How to Buy an Investment Property in New York City

Investing in real estate has become a hot topic, and for those who can, investment properties are often one of the most stable and lucrative long-term investments today. The primary goals of an investment property are its income-producing potential as well as future capital return. While much media has focused on renovating and “flipping” real estate, the most stable investments are those kept over a period of time, offering passive income with a high degree of appreciation potential.

However, buying investment property in New York can be challenging, and investors should be knowledgeable of what it entails and the potential pitfalls that they may encounter. One way of doing this is to seek out the advice and guidance of a New York City real estate attorney and real estate agent who is well-versed and experienced in investment property purchases. At Sishodia PLLC, our attorneys can assist you throughout the entire process, from conducting due diligence and negotiating contracts to handling any legal issues that may arise. Contact us today at (833) 616-4646 to schedule a consultation and let us help you secure passive income through real estate in New York.

Is Buying Property in NYC a Good Investment?

As one of the most consistent investment locations in the United States for appreciation, New York City is one of the best places to own investment property for generating rental income. Given its history of recovering and flourishing after economic downturns, investing in New York City real estate is often considered a robust choice. 

The diversity of property types and neighborhoods in NYC allows investors to find options that align with their investment strategies and financial objectives. The city offers a broad array of properties to choose from, such as residential units, commercial spaces, or mixed-use buildings. In most cases, all an investor needs to have in their portfolio can be a couple of New York City apartments to see an appreciable cap rate. 

As a huge financial and business hub, Manhattan and the surrounding areas may not offer the best investment deals. The market in Manhattan is consistently high-priced and in great demand, and sellers are not nearly as motivated to work with a buyer as they may be in other areas because they simply don’t need to be. Moreover, it’s important to acknowledge that the NYC real estate market is subject to fluctuations. Economic trends, policy changes, and global events can all impact property values and market stability. This volatility means that potential investors should approach the market with caution and informed judgment.

While buying property in NYC can be a good investment, it requires careful planning, a clear understanding of the market, and readiness to manage potential risks. Your goals—whether you’re aiming for long-term capital growth, seeking rental income, or looking at short-term gains—will dictate the best strategies for your investment, making it a worthwhile decision.

Before making any important investment purchases, conducting extensive research and assessing your financial readiness to handle the ups and downs of real estate investment is crucial. It’s advisable to consult with a New York City real estate attorney who understands the local market dynamics and can provide valuable insights and guidance tailored to your specific situation.

Steps to Buying an Investment Property	Description
1. Determine investment goals	Define your investment objectives and desired financial outcomes.
2. Set a budget	Establish a budget based on your financial capacity and investment strategy.
3. Research the market	Conduct thorough market research to identify favorable investment areas and property types.
4. Find a real estate agent and attorney	Seek professional guidance from a knowledgeable real estate agent and attorney specialized in investment properties in New York City.

Up and Coming Neighborhoods and Boroughs

But there are many up-and-coming areas around the city that can be potentially suitable long-term investments for individuals, providing they are willing to make some repairs and renovations and have a little bit of patience. Looking at areas just outside of already well-established neighborhoods may still offer more reasonable pricing while piggybacking on their surrounding neighborhood’s popularity.

While the main goal for real estate investment is to buy low and sell high, there are some boroughs and neighborhoods that have greater long-term potential for the future. This results in less risk and downside volatility should that happen in the future and equates to a more optimal potential return on investment.

New York City REITs

Investors, both local and global, can participate in New York City’s real estate market through real estate investment trusts (REITs). Investors can take advantage of REITs to participate in the investment of commercial or residential properties, along with mortgage loans. What sets New York City REITs apart is their exclusive focus on prestigious commercial or retail buildings which are prime and in-demand pieces of real estate.

In essence, REITs provide investors with the ability to access a diversified portfolio of properties that are traded similarly to stocks. This arrangement ensures a consistent stream of dividend income since REITs are mandated to distribute 90% of their taxable income to shareholders annually in the form of dividends. Additionally, investing in REITs offers diversification opportunities. However, it’s important to note that REITs can be affected by risks associated with rising interest rates.

Prior to making any investment decisions, it is recommended to seek guidance from a New York City real estate attorney. At Sishodia PLLC, our attorneys have extensive knowledge and experience in the real estate industry. By consulting with us, you can make well-informed investment decisions. Take the initial step towards maximizing your real estate investments by scheduling a consultation with Sishodia PLLC today.

