Understanding Real Estate Contracts: What You Need to Know

Are you planning to buy real estate in New York and realize your home ownership dream? Congratulations! However, when it comes to buying real estate, you must have a good understanding of the real estate contract so that there are no unpleasant surprises once you become legally obligated.

Indeed, home buying in New York is not merely about presenting a fat check and shaking hands to close the deal; there is more to it. That’s why potential buyers prefer to work with our Litigation lawyer Queens to navigate the process. To help you get started, here is a quick guide.

Earnest Money Deposit

Once you sign a real estate contract in New York, it is customary to provide an earnest deposit. You give the seller the amount to show your seriousness to proceed with the offer. The deposit totals, on average, one or two percent of the property’s purchase price, but it can rise to 10 percent too. Real estate buyers shouldn’t worry about it because it eventually goes into your down payment. However, you may have to forfeit the money if you don’t close the deal for no reason.

Contingencies

Another crucial aspect of real estate contracts is contingencies. These contingencies give you the power to decline the deal if the terms are unmet.

Financing– it means the home sale will not be finalized if you are unable to secure a property mortgage

Home Inspection: You shall not finalize the deal unless the seller allows you to inspect the home for serious issues like structural integrity, mold, or termite infestation.

Title– You will not purchase the property until you have verified that the seller is the real owner of the house

Home Sale– Another contingency you can add to the contract is that you won’t be able to close the deal unless you sell your previous property first.

Consult an experienced Real Property Law firm lawyer in Queens to determine what contingencies to include. A lawyer can also help you negotiate the contract with the seller getting you in a better position for the issues that matter to you the most.

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Ledwidge & Associates

Ledwidge & Associates, P.C. in New York City has years of experience helping clients create estate plans that fit their needs. We have the experience and resources to handle your critical legal matters with the utmost care and attention to detail.

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