Attorney Steven Ebert – Due Diligence

Welcome to my new Informational Video Series regarding home buying in New York City with Steven Ebert

The following is a general overview of the key steps involved in the real estate Due Diligence:

Due diligence is a critical aspect of buying a home in New York City. It involves a thorough investigation and verification of various aspects of the property to ensure that the buyer is making an informed decision. Here are key components of due diligence in the NYC real estate market:

• Home Inspection:
  • A professional home inspection is essential to identify any structural, mechanical, or safety issues with the property. While not always required, it is highly recommended to uncover potential problems that may not be visible during a casual walkthrough.
• Title Search and Title Insurance:
  • A title search is conducted to verify the property’s ownership history and ensure that there are no outstanding liens, encumbrances, or title defects. Title insurance is typically purchased to protect against unforeseen title issues.
• Survey:
  • A survey of the property may be conducted to confirm the boundaries and dimensions of the land. This can help identify any encroachments or boundary disputes.
• Financial Review for Co-op Apartments:
  • If buying a co-op apartment, the buyer typically needs to submit a comprehensive financial package to the co-op board. This may include tax returns, bank statements, and other financial documents. The co-op board reviews this information to ensure the buyer is financially qualified.
• Review of Offering Plan (for Condominiums):
  • In the case of condominiums, buyers should carefully review the condominium offering plan, which provides information about the building’s financial health, rules, and regulations. The buyer’s attorney will often assist with this review.
• Mortgage Contingency:
  • Buyers should include a mortgage contingency clause in the contract, allowing them to cancel the deal without penalty if they are unable to secure financing.
• Zoning and Land Use Review:
  • Buyers may want to check local zoning regulations and land use restrictions to ensure that the property can be used as intended. This is especially important for those considering renovations or expansions.
• Environmental Considerations:
  • Depending on the location and history of the property, it may be advisable to conduct an environmental assessment to identify any potential contamination issues.
• Tax Assessment Review:
  • Review the property’s tax assessments to ensure that they are accurate. Property tax rates and assessments can have a significant impact on the overall cost of homeownership.
• Utilities and Systems Check:
  • Verify the condition and functioning of essential utilities, such as plumbing, electrical systems, heating, and cooling. Confirm that everything is in working order and compliant with local codes.
• Neighborhood and Building Analysis:
  • Research the neighborhood, local amenities, and the financial health of the building or homeowners association. This information can impact the property’s value and your overall living experience.

Working closely with a qualified real estate attorney is crucial during the due diligence process. They can guide you through the legal aspects of the transaction and coordinate with other professionals to ensure a comprehensive review of the property.

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Attorney Steven Ebert – Legal Process

Welcome to my new Informational Video Series regarding home buying in New York City with Steven Ebert

The following is a general overview of the key steps involved in the real estate transaction:

1) Engage a Real Estate Attorney:
It’s crucial to hire a qualified real estate attorney early in the process. The attorney will guide you through the legal aspects of the transaction, review contracts, and ensure that your interests are protected.

2) Get Pre-approved for a Mortgage:
Before starting the home search, it’s advisable to get pre-approved for a mortgage. This will give you a better idea of your budget and make your offer more appealing to sellers.

3) Find a Real Estate Agent:
Working with a real estate agent can be beneficial, especially in a competitive market like NYC. They can help you find suitable properties, negotiate with sellers, and navigate the local market.

4) Property Search and Offer:
Once you find a property you’re interested in, you’ll make an offer. If the seller accepts, you’ll enter into a preliminary agreement, usually in the form of a purchase offer or a letter of intent.

5) Contract Stage:
Once the offer is accepted, a contract is drafted. In NYC, contracts are typically prepared by the seller’s attorney. Your attorney will review the contract to ensure that your rights are protected and negotiate any necessary changes.

6) Due Diligence:
You will have a period to conduct due diligence, which may include a home inspection, title search, and review of financial statements for co-op apartments. Your attorney will assist you in this process.

7) Sign the Contract:
After due diligence, and if all conditions are met, you will sign the contract and provide a deposit (earnest money). This is often around 10% of the purchase price.

8) Mortgage Application and Appraisal:
Simultaneously with the contract signing, you will finalize your mortgage application. The lender will order an appraisal to assess the property’s value.

9) Closing:
The closing is the final step where ownership is officially transferred. Your attorney will review the closing documents, and you’ll sign the necessary paperwork. You’ll also bring the remaining funds required to complete the purchase.

10) Recording and Possession:
After the closing, the deed and mortgage will be recorded with the appropriate government office. You’ll then take possession of the property.

It’s important to note that real estate transactions can vary, and this overview is a general guide. Working closely with a qualified real estate attorney and other professionals will help ensure a smooth and successful home purchase in NYC.

For More Information Check out My Youtube Series!

For More Resources Check Out Resources.

 

Attorney Steven Ebert – Contracts

Welcome to my new Informational Video Series regarding home buying in New York City with Steven Ebert

The following is a general overview of the key steps involved in the real estate Contracts:

Several contracts are involved in the process of buying a home in New York City. These contracts help define the terms of the transaction and protect the interests of both the buyer and the seller. Here are some of the key contracts typically involved:

• Offer Letter or Purchase Offer:
  • This is the initial document presented by the buyer to the seller expressing their interest in purchasing the property. It outlines the proposed purchase price and may include other terms and conditions.
• Binder or Earnest Money Agreement:
  • Once the seller accepts the offer, a binder or earnest money agreement is often signed. This document formalizes the buyer’s commitment to the purchase and includes the amount of earnest money (deposit) to be paid.
• Sales Contract (Purchase Agreement):
  • The sales contract is a comprehensive document that outlines the terms and conditions of the sale. In New York City, the seller’s attorney typically prepares the initial draft. It covers details such as the purchase price, closing date, contingencies, and responsibilities of both parties. The buyer’s attorney reviews and negotiates the contract on behalf of the buyer.
• Co-op Purchase Application (for Cooperative Apartments):
  • In the case of purchasing a co-op apartment, buyers typically need to submit a detailed application to the co-op board. This application includes financial information, personal references, and a statement of intended use of the unit. The co-op board reviews the application before granting approval.
• Condo Offering Plan (for Condominiums):
  • When buying a condo, buyers receive a copy of the condo offering plan. This document provides detailed information about the condominium, including its finances, rules, and regulations. The buyer’s attorney reviews this plan as part of the due diligence process.
• Mortgage Commitment Letter:
  • Once the buyer’s mortgage application is approved, the lender issues a commitment letter, stating the terms and conditions of the mortgage. This letter is a crucial document in the closing process.
• Closing Statement (HUD-1 Settlement Statement):
  • Before the closing, the buyer and seller receive a closing statement, which outlines the financial details of the transaction. It includes the final purchase price, closing costs, and the amount due from or to each party.
• Title Documents:
  • Various title-related documents, such as the title report and title insurance policy, are part of the closing process. These documents ensure that the property has a clear title and is free from any liens or encumbrances.
• Co-op Proprietary Lease (for Cooperative Apartments):
  • In a co-op purchase, the buyer receives a proprietary lease, which grants the buyer the right to occupy a specific unit within the cooperative building.
• Deed:
  • The deed is the legal document that transfers ownership of the property from the seller to the buyer. It is signed and recorded at the closing.

It’s important to note that the specific contracts and documents can vary based on the type of property (co-op, condo, or house) and other factors. Working with a qualified real estate attorney is essential to navigating these contracts and ensuring that your interests are protected throughout the home buying process in NYC.

For More Information Check out My Youtube Series!

For More Resources Check Out Resources.