Using an LLC to Avoid Common Pitfalls When Investing in Real Estate in NYC

Investing in New York City real estate offers significant profit potential but is not without its legal and financial challenges. Establishing a Limited Liability Company (LLC) provides a strategic way to minimize these risks and protect your investment. An LLC offers significant protection by separating personal assets from business liabilities, meaning personal property and finances are shielded in case of lawsuits or debts incurred by the property.

One significant benefit of using an LLC in NYC is the limitation of personal liability. Should legal action arise from incidents at the property, such as tenant disputes or accidents, the LLC structure means that only the assets within the LLC can be targeted, not the personal assets of the owner. This separation provides a secure barrier against personal financial risk.

Another benefit is the potential ease of property transfer and tax advantages. Real estate owned by an LLC can be transferred by changing membership interests in the LLC itself, rather than transferring the actual real estate, which may reduce the costs associated with title transfers and minimize exposure to transfer taxes. In New York, LLCs have the option to elect pass-through taxation. This approach allows profits to be taxed solely at the individual member level, eliminating the double taxation that corporations typically face.

Additionally, operating through an LLC can enhance credibility with lenders and tenants, which is particularly valuable in the competitive New York City market. Banks might be more willing to lend to an LLC, and tenants often view an LLC as a more formal and stable management structure.

For real estate investors in NYC, setting up an LLC is a prudent step to mitigate risks associated with direct ownership, streamline management, and optimize fiscal outcomes. It is advisable to consult with a legal professional familiar with New York real estate and business law to tailor the LLC to specific investment needs and goals. 

Taking a Long-Term Approach

Unless you are specifically looking at the property from a flipping perspective, you should expect to hold onto it for a significant period of time to capture the greatest amount of return and hedge against any real estate market volatility.

Purchasing a property that is within your budget, financially self-sustaining, and has a good future prospect for appreciating in value requires a great deal of research and knowledgeable market insight. A good investor will typically work with an experienced agent and real estate attorney who understands investment property in New York City.

If you are considering buying an investment property in New York City, you will want one with critical experience with investment property purchases. Contact the NYC real estate attorneys at Sishodia PLLC at (833) 616-4646 or schedule a consultation through our online contact form.

from Sishodia PLLC https://sishodia.com/how-to-buy-an-investment-property-in-new-york-city/

What is a Proprietary Lease in New York?

A proprietary lease is a legal document that establishes the rights and responsibilities of co-op shareholders in New York City. It outlines the terms by which a tenant can occupy their unit and the terms of their agreement with the co-op board. In essence, a proprietary lease is a hybrid between a lease and a deed, in which the shareholder is granted ownership rights to their unit, but must abide by certain rules and regulations established by the co-op board. 

Before buying a co-op apartment in New York, it is important to speak with a skilled NYC real estate attorney to help you understand your rights and responsibilities as a buyer. A top-rated attorney may be able to provide the legal advice you need during the co-op board interview and answer any questions regarding your co-op purchase. 

Contact Sishodia PLLC today at (833) 616-4646 to speak with an experienced NYC real estate attorney.

Co-ops and Proprietary Leases

When it comes to owning a co-op apartment, it’s important to note that it’s not the same as owning a condo apartment or a single-family home. The key difference is that you’re not actually purchasing “real property.” Rather, you’re buying shares in a corporation, which is determined by the size of your co-op unit. Essentially, you become a shareholder in the cooperative.

Is a Coop Considered Real Property?

When purchasing a cooperative, or coop, in New York City, buyers often question whether they are acquiring real property. Unlike condominiums, where you own the actual unit, a coop involves purchasing shares in a corporation that owns the building. These shares grant you a proprietary lease to occupy a specific unit, but they do not equate to owning real property in the traditional sense.

This distinction is significant from both a legal and financial perspective. Since the coop unit is not considered real property, buyers do not receive a deed. Instead, they receive a share certificate and a proprietary lease. This arrangement impacts several aspects of ownership, including financing and the transfer of ownership. For instance, obtaining a mortgage for a coop can differ from financing a condo or house, as lenders view the shares and lease as personal property rather than real property. Additionally, coop mortgages typically require higher down payments and stricter approval processes, which vary depending on the coop’s financial health.

