Residential Real Estate Transactions

While New York does not legally require an attorney for real estate transactions, it is standard practice, and strongly advised, for both buyers and sellers to have their own counsel. Buyers typically pay a minimum 10% deposit at contract signing and the contract dictates events where a buyer forfeits this deposit and events when a buyer can terminate and receive a refund of the same. New York real estate contracts are typically drafted by the seller's attorney and are designed to protect the seller's interests. Having your own attorney means someone is reviewing every provision, conducting due diligence on the property and building, and protecting your rights from contract signing through closing.

We understand that buying your first home, especially in New York City, can feel overwhelming and can be one of the largest financial decisions in one's life. Our team walks first-time buyers through every step, from explaining what to expect during contract review to preparing you for closing day. We take the time to answer every question, no matter how small, because we believe an informed client is a confident client. Many of our five-star reviews come from first-time buyers who felt supported and cared for throughout the process.

The key difference is the ownership structure. A condo is real property and when you buy a condo, you own the physical unit itself and receive a deed at closing. Condos tend to have more liberal governance structures than co-ops and may be more flexible with leasing and ownership structures (like LLCs, etc.), but come with higher purchase prices (and closing costs) though often permit higher loan amounts.

When you buy a co-op, you're purchasing shares in the corporation that owns the building. The corporation issues a proprietary lease that gives you the right to occupy the apartment you purchase. Co-ops typically have more restrictive board approval processes, may limit subletting, but may have lower purchase prices (and lower closing costs).

Both types of properties are governed by a centralized Board elected by the shareholders or unit owners in the building (typically at an annual meeting). The Board is responsible for determining monthly fees and assessments for repair projects and maintaining the building.

Our attorneys can walk you through the legal and financial implications of each to help you make the right decision.

Due diligence is the research our attorneys conduct before you sign a contract. It's one of the most important protections in any transaction as buyers assume the risk of discoveries that may arise in due diligence. For co-ops and condos, our review includes the building's financial statements, board meeting minutes, management questionnaire, and offering plan, as well as examining public records from city agencies like the Department of Buildings, HPD and the Department of Finance. We look for red flags such as pending litigation, underfunded reserves, planned assessments, building violations, and resident concerns that may impact your ownership or your loan. This process gives you a complete picture of what you're buying into and the type of governance structure you're assuming, not just the apartment itself.

Yes. HDFC (Housing Development Fund Corporation) co-ops are income-restricted buildings with unique resale requirements, including income caps for buyers, flip tax provisions, and approval processes that differ from conventional co-ops. Our team has experience navigating the specific compliance requirements for HDFC transactions, including working with managing agents and boards to ensure a smooth closing for both buyers and sellers.

Yes. Residential transactions in NYC also encompass single family or multi-family homes. Lenders will typically qualify a 1-4 family home as a residential loan if there is no commercial occupancy. When representing buyers and sellers for single family and multi-family homes, we review city agency records to determine the historical and permissible use, tax status and any leases prior to negotiating the contract. During the contract phase and prior to closing, we facilitate title and survey clearance and help to resolve any contingencies.

Due diligence for a home purchase involves a different set of considerations than a co-op or condo. We review city agency records to determine the property's historical and permissible use, tax status, and any existing leases prior to negotiating the contract. During the contract phase and prior to closing, we facilitate title and survey clearance and help resolve any contingencies.

One of the most important diligence items is the home inspection. As ownership of a home requires full maintenance of the structural, electrical, mechanical and HVAC components of the building; an inspection provides a homeowner with any blind spots that may need repair or monitoring. The inspection should be conducted prior to contract signing as inspection contingencies are not common in NYC. Once an inspection is completed, any unexpected repair costs or issues may be addressed in the contract price or terms.

The timeline from signed contract to closing is typically 60 to 90 days for most residential transactions, though this can vary. Co-op purchases often take longer because of the board application and interview process, while all-cash transactions without financing contingencies may close more quickly (~30 days or less). New development purchases follow their own timeline, dependent on specific contract milestones driven by construction status, the sponsor/developer, and various city agencies. We set clear expectations to ensure your timeline is as predictable as possible and keep you updated as things progress.

Closing is the final step where ownership officially transfers. For buyers, this involves signing loan documents (if financing), transfer tax forms, the deed or stock and lease (for co-ops), paying closing costs, and receiving your keys. Our attorneys attend the closing, review all documents, and coordinate with the seller's counsel, your lender, and the title company to make sure everything is in order. Most residential closings take about 2 hours, though the timeline can vary depending on the complexity of the transaction.

Closing costs in New York City vary significantly depending on whether you're buying or selling, whether the property is a co-op, condo or home and whether you're financing the purchase. Buyers should expect costs that include attorney fees, title insurance (for condos and houses), mortgage recording tax (if financing a condo or house), and the NYS mansion tax on purchases over $1 million. Sellers typically pay transfer taxes, flip taxes (if applicable), and broker commissions. We provide a detailed closing cost estimate early in every engagement so you can plan accordingly.

A CEMA stands for a Consolidation, Extension and Modification Agreement and is a method to help parties save on the NYC mortgage recording tax which can range from 1.925% (residential) to 2.55% (commercial) of the loan amount. We facilitate CEMAs for refinance and purchase transactions of real property (condos and homes). There must be an existing loan on the property and both the existing lender and new lender must approve various components of the CEMA process for a CEMA to be successful.

For our investor clients, a 1031 exchange is a tax deferral method that allows investors to defer capital gains taxes by re-investing proceeds from an investment property sale into a replacement investment property. We work with qualified intermediaries to assist clients in a 1031 transaction.