While you’re not required to have a real estate attorney represent you in New York City, we highly recommend it. In our experience, over 95% of buyers and sellers in NYC work with an attorney. Do you know how to handle title issues, arrange for property certifications, prepare the closing documents, and navigate the legal aspects of the deal? If not, then hiring an attorney is essential.
What Does the Attorney Do?
Typically, the attorney will handle the following, but make sure to verify that your attorney is willing to perform all of these tasks before hiring them:
- Review the contract to ensure all terms comply with the necessary housing guidelines and regulations. If necessary, the attorney will make adjustments to ensure the contract is in line with local laws and lender requirements.
- Prepare and review letters to negotiate and finalize the terms of the contract during the attorney review period and following any home inspection results.
- Order the title search on the property and provide a title commitment to both the buyer’s attorney and lender. If there are any issues with the title (referred to as “clouds”), the seller’s attorney will work to resolve them to ensure clear title at closing.
- Order the required certifications, such as water and property certifications, which may be necessary for the closing process.
- Order a payoff statement for any existing loans on the property and ensure that the necessary funds are sent to pay off those loans on the day of closing.
- Coordinate with the buyer’s lender to provide any additional documentation needed to finalize the buyer’s loan approval. This could include the sales contract, property disclosures, condo board approval documents (if applicable), and more.
- Prepare all the legal documents needed for the closing, including the Bill of Sale, deed of transfer, closing statement, and other required forms.
- Obtain the required transfer documents, such as the City of New York’s transfer tax documents, which must be filed to legally transfer ownership.
- Schedule the closing with the title company, confirming the date, time, and location, and ensuring all parties are notified.
- Attend the closing to finalize the transaction, resolve any remaining issues, and review and sign the closing documents on the seller’s behalf.
Additional Services for Condominiums and Townhomes:
- Obtain required disclosures such as financial documents, meeting minutes, and assessment payment history from the condo association.
- Provide the condo’s insurance certificate to the buyer’s lender, as this is often necessary for final loan approval.
- Distribute the sales package (if applicable) from the condo association to all involved parties.
Additional Services for Single-Family Homes or Multi-Family Buildings:
- Order and provide zoning certifications and any other relevant documents regarding the property’s compliance with city regulations.
- Provide a residential boundary survey to clarify property lines.
- Handle building registrations for properties with five or more units, if applicable.
This is what typically happens when everything proceeds smoothly. However, if issues arise, such as the need to cancel the contract, return earnest money, or resolve disputes, your attorney will also manage these issues, usually at no additional charge. This is why having a good real estate attorney on your team is so important.
How Much Does the Attorney Cost?
In New York City, real estate attorneys typically charge between $900 and $1,500, depending on their experience, the complexity of the transaction, and how busy they are. The attorney’s fees are paid at closing as part of your overall closing costs, so you don’t need to pay upfront. If a contract is canceled due to inspection issues or another valid reason, you typically do not need to pay the attorney’s fees.