the buyer and the seller to be represented by their own attorney. Your attorney is the most important safeguard in the transaction. They will:
Never sign a contract without having your attorney review it first. Key contract provisions to understand include:
A professional home inspection can reveal hidden problems that could cost thousands of dollars to repair. Common issues found during inspections include:
A title search examines public records to verify the seller's ownership and identify any liens, encumbrances, or other issues. Title insurance protects you against claims that may not have been discovered during the search, such as:
Your contract deposit — usually 10% of the purchase price — should be held in your attorney's escrow account, not given directly to the seller. This ensures that if the deal falls through under the terms of the contract, your deposit can be returned to you.
Ensure that the property complies with local zoning regulations and that any renovations or additions were done with proper permits. Unpermitted work can lead to fines, required removal, and complications when you try to sell in the future.
If purchasing a co-op or condo, review the building's financial statements, meeting minutes, and any pending litigation. These documents can reveal:
Real estate wire fraud is an increasingly common crime. Always verify wire transfer instructions by calling a known phone number — never rely solely on email instructions, as email accounts can be hacked.
Protecting yourself starts with having the right legal team. Contact Huang & Associates, P.C. for experienced representation in your real estate transaction.