Fratello & Fox, P.C.

516.496.0730

ATTORNEYS AT LAW

              You’ve found a new home and you are ready to buy, now what?  As with any purchase, you should know what you are buying and understand the process of transferring ownership.  Highlighted below are important steps to the purchase of your new home.

 

Inspections

             Once you have identified the home you consider buying, you should order a home inspection and termite inspection.  A home inspection will allow you to evaluate the home’s structure and mechanical systems, spot items that require repairs or replacement and will assist in estimating the lifespan of the home’s electrical, plumbing and heating systems, among other things.  A termite (and other wood boring insect) inspection identifies prior and present infestations and may be conducted before or after the contract of sale is signed.  Inspections can affect the negotiation price, your willingness to purchase the home and identify problems that may need to be remedied before the closing date.

 

Binder

             After the inspections are completed, and if you have decided to move forward with the purchase, you will most likely be asked to sign a binder.  A binder is a document that includes various details such as: the purchase price, down payment amounts, anticipated mortgage amount, realtor information, attorney information and an anticipated closing date.  You should always make the binder subject to attorney approval.  Read the binder carefully and if you don’t understand something, ask an attorney!  Once the binder is signed, the realtor will typically forward a copy to the buyer’s and seller’s attorneys.

 

Contract

             Once the attorneys receive the binder, the seller’s attorney will draft the contract of sale (downstate New York) and contract negotiation commences.  The contract of sale identifies the parties, fixes the purchase price and down payment amount, describes the property being sold, and expresses the personal property that will be part of the sale.  A real estate contract usually makes the sale contingent upon the buyer receiving a mortgage and much, much more.  You should understand the terms of the contract and your rights.  After the contact has been signed by both parties, the buyer typically delivers the down payment to the seller’s attorney to be held in escrow.

 

Title Report

             A title report is ordered for the benefit of the buyer and the title insurance company.  It will disclose liens, judgments, how the current sellers obtained title, potential boundary line issues, outstanding property violations, permits, property and/or school tax due, bankruptcy filings by the buyer and other important information.  Issues pertaining to the title usually must be resolved before the closing so that the buyers can obtain clear title.  Title insurance is typically purchased on behalf of the buyer and lender at buyer’s cost.  Title insurance protects the buyer against possible claims relating to the title of the property.

 

Closing

             At the closing, title to the home is transferred to the new owners by deed and the buyer pays the seller the balance due.  Adjustments to the amount due will often be made to allow for a tax and/or fuel credit.  If the buyer is taking out a mortgage, the mortgage documents will be signed and the bank giving the mortgage will supply the funds at the closing.  After the closing, the title company most often brings the deed and mortgage to the county clerk’s office for recording.

 

             Buying a home is a major investment. Reliable and experienced professional guidance is a must. 

 

Dated: 9/2006

 

Buying a home?

The information in this website is intended for information only and does not represent legal advice.  Receipt of materials from this website does not constitute an attorney-client relationship between Fratello & Fox, P.C. and the receiver.  Professional counsel should be sought before utilizing any information contained in this website.