The sale and transfer processes are also subject to the approval of the coop board, adding another layer of oversight that you would not typically encounter with real property. Additionally, since coops are not real property, the closing process differs from that of purchasing a condo or house. Instead of a traditional real estate transfer, the closing involves the assignment of shares and the proprietary lease.

It’s important for potential buyers to recognize that a coop is not real property. This knowledge can significantly influence decision-making on the suitability of a coop based on one’s financial situation, investment goals, and willingness to comply with the cooperative’s rules and regulations. 

How A Proprietary Lease Works

Shareholders in cooperative apartment buildings are granted specific rights, such as the ability to sublet their units, as well as obligations outlined in the proprietary lease document. This lease contains vital information about how the cooperative functions and ensures that the building is maintained for the benefit of all residents.

The proprietary lease typically includes provisions for monthly maintenance payments, monthly bills, repair and maintenance procedures, compliance with laws, apartment inspections, and tips for maintaining the apartment. The lease also outlines the responsibilities of the shareholder, such as adhering to maintenance rules and caring for building items like windows and elevators.

As the apartment owner, the shareholder is responsible for maintaining their unit and seeking permission from the cooperative before making any renovations. These rules ensure that only licensed and insured professionals work within the building, protecting both the cooperative and its shareholders

Before signing a proprietary lease agreement, it’s crucial to review it carefully to fully understand the cooperative’s duties and the shareholder’s responsibilities. It’s worth noting that cooperative apartments do not confer ownership to occupants, meaning that shareholders do not receive a title or deed.

Legal Framework of Proprietary Leases in NYC

The legal framework surrounding proprietary leases in New York City stems from various sources, including statutes, case law, and the lease agreements themselves. A key statute relevant to proprietary leases is the New York Business Corporation Law (BCL). Section 501 of the BCL addresses the issuance and rights of shares in corporations, which include cooperative housing corporations. Specifically, Section 501(c) allows for the differentiation of fees or charges related to the sale or transfer of shares and their associated proprietary leases, as long as certain conditions, such as equal liquidation rights and substantially equal voting rights, are met.

The BCL also sets forth the responsibilities and rights of shareholders in cooperative apartments, including the right to transfer their shares and the obligation to pay maintenance fees. Additionally, the BCL requires the cooperative board to conduct annual meetings and manage the corporation’s affairs in the best interests of the shareholders.

Another important legal source for proprietary leases is case law. Court decisions have clarified and interpreted the BCL’s provisions for cooperative apartments. For example, the case of Levandusky v. One Fifth Avenue Apt. Corp. established that cooperative board decisions can only be overturned by a court if they are arbitrary, capricious, or illegal.

Finally, lease agreements themselves play a crucial role in defining the terms and conditions of proprietary leases. These agreements specify the rights and responsibilities of the tenant-shareholders, including their obligations to pay maintenance fees, comply with building rules, and maintain their units. The agreements may also contain provisions for alterations, subleasing, and dispute resolution.

Key Features of a Proprietary Lease

Ownership

Ownership is a crucial aspect of understanding what a proprietary lease is in New York. When purchasing a cooperative apartment in New York, the buyer does not own the physical unit. Instead, they own shares in the cooperative corporation that owns the building.

Duration

In a proprietary lease agreement in New York, the duration refers to the length of the tenant’s occupancy. The duration of a proprietary lease agreement is typically medium to long-term. Co-op boards in New York usually extend the lease term when it reaches 25-30 years prior to expiration. Proprietary Leases that expire in less than thirty years may cause problems with lenders. 

Maintenance and Repairs

One of the most important aspects of a proprietary lease in New York is the extent to which maintenance and repairs are the responsibility of the tenant or the landlord. When a tenant signs a proprietary lease, they typically agree to take care of routine maintenance activities within their own unit, such as changing light bulbs, replacing air filters, and keeping the space clean and orderly. 

Subletting

Subletting is a common practice in New York City, where space is at a premium and rents are high. A proprietary lease grants the lessee the right to sublet their apartment or commercial space, subject to certain conditions. Your coop purchase real estate attorney shall review sublet policy and advice on the terms during the due diligence process before the contract signing. 

