4 years ago

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/

In today's video, we will demystify what happens after your offer is accepted. I'm Chris at Hauseit. If you're not familiar with the platform, Hauseit is the largest For Sale by Owner and Buyer Closing Credit company in New York City.

You can learn more by checking us out below www.hauseit.com hit subscribe. We do come out with regular content so please stay tuned. Now let's get started, so when your offer is submitted and then negotiated and then accepted what happens after? The first thing that happens is a deal sheet goes out.

A deal sheet is very simple. It's a transaction summary that outlines who the various parties are in the transaction. For example, the contact information of the buyer, seller and both attorneys as well as pertinent information about the transaction such as agreed-upon price, any contingencies and inclusions, exclusions, anticipated amount down and anticipated closing date. After the deal sheet is circulated, the most important consequence of this is all parties will be in touch with each other most importantly the lawyers representing both the buyer and the seller will be in touch with each other.

So when this happens, the sellers attorney will presumably have a draft purchase contract ready to go. The sellers attorney will then email the draft purchase contract to the buyer's attorney and then the buyers attorney and the sellers attorney will begin negotiating a specific language within the contract. Simultaneously, the buyer's attorney will begin due diligence on behalf of the buyer in New York City. For condos and co-ops there's quite a bit of specific legal and financial due diligence that is involved. For example in a condo and a co-op, there are annual audited financial statements. Sometimes unaudited as well for smaller buildings to be reviewed by the attorney.

The buyer's attorney will also review the original offering plan (much more relevant for newer buildings than old) and the buyers attorney will also review any other relevant documents such as a proprietary lease for a co-op and also the buyers attorney will typically make an appointment to review the board meeting minutes at the managing agents office. This is an interesting quirk. Many buyers will often leave it to the buyer's attorney to do all of this diligence themselves but we recommend it since you are actually buying the place to accompany your lawyer to the managing agents office to see the board minutes for yourself. Don't just leave it to your lawyer.

This is one of the best ways for you to determine who your neighbors are, what they're like, if there's any likelihood of litigation or if there is some behavior that you might not be comfortable with. It's one of the the best ways to get a feel for who, what you're getting yourself into. Another important thing that happens at this stage before a contract is signed but after an offer is accepted is to schedule a home inspection if you are buying a free-standing property.

Now we say that because it is quite uncommon actually for a home inspection to be ordered for a condo or co-op property, why do you ask? Well think about it: the typical co-op or condo building in New York City can be as many as a hundred two hundred units in size so you as a shareholder or individual a unit owner are only responsible for the interior of your apartment. In most cases, you're jointly responsible for the common spaces such as the roof and building boilers furnaces and such with all of your other neighbors.

As a result, the liability you might have for the rest of the building the common areas is quite minor and often times a co-op building for example may not even allow prospective buyers their home inspectors to visit some of the building elements such as the furnaces and boilers. One last thing that a buyer's attorney may do in the stage before a contract is signed but after an offer is accepted is to order a co-op lien search or a title search on behalf of the buyer. Now the question is how long does all of this take? Well, it really varies depending on negotiations but in a tight market or in a seller's market where the seller has more pricing power then the sellers may be able to demand buyers to sign a contract and wrap everything up within one week.

Save 2% When Buying a Co-op in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
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Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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