Gea Elika's Blog, page 117

Avoid These Common Co-op Buying Mistakes

Purchasing a New York City co-op is a unique experience. There are valuable lessons we can impart to you from our extensive experience in helping the city’s buyers find suitable co-ops. Avoiding these mistakes can save you a lot of time and heartache.

 

 

Not using your own agent

An exclusive buyer’s agent works for you. The agent owes a fiduciary duty to the buyer, and he/she makes sure you do not overpay for an apartment Should you try to do this on your own, you will not save on the commission, since the seller pays this to the agent Instead of splitting it, he/she keeps the entire amount. The seller’s agent owes his/her client a fiduciary duty, and this includes getting the highest price. Purchasing a co-op adds another layer of complexity to the process, and you are going be glad you have an agent on your side.

You do not understand the financial requirement

A lender’s pre-approval letter is a must have when apartment hunting in New York City. You may have a sizeable cash balance ready to use for the down payment. However, co-op boards typically require much more. The boards want to ensure you have enough liquidity to pay monthly maintenance after you close. Post-closing requirements are typically one to two years of maintenance payments, and the board favors cash and other liquid assets such as mutual funds or shares of stock.

You need to adjust your expectations if you do not have the required liquidity. Another co-op building may work since boards have different requirements,

You don’t check the co-op’s approved lenders

There are lenders that will not extend mortgages to buyers in certain co-op buildings. This is not based on your financial situation, but, rather, there is an issue with co-op building itself. There are several reasons this could occur, such as the poor shape of a building’s finances and pending litigation. These serve as red flags, and knowing this ahead of time saves you time in order for you to find your dream co-op unit in a great building.

Celebrating too early

An offer is not official until both parties sign the contract. Even if the seller’s agent conveys his/her client’s acceptance, and you sign the contract, this is not a done deal. In fact, the seller can keep showing the apartment. With most of New York City real estate still favoring sellers, it is worth remembering that you are at a disadvantage.

Even once the seller signs the contract, you still have to submit your board package and pass your interview.

You do not take the application and interview seriously

It is not enough to have your offer accepted by the seller. You need to pass muster with the board, which are notoriously strict. You need to put together your board application and financial package. Following this, the next step is to prepare for your interview. Your agent can help you, but do your part and take it seriously.

Buying a co-op as an investment

New York City’s co-op boards generally do not like owners renting out units, preferring owners occupy the unit. Typically, boards either forbid subletting outright or place strict time limits. If you are looking for investment income, a co-op is not ideal. Condos usually have less strict requirements.

You do not hire a lawyer

Your lawyer is another important person on your side. He/she helps you by conducting due diligence, including reading the co-op’s financial statements and board minutes. Your lawyer makes sure you send the requested documents to your lender in the required timeframe and disperses the funds.

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Disclosure Requirements When Selling NYC Real Estate

New York State has some laws in place to protect buyers. For instance, there’s a law designed to protect people who invest in a car and end up with a lemon. Disclosure agreements exist to protect the buyer from such a scenario. But despite a home purchase being an even bigger investment than a car, NY State has few requirements in place for making disclosures. Few though does not mean any. Whether you’re a buyer or seller, you should have a good understanding of a seller’s disclosure obligations in a property transfer. Read on to learn what those are.

 

Disclosure Obligations in NYC

Most property transfers in NYC are done via the principle of “Caveat Emptor” – let the buyer beware. This means that sellers have little duty to disclose defects. It’s up to the buyer to inspect the property for any. If found, all the buyer can do is ask that they are repaired before closing or walk away from the deal.

However, there are exceptions to “caveat emptor.” Such as if the seller has a special relationship of trust with the buyer. For example, a trustee-beneficiary, guardian-ward, agent-principle, or attorney-client relationship. If a seller is found to have actively concealed a defect or impeded the buyer’s efforts to inspect the property, they can be held liable for damages caused by the defect.

The Property Condition Disclosure Act

In 2002, a new law went into effect known as the Property Condition Disclosure Act (PCDA). By this law, sellers must complete a standard form disclosure statement disclosing the exact state of the property. It consists of 48 questions about the property and is organized by topic. It must be completed and delivered to the buyer before they sign the final purchase contract. Failing to do so will result in the seller having to make a $500 credit payment to the buyer at closing.