Termination

The section on termination in a proprietary lease is a critical element that defines the consequences of ending a lease agreement. Before entering into a lease agreement, tenants and landlords must understand the conditions under which the lease can be terminated. A lease agreement can be terminated for different reasons, including the expiration of the lease, a violation of the lease terms by the tenant, or the landlord’s decision not to renew the lease.

Key Feature	Description
Ownership	Buyers of cooperative apartments in New York own shares in the cooperative corporation that owns the building, not the physical unit itself.
Duration	The duration of a proprietary lease agreement in New York is typically medium to long-term, with lease terms often extended by co-op boards around 25-30 years prior to expiration.
Maintenance & Repairs	Tenants are typically responsible for routine maintenance activities within their unit, such as changing light bulbs and keeping the space clean.
Subletting	Proprietary leases grant lessees the right to sublet their apartment or commercial space, subject to certain conditions.
Termination	Specifies conditions under which the lease can be terminated, including expiration, tenant violations, or the landlord’s decision not to renew the lease.

What Happens When a Proprietary Lease Expires?

When a proprietary lease expires, several legal and logistical steps must be taken, primarily concerning the tenant/shareholder and the owning corporation. A proprietary lease is often used in cooperative (co-op) housing, where the residents are shareholders in the corporation that owns the building. This type of lease creates a unique relationship between the tenant and the landlord, which is the corporation formed by all the shareholders.

Upon the expiration of a proprietary lease, the tenant/shareholder is typically required to surrender any associated stock certificates back to the corporation. This act is crucial because it signifies the termination of the tenant’s membership and ownership rights in the co-op. If the lease is not renewed or extended before its expiration date, the tenant must vacate the premises as they no longer hold any legal rights to the property.

Moreover, the expiration of all proprietary leases without renewal leads to an unusual situation where the building is owned by a corporation without any shareholders. This situation can create a legal and administrative vacuum that could complicate the management and ownership of the property. In such cases, it may be necessary for legal intervention or a new organizational structure to re-establish governance and ownership.

Therefore, it is crucial for both tenants and the managing corporation to closely monitor lease terms and ensure timely discussions about renewals to avoid the issues associated with an expired proprietary lease.

Getting the Skilled Legal Assistance of a New York Real Estate Attorney

A proprietary lease outlines the rights and responsibilities of a tenant in a cooperative building in New York City. It provides the tenant with a degree of control over their living situation that is not typically available in a rental arrangement and ensures that everyone in the building is subject to the same rules and regulations.

However, disputes can arise, and legal assistance may be necessary to ensure that all parties are treated fairly and in accordance with the law. Overall, proprietary leases are an important feature of New York’s unique real estate landscape and play a vital role in ensuring that residents have access to safe, affordable, and comfortable housing.

Speaking to an experienced New York real estate attorney about proprietary leases can help you understand your rights and make sure that they are protected. At Sishodia PLLC, our team of skilled real estate lawyers may be able to provide the legal advice you need when purchasing co-op apartments. Contact us today at (833) 616-4646 to schedule a consultation.

from Sishodia PLLC https://sishodia.com/what-is-a-proprietary-lease-in-new-york/

What is a Proprietary Lease in New York?

A proprietary lease is a legal document that establishes the rights and responsibilities of co-op shareholders in New York City. It outlines the terms by which a tenant can occupy their unit and the terms of their agreement with the co-op board. In essence, a proprietary lease is a hybrid between a lease and a deed, in which the shareholder is granted ownership rights to their unit, but must abide by certain rules and regulations established by the co-op board. 

Before buying a co-op apartment in New York, it is important to speak with a skilled NYC real estate attorney to help you understand your rights and responsibilities as a buyer. A top-rated attorney may be able to provide the legal advice you need during the co-op board interview and answer any questions regarding your co-op purchase. 

Contact Sishodia PLLC today to speak with an experienced NYC real estate attorney. 

Co-ops and Proprietary Leases

When it comes to owning a co-op apartment, it’s important to note that it’s not the same as owning a condo apartment or a single-family home. The key difference is that you’re not actually purchasing “real property.” Rather, you’re buying shares in a corporation, which is determined by the size of your co-op unit. Essentially, you become a shareholder in the cooperative.

How A Proprietary Lease Works

Most shareholders receive specific rights, such as the right to sublet a unit in a Shareholders in cooperative apartment buildings are granted specific rights, such as the ability to sublet their units, as well as obligations outlined in the proprietary lease document. This lease contains vital information about how the cooperative functions and ensures that the building is maintained for the benefit of all residents.

