Homesellers often have more to worry about than buyers because in addition to the paperwork and questions surrounding the sale of their existing home, they must prepare for the purchase (and move to) a new home. Below is some helpful information to help facilitate the process, and make certain that you maximize your sale. For further explanations or additional information on New York residential real estate sales, Contact us.

Be Prepared: Have your Paperwork Ready!

Before you start showing your home to potential buyers, you should be prepared to present the documents that you will need for your sale. They include:

The Deed - This is the legal document, which transferred title to you when you purchased your home. It verifies that you are the rightful owner of your property, describes the legal bounds of your property, and defines the manner in which you may transfer your property to a third party.

The Survey - This is the map outlining the legal boundaries of your property and how you home is situated on your property. The recital of your property lines should match those contained in your deed.

Certificate of Occupancy (C.O.) - This is the document which verifies that your home met the requirements of your local building code at the time that it was built. Depending upon the age of your home, you should have a C.O. for each permanent structure on your property. This includes any additions or extensions as well as detached garages, in ground pools, cabanas and certain decks and patios. You may not be able to close on your sale if you do not possess all of your C.O.’s.

Mortgage and Note - In a high interest rate environment, a mortgage which may be assumed by a purchaser is a valuable asset. If your mortgage is not assumable, it will have to be satisfied at closing. A copy of your last mortgage statement will assist your attorney to obtain payoff figures to satisfy any outstanding mortgages or other obligations.

Tax / Utility Bills - Although these are not critical, an informed buyer may ask about the real estate taxes and fuel charges.

If you have any questions about these documents, call our offices for help.

SELLER’S ECONOMICS: How much are you really getting for your home?

No matter when you purchased your home, selling it for a profit is always a warm feeling. Before you throw a log on the fire, don’t forget there are costs in selling a home. They include:

Brokers Commission - If you are working with a real estate broker, you are responsible for the payment of the sales commission. The brokers commission is usually negotiated at the time your home is listed with the broker on a case-by-case basis.

Transfer Fees - Whenever property is transferred in New York State, the State transfer tax is due from the Seller at the time the new deed is recorded. The State tax is $2.00 for every $500.00 of the selling price. If you are selling your home for $150,000.00, the Tax will be $600.00 (150 x $4).

If the property is in New York City, the Seller must also pay NYC Real Property Transfer Tax (RPT). For most properties, the RPT is 1% of the sale price, for sales less than $500,000.00.

Satisfaction of Mortgage(s) - Don’t forget that you may have a mortgage or other liens to satisfy from the proceeds of your sale.

Real Estate Taxes / Adjustments - Although you may have found a buyer for your home- it is still your home until you deliver a deed and move out. You are responsible for the payment of all taxes and utilities until you deliver possession to your buyer.

The above outlines most of the costs of selling a home- except legal fees. This is a sensitive issue that must be discussed between attorney and client before the contact is drawn- not at closing when it is too late.

The Law Office of Eric Habib can provide you with superior legal services at a reasonable cost. We state our fees and other costs, in writing, prior to taking any work on your behalf.

THE REAL ESTATE CONTRACT:

Paperwork = Control

In today’s market, you will be working harder than ever to sell your home. You want to know that once you accept a prospective buyer’s offer, the burden of selling your home has been lifted from your shoulders. This is why the drafting of your CONTRACT OF SALE is a top priority.

The Contract of Sale outlines the terms and conditions by which you have agreed to sell, and the buyer has agreed to buy your home. In particular, it states the basic responsibilities of both the Seller and the Buyer. Once the contract is signed by both parties, you are bound to those terms and conditions. If a contract is not well written, it can lead to problems, delays or even the cancellation of your closing!

The key to the smooth sale of your home is knowing that you have the documents necessary to close the deal before you sign the contract. If a document is not available, or does not exist (as may be the case regarding a Certificate of Occupancy), the contract must be drafted to keep the seller in control by giving you enough time to obtain that document prior to closing. From the Seller’s perspective, if all the paperwork is in place, the contract should be subject only to the buyer obtaining the necessary financing to complete the sale.

Once the mortgage is approved, there should not be any open issues that the seller cannot control. Since the seller is totally prepared, the parties can proceed to a smooth closing!

Eric Habib is well versed with the laws and regulations governing real estate transactions in the State of New York, and his advice can help ease concerns associated with real estate transactions in the New York Metropolitan area, including Long Island and Westchester. Contact the Law Office of Eric Habib. Let us help you with your real estate endeavors.