The PCDA does Not Require the Seller to Hire an Inspector

It should be noted that, under the PCDA, the seller is under no obligation to carry out a home inspection. All that’s required of them is that they disclose known defects. The very language of the statement makes it clear to the buyer that this is not a warranty or guarantee of the state of the property. The onus is still on the buyer to conduct a home inspection.

Exceptions to the PCDA

The PCDA only applies to “residential real property” – defined as one-to-four family dwellings. It does not include condos, co-ops, vacant land or property that is part of a homeowner’s association. Also, certain types of property transfers are also except such as:

A court-ordered transfer such as probate, foreclosure, divorce or bankruptcy
Transfer made to distribute the property of a decedents estate or trust
A transfer made to the State of New York or any other unit of local government
Transfer of a newly constructed property that has never previously been inhabited
A transfer made to another co-owner of the property or spouse or a relative with a common ancestor.

Procedure for Completing the PCDA

Complete the statement by answering each of the questions while providing details of any known defects. You then sign at the bottom, and the completed statement is delivered, usually by your broker, to the buyer or their agent. The seller then signs an acknowledgment of receipt and understanding. If later, you become aware of any defects you must send a revised statement to the buyer. However, you are under no obligation to do this if you discover the defect after closing

Due to the relatively low penalty of $500 for not completed the PCDA, many NYC buyers forgo providing it. Be aware that going this route does not protect you from liability in the case of exceptions to caveat emptor. You should discuss this with your attorney before proceeding. Also, you should have the buyer acknowledge in writing that the credit of $500 was accepted in lieu of the statement.

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Are You Facing Foreclosure? Know about the Process and your Rights

Are you a homeowner who’s facing the scary prospect of a foreclosure? The possibility of losing your home is no laughing matter. But don’t think everything is against you. Each state has its own laws regarding foreclosure so read on to learn about the process in New York and what your rights are.

 

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Mortgage loans in New York

When you take out a loan to purchase a property in NYC you are required to sign two documents. This is the promissory note and the mortgage (or deed of trust). The promissory note, effectively a glorified IOU, contains the promise to repay and the terms of the repayment.

What happens when payments are missed?

Most loans allow a grace period of about 15 days when you miss a payment. After this, your loan servicer will assess a late fee. You can learn what your grace period and late charge amount are by looking at your promissory note. This information can also be found on your monthly mortgage statement.

After you’ve missed a few payments your mortgage servicer will begin sending you letters and making phone calls reminding you to get caught up with payments. Don’t ignore these as this is a good chance to discuss loan mitigation options.

Pre-foreclosure

State law requires that the lender must wait 120 days before they can file for pre-foreclosure with the county clerk. This means there is now a pending lawsuit against the property and its title is being publicly contested.

If the property is owner-occupied, then NY State law also requires that the lender send a notice within 90 days to the borrower. This informs them of how to cure the debt and a “Help for Homeowner” notice advising them of their rights during the foreclosure. This 90-day time period runs in tandem with the 120-day period. If still unresolved after 90-days the lender can begin the pre-foreclosure process.

Summons and Complaint Letter

Once this has happened you will receive a “summons and complaint” letter informing you that your loan is in default and a lawsuit is pending. Once this is received you (the borrower) will have 20-30 days to respond in writing. If you haven’t already, now is definitely the time to talk with an attorney who can help you with the reply and represent you in court.

The New York Foreclosure Process

Because New York is a judicial foreclosure state the lender must go through the court process to foreclose. After the issue of the summons and complaint letter, you are allowed to reply with a defense and counterclaims.

An important safeguard that homeowners process is the settlement conference. Introduced in 2009, this was added to the foreclosure process to help the two parties find an agreement regarding the debt. It is held 60 days after the date when the summons and complaint were sent.

If no agreement is reached in the settlement conference and you don’t respond to the court action within the specified time the lender can move to get a default judgment from the court. If this happens then you automatically lose the case. However, if you file an answer the lender can’t file for default judgment. The lender will next file for a summary judgment to strike the answer and for the court to grant judgment in favor of the lender. If summary judgment is denied, then a trial will occur. If summary judgment is granted or you lose the trail the judge will sign a final judgment of foreclosure and sale against you. The lender will now be free to sell the property.

