Residential Real Estate info and FAQs
Residential real estate in New York moves quickly—and the fine print in a contract or lease can have long-term consequences. This page brings together plain-English guidance and FAQs on buying or selling a home, co-op, or condominium, plus common leasing issues, so you know what to expect at each step and what questions to ask. If you’d like counsel tailored to your transaction, The Margolis Law Firm can support you from contract review and negotiation through closing coordination.
In representing a prospective purchaser/seller, an attorney performs the following functions:
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Reviews and negotiates the Contract of Sale;
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Oversees the process of your purchase, i.e., complying with the terms and conditions of the contract;
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Reviews the Abstract of Title; and
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Coordinates the closing of title among all parties and the mortgage loan with your lender.
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Lease Guidelines
When leasing a residence it is important to understand the ins and outs of the contract you are entering. The terminology can be extremely confusing and to protect yourself it is useful to have an attorney help you with the process. Note the following as to legal agreements between a tenant and landlord.
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Lease Agreement or Tenancy Agreement
Before you can move in, a lease agreement will be drawn up. This is essentially a legal contract between the landlord and the tenant and details the terms of the lease. The duration of the lease is usually 2 years with an option to renew for a further 1 year or 2 years, based on the then-market rental or a mutually agreed rental. Certain New York City buildings are subject to rental laws, called rent stabilization laws.
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Buying or Selling a Co-op
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The main difference between a co-op and a condominium is the structure of legal ownership. When buying a co-op, you do not own a specific unit in the building but instead you own stock in the corporation that actually owns the buildings and all the apartments. You lease (the proprietary lease) your apartment or unit from the corporation. The unit’s size, location and the like, determine the number of shares of stock allocated to the apartment. There are monthly fees (maintenance fees) based on the number of shares of stock you own to cover the building’s mortgage payment, taxes, and general operating expenses. As a shareholder, you have a say in electing the Board of Directors who manage the building. To facilitate the sale or purchase of a co-op, a knowledgeable attorney is invaluable. Below is a list of services and activities that are usually involved in the process of buying/selling a co-op.
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If you are a seller, attorney representation may include:
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Telephone consultation with client, as appropriate
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Preparation of the sales contract
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Negotiation with buyer’s attorney
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Serving as escrow agent with respect to the Down Payment
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Title report review
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Coordination of pay-off and existing mortgage
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Attendance at Closing
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Preparation of Closing Statement
If you are a buyer, attorney representation may include:
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Telephone consultation with client, as appropriate
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Review of the sales contract and Prospectus
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Review of coop’s board minutes
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Negotiation with seller’s attorney
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Title report review
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Assist with mortgage commitment
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Coordination with buyer’s residential lease termination
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Attendance at Closing
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Preparation of Closing Statement
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