Commonly Asked Questions:

A contract of sale is an agreement for the purchase and sale of real estate. The contract is usually prepared by your real estate broker and is a standard form contract, which is submitted to your attorney for further refining.

Following the signing of the initial contract of sale by both parties, you will have three business days to have the contract reviewed by their attorney. During this time period, your attorney will review the contract and prepare what is called a rider or letter addendum to the contract. The rider will create additional provisions to the contract, addressing any issues that have not been already addressed by the initial contract. Representing a Buyer, this firm, as your attorney, would try to extend the deadlines for your mortgage commitment and inspection report, as well as giving you the most flexibility to get out of the transaction, if your inspection report is unfavorable or if you are unable to secure a mortgage.

If you are buying a condominium, co-op or a townhouse, this firm will put in a provision requesting copies of important documents, including the Master Deed, Bylaws as well as the House Rules of the Condo Association, in addition to the financial documents, including a budget, and/or financial statements, which will show the financial stability of the building.

Once the attorneys and their clients accept each other’s newly added terms, the attorneys will sign off on the final Rider and inform all parties that attorney review is concluded. All time periods (for the mortgage contingency and inspection results) will start from this date (not the date you signed the initial contract with your broker).

There are several things you are responsible for between attorney review and closing:

1. Inspection
A structural home inspection is not required but is generally recommended if you are purchasing a home. It will provide you the opportunity to accompany the inspector around the property and learn recommended maintenance for your new home. Depending on the age and condition of your building, you may choose to get inspections in the following areas: termite radon, septic, well, home heating oil tank, and/or lead paint. A structural inspection generally runs about $300-$400 for a one family home or condominium. This is an out of pocket expense that you pay directly to the inspector. You will work with your real estate broker and the seller to coordinate this.

You will generally have 10 days to complete the inspection and submit the results to the Seller’s attorney. You should schedule an appointment with an inspector immediately following attorney review. Any defects will be submitted by your attorney for the Seller’s attorney to address, usually with a credit at closing or an arrangement to repair of the defect. Our firm can provide you with names of licensed home inspectors.

2. Title Insurance, Title Searches and Survey
You will be required to purchase title insurance for your property, which is an insurance policy that covers your ownership interest and the mortgage interest of your lender. Title insurance prices are state regulated – you can contact our firm for more information. This firm, as your attorney, would order the insurance in conjunction with the title searches from a licensed title agency. Searches cost approximately $400 - $500. This will show any judgments or liens against the parties or the property itself, including mortgages for the Seller or tax liens.

Your mortgage company will generally require you to have a survey done for the property, which will be ordered by the title company. A survey for a one family house costs approximately $600 and a survey certificate for a condo costs approximately $225. Title insurance, title searches and the survey costs are paid at closing.

3. Mortgage costs
Mortgage closings costs vary by the mortgage company. You are advised to speak to your mortgage broker about their specific costs/fees. Some companies collect fees upfront and others are paid at closing. It is wise to contact multiple mortgage companies to compare rates. This firm can provide you with contacts at reputable mortgage companies.

4. Insurance
If you are purchasing a one or two family home (not a condo, co-op, or townhouse), your mortgage company will require you to purchase a one year policy for homeowner’s insurance and provide a paid receipt. This must be paid prior to closing.

5. Condominium Association fees
Most condominium associations require a non-refundable three month capital contribution to be paid at closing to the Association as well as the first month's maintenance.

6. Taxes
You will usually have to pay the property taxes for the upcoming quarter at closing.

7. Attorney’s Fees
Attorney’s fees are paid at closing. Please contact this office directly to find out the rate for the purchase of your future home.