Reinstatement

New York law allows the homeowner to reinstate the loan at any time before the final judgment. This is when the borrower agrees to pay the past-due amounts along with any costs and fees to bring a delinquent loan current. If done, then the foreclosure ends, and you can return to making your usual monthly payments.

Talk with a foreclosure attorney as soon as possible if you are facing foreclosure. They’ll fully explain your rights and provide mitigation options.

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How Long Does an NYC Renovation Take?

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There’s nothing quite like a renovation to breed new life into your home or christen a new one. But they don’t come cheap, and New Yorkers have a record of splashing out far more than their Midwestern counterparts. And why not? A top-to-bottom renovation ensures not only less maintenance but also an increase in the home’s value. Coming up with a rough idea of how much it will cost is the first question to tackle. Once arrived at, the next one will be “How long will it take?”

 

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Bolster, an NYC based design-build firm has come up with a way to remove some of the guesswork. After analyzing two years of data on completed projects they made some interesting finds. For starters, in the first quarter of each year, there is always a jump in interest from homeowners looking to start a renovation in the summer. However, the data also showed that there is a lot of variation in actual start and finish dates. The biggest variable being the design process. Depending on the scope of the project it can take anywhere from one month to over a year before the work even starts.

NYC Renovation Schedules

Property TypeDesign ScheduleBuild ScheduleTotal ScheduleMinimum1 Month5 Months6 MonthsAverage6 Months7 Months13 MonthsMaximum14 Months12 Months26 Months

The design phase

When putting your design team together the quality of the people chosen will, naturally, affect the speed of the project. Many homeowners make the mistake of trusting their expeditor to keep everything on track. However, Bolster’s data found that what has a more significant impact is choosing an experienced architect. Hire someone who has experience with your type of property. And also understands how to work with the government agencies and building management whose approvals will be needed.

Property type

The next thing that impacts on the length of your project is the type of property you live in.

Co-ops – expect some tough negotiations and delays if your building is a co-op. The board can be a nuisance with delays, especially if they meet infrequently and there’s no precedent for the type of renovation you’re doing. If the building has an alteration agreement, this can certainly help speed things up.Condos – condos face the same difficulties as co-ops though not as extensively. Condo boards tend to be more relaxed than co-op boards.Landmark Properties – if your building is landmarked you could be in for a big headache. The project will be subject to a public hearing. Which can be a frustratingly open-ended process and depend on the attitude and knowledge of the review officer.Brownstones – by far and away, brownstones present the least delays in the design phase. There’s no board or building architect that you need to get around, but they sometimes do present logistical challenges. For instance, the lack of an elevator makes transporting materials more troublesome.

 

Renovation Schedules by Property Type

Property TypeDesign ScheduleBuild ScheduleTotal ScheduleBrownstone5 Months8 Months13 MonthsCo-op7 Months6 Months13 MonthsCondo7 Months6 Months13 MonthsLandmark6 Months6 Months12 Months

The scope of the work

Naturally, the scoop and type of the renovation will dramatically affect its timeline. Any changes to the HVAC, plumbing or electrical systems will mean more regulator challenges and delays. So avoid tampering with them if possible.

Rooftops – any changes to the rooftop tend to add the longest timeframe to a renovation, 20 months on average. Because they involve a degree of danger and are subject to weather changes which require better planning and construction.Apartment Combinations – this requires specialists to ensure they don’t run into any structural problems. Complaints from neighbors who are concerned about safety and cleanliness can also cause delays.Gut Renovations – strangely enough, gut renovations tend to take less time than rooftop or combination changes. However, they also mean greater scrutiny by the Department of Buildings and building management. Which means delays as revisions are made.

 

Renovation Schedules by Project Type

Property TypeDesign ScheduleBuild ScheduleTotal ScheduleRooftops13 Months7 Months20 MonthsCombinations8 Months7 Months15 MonthsGut5 Months7 Months12 Months

Summary

Like your budget, your timescale is very likely to go overboard when it comes to renovations. Some minor changes only take about six months. More extensive modifications such as a gut renovation can take over a year. While even more, extensive changes can take as much as two years. The more you’re spending, the longer you can expect it to take. Apply the same due diligence with design and planning as you do to your budget and you should arrive at a reasonable estimate.

