Working With a Real Estate Agent
In New York, real estate agents may act as a buyer"s agent, a seller"s agent, or may represent both parties to a real estate sale as a dual agent. Real estate agents must disclose agency relationships to potential clients. Real estate agents have wha's called a"fiduciary duty" to the party who they are representing, in this case, the buyer. In New York, this means that a buyer's agent has, without limitation, the following fiduciary duties to the buyer:
In dealing with the buyer, a buyer's agent should exercise reasonable skill and care in the performance of the agent's duties; deal honestly, fairly and in good faith; and disclose to the seller all facts known to the agent materially affecting the buyer's ability and/or willingness to perform a contract to buy the seller's property that are not inconsistent with the agent's fiduciary duties to the buyer.
Under New York law, a seller must disclose to the buyer the following potential house defects:
Purchase Agreements
When you find a house you'd like to buy, you'll put together and sign a purchase and sale agreement, which is the contract that contains all of the terms of the sale, including the following:
The transactions involved in purchasing a home give rise to a number of legal questions that a real estate lawyer with experience is best equipped to answer.
Inspection
It's always a good idea to hire an independent home inspection service before you buy a house. You can make your offer contingent on inspection.
An inspection should include a general home inspection for structural defects as well as an evaluation of the condition of the roof, foundation, drainage, plumbing, heating system, central air-conditioning system, visible insulation, walls, windows and doors; a pest inspection to see if the house have been infested with termites or other pests; and a radon inspection.
Legal Title Issues
A real estate lawyer or title company will investigate the legal title of the property you want to buy, and may find legal title issues you'll need to understand.
In New York, for example, an implied easement may be present where the use of the property continues for a certain period of time. An example of an implied easement is if a neighbor has been crossing your property consistently for several years in order to get to their property and you, as the actual owner of the property, have not challenged that use. The neighbor may have acquired a prescriptive easement to continue to cross the property in the same manner.
The property you're interested in may also be subject to a lien which is a charge on the property to satisfy a debt or other obligation owed by the current owner of the property that has been recorded in the public records.
Every state permits a person who supplies labor or materials for a construction project to claim a lien against the improved property. While some states differ in their own definition of improvements and some states limit lien claims to building or structures, most permit the filing of a document with the local court that puts parties interested in the property on notice that the party asserting the lien has a claim.
In New York, liens on a piece of property may include:
Closing Costs
The charges you pay will vary among lenders, so it pays to shop around for the best combination of mortgage terms and closing costs. In New York, you may have to pay the following charges called closing costs at the time you purchase your home:
Mortgages
At the time of purchase, you'll sign a promissory note that legally obligates you to pay back the money you borrowed to buy the house. A promissory not is, in effect, an "IOU." You promise to pay your lender the full amount, payable in equal monthly installments, at the interest rate previously agreed upon. Your lender will keep the original until you completely pay off the loan.
The mortgage is the security instrument or contract by which you name your house as the collateral to secure the repayment of your loan. The lender's right to foreclose on the loan and to have your house sold, to pay off the loan, if you fail to make your payments is found within the terms of the mortgage.
It's a good idea to shop around and get the best possible deal on your loan, because loan terms vary from lender to lender.
Private Mortgage Insurance
If you put down less than 20% on a home mortgage, lenders often require you to have "private mortgage insurance (PMI)" . That way, if you default on the loan, the lender can recover his money because with little equity on your house, a foreclosure sale might not bring enough money to pay off your loan plus cover the costs of the foreclosure proceeding.