The proprietary lease typically includes provisions for monthly maintenance payments, monthly bills, repair and maintenance procedures, compliance with laws, apartment inspections, and tips for maintaining the apartment. The lease also outlines the responsibilities of the shareholder, such as adhering to maintenance rules and caring for building items like windows and elevators.

As the apartment owner, the shareholder is responsible for maintaining their unit and seeking permission from the cooperative before making any renovations. These rules ensure that only licensed and insured professionals work within the building, protecting both the cooperative and its shareholders

Before signing a proprietary lease agreement, it’s crucial to review it carefully to fully understand the cooperative’s duties and the shareholder’s responsibilities. It’s worth noting that cooperative apartments do not confer ownership to occupants, meaning that shareholders do not receive a title or deed.

Legal Framework of Proprietary Leases in NYC

The legal framework surrounding proprietary leases in New York is complex and stems from various sources, including statutes, case law, and the lease agreements themselves. The most important statute that governs proprietary leases is the New York Business Corporation Law (BCL). Section 501 of the BCL permits the creation of cooperative apartments, which are registered corporations that own the building and offer proprietary leases to tenants.

The BCL also sets forth the responsibilities and rights of shareholders in cooperative apartments, including the right to transfer their shares and the obligation to pay maintenance fees. Additionally, the BCL requires the cooperative board to conduct annual meetings and manage the corporation’s affairs in the best interests of the shareholders.

Another important legal source for proprietary leases is case law. Court decisions have clarified and interpreted the BCL’s provisions for cooperative apartments. For example, the case of Levandusky v. One Fifth Avenue Apt. Corp. established that cooperative board decisions can only be overturned by a court if they are arbitrary, capricious, or illegal.

Finally, lease agreements themselves play a crucial role in defining the terms and conditions of proprietary leases. These agreements specify the rights and responsibilities of the tenant-shareholders, including their obligations to pay maintenance fees, comply with building rules, and maintain their units. The agreements may also contain provisions for alterations, subleasing, and dispute resolution.

Key Features of a Proprietary Lease

Ownership

Ownership is a crucial aspect of understanding what a proprietary lease is in New York. When purchasing a cooperative apartment in New York, the buyer does not own the physical unit. Instead, they own shares in the cooperative corporation that owns the building.

Duration

In a proprietary lease agreement in New York, the duration refers to the length of the tenant’s occupancy. The duration of a proprietary lease agreement is typically medium to long-term. Co-op boards in New York usually extend the lease term when it reaches 25-30 years prior to expiration. Proprietary Leases that expire in less than thirty years may cause problems with lenders. 

Maintenance and Repairs

One of the most important aspects of a proprietary lease in New York is the extent to which maintenance and repairs are the responsibility of the tenant or the landlord. When a tenant signs a proprietary lease, they typically agree to take care of routine maintenance activities within their own unit, such as changing light bulbs, replacing air filters, and keeping the space clean and orderly. 

Subletting

Subletting is a common practice in New York City, where space is at a premium and rents are high. A proprietary lease grants the lessee the right to sublet their apartment or commercial space, subject to certain conditions. Your coop purchase real estate attorney shall review sublet policy and advice on the terms during the due diligence process before the Contract signing. 

Termination

The section on Termination in a proprietary lease is a critical element that defines the consequences of ending a lease agreement. Before entering into a lease agreement, tenants and landlords must understand the conditions under which the lease can be terminated. A lease agreement can be terminated for different reasons, including the expiration of the lease, a violation of the lease terms by the tenant, or the landlord’s decision not to renew the lease.

Getting the Skilled Legal Assistance of a New York Real Estate Attorney

A proprietary lease outlines the rights and responsibilities of a tenant in a cooperative building in New York City. It provides the tenant with a degree of control over their living situation that is not typically available in a rental arrangement and ensures that everyone in the building is subject to the same rules and regulations.

However, disputes can arise, and legal assistance may be necessary to ensure that all parties are treated fairly and in accordance with the law. Overall, proprietary leases are an important feature of New York’s unique real estate landscape and play a vital role in ensuring that residents have access to safe, affordable, and comfortable housing.