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Think About Resale Value Before Buying an NYC Apartment

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It is never too early to consider the multitude of factors that influence how much your house or apartment will fetch when you decide to put it on the market. In fact, it is wise to take stock when you are searching for a home that suits your needs. Although it seems premature, one day you or your heirs will be selling the property. A “bargain” now may turn into a nightmare if it is difficult to unload your property due to a lack of appeal.

 

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We examine the primary considerations that affect resale value. In particular, we focus on New York City real estate. After all, items such as lot size and curb appeal may be on the radar of buyers; it is not the sole factor for city dwellers. Of course, if you are searching for a home in one of the outer boroughs, this may come into play, depending on the neighborhood. We are focusing more on Manhattan and urban areas in the outer boroughs.

Location, location, location

It may be a cliché, but it is the most important issue relating to resale. However, there is a multitude of things to contemplate under this broad category. Nor is it a matter of merely buying in the most expensive neighborhood. For instance, there have been many neighborhoods in Brooklyn and Manhattan that have seen a revival over the last several years. Nonetheless, a smaller house in a more affluent area will fetch more than a large home in a more modest neighborhood.

Some qualities make a location more desirable. Foremost is the quality of the schools, making it a key consideration even if you do not plan to have children. There have been several studies tying the quality of schools to the price of homes in the neighborhood. For instance, a recently conducted research showed buyers paid an additional $50 per square foot for homes in top-rated school districts compared to those that are located in average-rated ones. The study is based on over 400,000 sales in about 1,000 school districts across 57 metropolitan markets.

Frequently, test scores considered as the primary basis for the ranking. There is a wealth of information online as well as websites that crunch the numbers. For instance, schooldigger.com provide ratings on New York City school districts.

Several other important criteria make a particular location desirable. These include being on a quiet street, a sense of community, the ability to walk to amenities such as shopping and schools, proximity to parks, and access to public transportation. A view may also be considered essential.

The neighborhood’s zoning should be checked. Although it may not be an issue currently, it could go down the road if certain businesses are allowed. This could create undesirable noise and even pollution.

Choose the Right Neighborhood

Location, location, location – a feature so important, it’s repeated three times in real estate circles and this article. If you truly want the most bang for your resale value while also enjoying your home or apartment while you live there, then you need to choose a great neighborhood along with a great property.

Keep in mind that less than desirable neighborhoods might have the beneficial factor by the time you’re ready to resell. Neighborhood gentrification usually takes five to 10 years depending on the area, so if you’re only planning on living in the apartment or house for a few years before selling, the neighborhood might not reach desirable status yet.

Make Sure Your Curb Appeals

A make or break deal with many homebuyers is curb appeal, so make sure your home is just as beautiful on the outside as it is on the inside. This means a well-constructed with desirable architecture, well maintained from the curb and through-out.

If you’re reselling your apartment, curb appeal plays a significant role. An apartment buildings exterior condition is out of your control, so make sure you choose an apartment in a building with an attractive façade and entrance.

Taking a tour of the inside

Once you have determined the right neighborhood, it is time to examine the apartment. Of course, it will have to meet your current needs and those that may arise over the next few years. It is also wise to contemplate which features will appeal to future buyers down the road.

Square footage is a consideration, but an open layout also weighs in. Still, previous owners liked the privacy of closed off spaces, showing that tastes evolve. However, it is usually an easy fix to create the desired outcome. Regarding bedrooms, although “more is better” is accepted wisdom, it is not always right when apartment hunting in NYC. The difference in price by going to a three bedroom from a two bedroom apartment is not nearly as significant as increasing from a one bedroom to two bedrooms. Three bedroom apartments are competing with single-family homes.

Some amenities will be attractive to future buyers that will likely stand the test of time. Aside from a spacious, open concept, storage space is essential. Counter space and closets will also be looked upon favorably by future buyers. An updated kitchen is also an excellent attraction, but we will discuss that under the Upgrades heading.

Avoid Too Much Character

Something that you consider charming or unique about a property might not be as attractive to another buyer. So, if you’re buying an apartment with the chance of reselling it in the future, then you should avoid properties with too much character.

Classic architecture and vintage details that match the property’s overall design are all part of the home’s original concept and will add to the resale. But “funky” layouts such as a kitchen you have to walk through to get to the master bedroom and glass brick bathroom walls might hurt the resale value. Look for great bones.

Upgrades: Not all are created equal

After making the purchase, you may very well decide to make renovations. Specific remodeling jobs will add more value than other ones. Kitchens and bathrooms have long been noted to pay for themselves regarding the ability to fetch a higher price when owners decide to resale. The updates do not need to be major overhauls. Simple things like replacing the caulk, updating the hardware on the cabinets, and replacing the faucets can make a difference.

There are other things you can do to increase the value of your home. A well-lit space, including natural light, more efficient heating and air conditioning, and flooring are all items that can boost your home’s value, aside from creating open spaces,

This does not mean you should neglect routine maintenance. It is imperative to keep up with repairs. Little problems like a leak can turn into major ones. A well-maintained home will be an attractive site for future buyers.

Upgrade Where it Counts

If your new home needs some renovations, make sure you upgrade in the areas where it’ll result in a return on your investment. The two most significant returns on your investment are remodeling your kitchen and your bathroom.

Just remember the character tip above during your remodeling adventures and avoid any designs that are over the top. Granite countertops and stainless steel appliances in the kitchen are always a good choice, and simple tiles alongside muted colors in the bathroom are also wise when redesigning.

Remember A Good View Goes a Long Way

As a homeowner, you can change paint colors, upgrade appliances, and install hardwood floors, but you can never replace the view from your living room window. Neither can future homebuyers, which is why it’s important to make sure you have an exposure that positively speaks for itself.

Other considerations

There are other things to consider, which may seem small but will matter to future buyers. You will need to look into the history of the apartment. For instance, if there has been mold, even if it has been remediated, it could turn off some buyers. If the condo is a fifth-floor walk-up, that presents an inconvenience, especially to the elderly or those with little children.

Amenities such as a gym in the building and a doorman are nice features to advertise.

Summary

There is a host of factors to consider when purchasing an apartment. For instance, new construction may cost more, but will future the newness wear off when you decide to move? An agent can be of great assistance. After all, he or she does this for a living, while you will only buy a home a couple of times during your lifetime. A buyer’s agent may be in the best position to help since he/she is seeking to put you in the optimal home, while a seller’s agent is likely trying to maximize price and his/her commission.

If you’re considering purchasing an apartment in the New York City area, then you’re already thinking about your future. But, if selling your home down the road is in the cards, then you need to remember regarding potential buyers, as well. With fruitful reselling in mind, here are some things to consider when it comes to the resale value of your new real estate purchase.

 

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Legalities of Renting Your NYC Apartment on Airbnb

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If you’ve been following the local news recently you may be aware of the current spat between Airbnb and NYC’s Comptroller Scott Stringer. In a report released in May, Stringer stated that Airbnb is responsible for nearly 10% of rental increases in NYC between 2009 and 2016. The home sharing site has been on the defensive since then and even answered Stringer’s report with an open letter from Airbnb’s head of global policy. One thing for sure, the controversy over the exact impact of Airbnb on the NYC housing market is sure to continue.

 

 

All that said, homeowners shouldn’t let the controversy put them off using the site. It can be a valuable source of income, and it’s helped many NYC residents avoid foreclosures. Just make sure you do it legally. The new requirements on home sharing have been a cause of confusion for older users and newbies alike. Here’s what you need to understand about listing your NYC apartment on Airbnb.

So what’s the deal?

The reasoning for the new laws is that most Airbnb rentals were found to be violating both state and local laws. Many building owners, it appears, were renting out multiple units at the same time. This effectively turned them into hotels while allowing the owners to avoid paying for a pesky hotel license. In response to this, Airbnb no longer permits hosts to have more than one listing at the same address. But hosts can still have listings at different addresses.