Speaking to an experienced New York real estate attorney about proprietary leases can help you understand your rights and make sure that they are protected. At Sishodia PLLC, our team of skilled real estate lawyers may be able to provide the legal advice you need when purchasing co-op apartments. Contact us today at (833) 616-4646. to schedule a consultation. 

source https://sishodia.com/what-is-a-proprietary-lease-in-new-york/

What Can Go Wrong With Attorney Review?

When buying or selling a home, it is important to make sure that every step you take will ultimately lead to you getting the best deal out of your transaction. This is where an experienced NYC real estate attorney can help. A skilled attorney may be able to help you understand the process of buying a property in New York. 

Before you close a transaction, your contract will have to go through a possess called an “attorney review.” Many people can be confused by this part of the process, however, it’s a necessary part of securing your dream home. During this process, both the buyer and the seller’s lawyers will review the contract to ensure that everything is legal and fair. 

You may wonder: what can go wrong during the attorney review? The answer is that a lot of things can go wrong during this stage. Most real estate transactions fall apart during the attorney review stage of the real estate buy/sell process. Because the contract is not yet legally binding at this point, the seller or the buyer may back out from the transaction without any penalties. Sellers are also still able to entertain another offer as long as the attorney review process is not yet over. 

If you are looking to buy or sell a property in New York, the attorney review process is an essential step to take. Speak to a skilled NYC real estate attorney at Sishodia PLLC or read on to learn more about the process. 

What is an Attorney Review? 

As mentioned above, an attorney review is one of the many steps in a real estate transaction. At this stage of the transaction, the lawyers from both parties will review the contract. 

The lawyers will then negotiate (if they have to) with the other party to ensure that the transaction is fair to both parties. This process usually takes three business days and either lawyer is able to recommend changes to the contract. 

An attorney review helps protect the rights of both the buyer and the seller. Attorneys take the time to make sure everything is correct. While this process is expected to conclude in three business days, other important concerns between the parties may warrant an extension to the deadline. 

What Happens During the Attorney Review? 

During the review period, buyers and sellers have the opportunity to talk with their attorneys. Their attorney can then review the terms of their contract, make modifications, or “disapprove” the agreement. 

The attorney review period often takes three to five business days and begins when the buyer’s side receives a copy of the draft contract of sale. 

Speaking to a skilled real estate attorney in NYC can help you understand your roles and responsibilities in the transaction. Contact Sishodia PLLC today to speak with a top-rated New York real estate lawyer. 

Issues Negotiated During the Attorney Review Process

There are many matters that need to be discussed and agreed upon by both parties with the help of a lawyer. Here are some of the issues discussed during the attorney review and that need to be resolved during negotiation:

• Deposit Due Date: The deadline by which you need to pay the deposit.
• Scope of Inspection: The extent to which you can inspect the property to ensure that it is in good condition.
• Mortgage Commitment: The time period given to the buyer to obtain a mortgage loan.
• Funding Contingency: mortgage contingency after commitment date and before the Closing. 
• Date of Closing: The date on which the property ownership is transferred from the seller to the buyer.

Apart from the aforementioned issues, there may be other things that need to be discussed and agreed upon as well including

• Home Sale Contingency: If the buyer needs to sell their current home before buying the new one, they may include this contingency in the contract.
• Replacement Home Contingency: If the seller needs time to find a new home before moving out of the current property, they may include this contingency in the contract.
• Use and Occupancy Agreement: If the seller needs to stay in the property for some time after the closing, they may sign an agreement to pay the buyer’s carrying costs such as daily mortgage and tax expenses.

All these issues need to be resolved during the attorney review period to ensure that both parties are satisfied with the terms of the contract.

What to Look for in a Real Estate Contract

When reviewing a real estate contract, it’s essential to look for key terms and details to ensure that you are protected during the sale process. Here are some critical factors to consider:

Financing Terms

Contracts should detail how you intend to pay for the property. This includes your down payment and mortgage contingency. 

Closing costs

It should be clear in the document who will pay the closing costs. The contract should also state how much each party will pay in dollar amounts.

Fee Responsibilities 

It’s crucial to understand how much each party will pay for escrow fees, realtor fees, title insurance, transfer taxes, flip tas, and any other fees involved in the sale. These terms are often negotiated before signing a contract, and their exact distribution should be clear in the document.