Under the NY State Multiple Dwelling Law (MDL), which covers buildings with three or more units, rentals of fewer than 30 days are prohibited. Unless a permeant resident is present for the time, the guest is staying. Take note; this permeant resident must be a “natural person.” Meaning a human being, which eliminates corporate hosts. To be legal, these units must be occupied by the same person or family for no less than 30 consecutive days.

To summarize, the MDL does not prohibit:Hosted short-term rentals where the human host is presentShort-term rentals, whether hosted or not, in private dwellings such as one and two family homesRentals of 30 days or moreFines for MDL violation

The Mayor’s Office of Special Enforcement is responsible for enforcing the MDL. They respond to complaints and can impose fines for violations of up to $2,500 per day. Along with that, NYC enacted a new law in 2016 making it illegal to list a short-term rental prohibited by the MDL. This applies to sites like Airbnb. A first-time violation means a fine of $1,000, for the second, $5,000, and for the third or more, 7,500

Other restrictions

Even if you check out on the MDL, there are still other laws you must be aware of. Make sure you also check off these boxes before listing that room.

NYC Certificate of Occupancy – in NYC, all residential buildings must have a certificate of occupancy. Any change in the status of the building from long-term residential to short-term transient will require an amended certificate. Once filed an inspection must be undergone before approval.Rent Control Laws – those in rent controlled or stabilized housing may not have permission for short-term renting. Contact your local rent board first as violations could lead to an eviction.Zoning Laws – check the NYC Zoning Code to see if you live in an area in which transient (short-term) rental buildings can be located.Lease Restrictions – lease agreements for market-rate renters usually prohibit subletting of any kind without permission from the landlord. For co-ops and condos, it’s the same. In the case of cooperatives, it’s a very long shot getting permission for this.

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How to Deal with Secondhand Smoke in your NYC Apartment

As every New York resident knows, apartment living can present a lot of challenges. Especially when your neighbor’s actions affect you in negative ways. Secondhand smoke is one of the worst because it presents peculiar difficulties in resolving the issue. If you have respiratory problems such as asthma, are concerned about the health effects or just don’t like the smell, there are some things you can do.

What does the law say?

There is no law that specifically prohibits a tenant from smoking in his or her home. However, in recent years some owners have implemented a strict no smoking policy in their buildings. Violation of which could be cause for termination of a lease or rental agreement.

Under NYC’s Smoke-Free Air Act, smoking is prohibited in common areas of buildings with 10 apartments or more. One such restriction that applies to all multiplex buildings prohibits smoking in a playground area whenever any child under the age of 12 is present.   For more information and recourses, Smoke-Free Housing NY has a wealth of information for tenants throughout the state. So, what should you do when facing this problem.

Check your lease or rental agreement

If you thought ahead and carefully read your lease agreement before signing you should find a smoking policy in it. For those who live in condos, you should go to your Home Owners Association (HOA) to see what restrictions they have on smoking in the building. If you live in a co-op, the board can provide you will all the information you need.

Document the problem

The more documents you can gather on the problem the better your chances of getting it dealt with. Write down specific details each time smoke enters your apartment. Make a note of the date, time of day, location and any health effects to you and other household members (coughing, asthma, breathing problems etc.). Keep a detailed record of all this and do not delay in recording them as you may not remember all the details.

Raise the issue and find a solution

Once you’ve documented things thoroughly enough, talk with both your owner/managing agent and neighbor. Keep things friendly and look for a constructive solution. It’s also a good idea to document each of these conversations. Perhaps your neighbor could agree to only smoke by the window and use a fan to keep smoke out. Or the owner/managing agent could take steps to solve the problem. For instance, sealing any cracks or gaps between the apartments and/or investigating the ventilation system.

If your building owner refuses to help or try’s to and fails, you might consider consulting an attorney on your legal rights. Depending on the situation, you might have the right to break your lease because of the health effects. If the issue is particularly severe you could consider bringing a lawsuit against the property owner. Second-hand smoke may constitute a nuisance and disrupt your right to the free enjoyment of the apartment. Although some courts have ruled in favor of the tenant, keep in mind that these cases are difficult to win, costly and time-consuming. Always consult your attorney before making any decision like this.

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Roles Your Attorney and Real Estate Agent Play When Buying a Home

Real estate agents and lawyers are integral parts of the New York home buying experience. It is important for buyers to know the specific roles for each in order for you to address your concerns to the right party.

 

 

Real Estate Agents

We have discussed the importance of an exclusive buyer’s agent, and his/her fiduciary duty owed to you. The agent is your initial contact, and hiring one is a very important decision for the buyer. He/she helps you formulate your budget, discuss your options, and the differences between wants and needs to assist you in targeting the right desirable properties.

Your agent also knows the different neighborhoods, buildings, and the current market, and he/she can help you formulate an offer based on this expert knowledge. This is an integral part of the process, including looking at comparable sales. But, this is not as easy as it seems, and there is also a certain art to making an offer. An exclusive buyer’s agent must use his/her knowledge to help you obtain the best price. There is also more to your offer than the price, such as which items to include or exclude, and your agent can advise you on whether you should include contingencies (generally, the fewer, the better, but he/she is in the best position to judge individual circumstances), or waive others such as the mortgage contingency clause.

Following your initial offer, you could receive a counter offer, and your agent will advise you on the next course of action. If there is a bidding war, your agent knows how to handle this situation. Your agent will also let you know when he/she thinks it is best to drop out of the process.

At this point, your agent and you start the search process. When you find a property and have your offer accepted, you then have an inspection. Your agent can recommend qualified home inspectors, and even accompany you while the inspection is conducted. At this point, your lawyer takes a more prominent role.

Real Estate Attorneys

Your agent and attorney work together to negotiate any issues that arise from the inspection. Then, your communication will shift more towards your attorney, whom you may have hired based on your agent’s recommendation.

Typically, in New York, the seller’s attorney sends over the contract’s first draft. The documents are sent back and forth between the lawyers as the parties hammer out the terms. This includes the amount and timing of the down payment, which your lawyer will segregate in an escrow account, along with the closing date.

Your lawyer conducts due diligence on your behalf. He/she orders a title search to make sure it is “clean,” along with working with you to ensure you have the proper documents to send to your lender within the required period. He/she disperses the funds to the various parties, such as the amount due to the seller and the corresponding amount to the seller’s lender, the title company, the agents’ commission, particularly at closing.

Lastly, your lawyer reviews and advises you regarding the closing documents. Once you sign these forms, he/she hands you the keys, and you are a proud homeowner.

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A Tenant’s Defenses from Eviction in New York

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We previously wrote about a landlord’s responsibilities, which include when he/she can evict a tenant. Flipping it around, if you are a tenant, you should know the circumstances a landlord can legally evict you, and the proper procedures he/she must go through. If these are not followed, you have specific legal defenses at your disposal.

 

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Why a landlord can evict you

In New York, the most common reason for eviction is the non-payment of rent. Another popular eviction cause is lease violations. The landlord cannot put anything in the lease that is a violation of federal or local laws. For instance, the owner cannot evict you for having children. Additionally, the property owner cannot force you to waive your right to warrant of habitability.

You can violate the terms of your lease by having certain appliances that are explicitly not allowed or subletting when this activity is forbidden. However, in these situations, the landlord needs to follow the proper process and provide you with the required notice.

Non-Payment of Rent

Your first defense, if the landlord is evicting you due to the non-payment of rent, is that you were not given proper notice. He/she must provide you with three days notification. The notice needs to state explicitly that you have three days to either pay the rent or move out. If you simply do either action, you have avoided an eviction. But, if you do not do either, your landlord can start eviction proceedings. Should you not receive the required notice, you have a legitimate defense.

Similarly, for evictions due to lease violations, the landlord is required to give you ten days notice. During this period, you can fix the violation, and the eviction cannot proceed. If you do not do so within the prescribed time frame, in order to evict you, the landlord has to provide a notice of termination. This must provide you at least 30 days to move out. Should this period elapse, the landlord must file an eviction with the court.

Failure to Maintain

Aside from the time requirements, you have a legitimate defense if your landlord failed to maintain your unit in the proper condition, including making necessary repairs. If he/she does not do so, you can either withhold the rent until the repairs are done, or fix the issue yourself and deduct it from your rental payment. You cannot get evicted should you do either one.

The landlord cannot take matters into his/her own hands. This means he/she cannot make it inhabitable or block your access, even if you have not paid the rent. Forbidden actions include turning off the utilities, removing the doors, or changing the locks. If he/she takes an illegal action, you can sue your landlord.

Eviction Process

New York’s eviction process is arduous. The landlord must make a filing in court. This is even more inconvenient if he/she lives outside of the city since the petition’s filing must take place in the county where the rental property is located. The judge assigns a hearing date, listens to both sides, and makes a ruling. This is a time-consuming process, though. Failure to follow these steps may cause the owner’s eviction invalid. This is not a defense, but a delay tactic. The landlord can fix his/her actions to make it valid.

If you feel the owner is evicting you because of your race, religion, gender, national origin, family status, and disability, then your landlord has violated the Fair Housing Act. New York State and New York City have added prohibitions against discriminating on the basis of creed, age, sexual orientation, gender identity, military status, and lawful occupation and sources of income.

The post A Tenant’s Defenses from Eviction in New York appeared first on | ELIKA Real Estate.

Why You Need a Real Estate Attorney When Buying a Home in NYC

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Buying a home will be one of the most important decisions of your life. It will involve not only a large sum of money but also the intricacies of real property law. This makes a home purchase stressful, and without professional guidance, things can quickly go wrong. Hiring a buyer’s agent will overcome many of these hurdles, but a real estate attorney is just as vital and, in NY State, mandatory.

 

 

Why you need a real estate attorney

Each state has its own set of real estate rules. For most of them, a real estate attorney is not required. New York State though is one of several in which law requires their physical presence in a real estate transaction. A broker can help you with a lot of tasks that border on legal areas, but only an attorney is allowed to prepare the home purchase documents, perform due diligence, a property title search and close the deal.

Even if it weren’t a requirement, you’d still want to have one. Real estate transactions can be complicated and involve a significant amount of paperwork and interested parties. If something goes wrong and legal issues arise an attorney will be needed to sort things out.

What can a real estate attorney help with?

In a typical home purchase, the buyer or buyer’s agent either finds or is found by a real estate broker representing the sellers. A tour of the home is scheduled, completing a comparable market analysis, negotiations are handled through the broker(s) and once an agreement is reached buyer and seller enter into a legally binding contract of sale. If the buyer is taking out a mortgage, a title search will be done to satisfy the lender. Finally, the property title is transferred, and money is exchanged.

Summarized like this a home purchase seems pretty straightforward but many things can go wrong. If something does and a lawyer isn’t present the results can be disastrous. Your real estate attorney will be there to handle any legal disputes and ensure the transaction goes smoothly. Among other things, a real estate attorney will be responsible for the following:

Attorney Services Rendered

Compiling Legal Documents – some documents can only be drawn up by an attorney. Probably the most important is the contract of sale. If the buyer has any special requirements or problems are found in the home inspection, or later the purchase agreement has to include provisions for this.
Reviewing Documents – there will be a lot of documents going back and forth. The attorney is there to review each one for vague language and unclear terms that can create legal problems. If you need to sign something have your attorney look it over first.
Provide Consultation – property law can be dense and be intimidating for the uninitiated, even for brokers. A real estate attorney can provide consultation and advice for essential questions. For instance, what the tax consequences of a transaction would be.
Conduct Due Diligence – in NYC, due diligence is conducted before the property goes under contract. Your attorney will review the building financials, board minutes and look into whether there are any outstanding liens against the property. Additionally, if any defects could mean a price reduction and all else that could affect the sale of the property including the potential increase in common charges/maintenance costs.
Title Search – after a purchase agreement is signed the state of the seller’s title to the property must be established. An attorney will either do this or review the title abstract or title insurance commitment.
Close the Sale – at the closing, the deed and other closing documents must be drawn up. Both attorneys, from the buyer and seller, must be present for this. They’ll explain the nature, amount and fairness of the documents and closing costs. There may also be last minute disputes which your attorney will handle and ensure your rights are protected.

 

If you feel peeved that hiring an attorney is a legal requirement in NYC for a home purchase, don’t be. They ensure a much smoother transaction and help to solve the legal disputes that are almost guaranteed to happen.

 

The post Why You Need a Real Estate Attorney When Buying a Home in NYC appeared first on | ELIKA Real Estate.