Home Inspection Terms

A home inspection contingency should be included in the contract, allowing the buyer to withdraw their offer and have their earnest money returned under specific conditions. Common contingencies include mold growth, foundation problems, pests, and radon.

Fixtures, Appliances, and Furniture 

The contract should clearly state whether light fixtures, windows, doors, and domestic appliances are included in the sale. If the owner is including any furniture in the sale, they must provide a list of the belongings and their value, which should be factored into the final price of the house.

Closing Date

The contract should specify the closing date, which typically takes between 30 and 90 days. Certain contingencies can be included in the contract that allows the buyer or seller to cancel the transaction under specific conditions.

While these are the most common terms found in real estate contracts, your document may include other relevant factors. The best way to ensure you are fully protected during the sale process is by having an attorney conduct a real estate contract review.

If you are looking for an experienced lawyer for a real estate transaction, contact Sishodia PLLC. Our team of experienced real estate attorneys may be able to help answer your questions about the contract and help ensure that you understand your rights and responsibilities. Call us today to schedule a consultation. 

The Importance of Having a Lawyer in a Real Estate Contract

An attorney can help you understand the legal terms and provisions of the contract and negotiate terms in your favor. They can also review the financing terms, closing costs, and fee responsibilities to ensure that everything is clear and fair for both parties. Additionally, they can review the home inspection terms and identify any contingencies that may affect the sale or purchase of the property.

The benefits of having an attorney review your real estate contract include:

• Protecting your legal rights: An attorney can ensure that your legal rights are protected throughout the process.

• Identifying potential issues: An attorney can identify potential problems in the contract and help you avoid them.

• Negotiating favorable terms: An attorney can help you negotiate favorable terms that benefit you.

• Ensuring clarity: An attorney can ensure that the contract terms are clear and that you understand what you are agreeing to.

• Providing guidance: An attorney can provide guidance on how to proceed if any issues arise during the transaction.

In conclusion, it is important to have an attorney review your real estate contract to ensure that your best interests are represented and protected during every step of the process. The relatively small legal fee paid to have an attorney review the contract is well worth it to ensure that the transaction goes smoothly, and your financial and legal rights are protected. 

Contact the Top-Rated Real Estate Lawyers at Sishodia PLLC Today

Buying or selling a home is a significant financial transaction that involves signing a contract. It’s crucial to review the agreement carefully to ensure that you understand the terms and protect your legal rights. Therefore, having an attorney review the contract can help identify potential issues and ensure that your interests are adequately protected.

Contact Sishodia PLLC for your real estate transactions. Our team of skilled real estate attorneys may be able to help you answer your questions about the transaction and help you protect your best interests. Contact us at (833) 616-4646 to schedule a consultation. 

source https://sishodia.com/what-can-go-wrong-with-attorney-review/

6 Questions To Ask a Real Estate Lawyer Before You Hire Them

Buying and selling real estate, especially in today’s hot market, can be stressful and may leave you legally vulnerable. While many individuals buying or selling a home know the basics of a real estate purchase, the basics won’t help if you get into a dispute with a potential investor. There are things to consider when selling your home. You may also find that you didn’t fulfill some of your contractual requirements as a first time buyer in New York, and now you are stuck.

Outside of New York State, it is not uncommon to see real estate transactions done with nothing but real estate agents and title company involvement, but it’s to every buyer or seller’s advantage to have legal guidance. While agents are an invaluable resource, they can’t dispense legal advice and are only liable for the specific services they are licensed to perform. However, New York real estate transactions can get really complicated and require an experienced attorney to navigate through the process.
A skilled NYC real estate attorney will review your contract, manage your due diligence, and guide you through closing. Having a real estate lawyer in your corner helps ensure the safety of your transaction and cuts down on the potential for litigation. But not all attorneys are alike. Asking the right questions will lead you to the right attorney for you.

Real estate attorney in Manhattan

Do You Practice Other Types of Law?

While many attorneys practice multiple areas of the law, you want an attorney whose primary focus is real estate. This ensures that he or she is well-versed in all the complicated real estate laws that your transaction may be subject to. It’s impossible to be the best at what you do if you practice multiple unrelated types of law, and you are looking for a lawyer who offers the best real estate legal guidance possible.

How Familiar Are You With My Type of Real Estate Transaction?

Real estate transactions are not created equal. Commercial and investment transactions are completely different from residential primary home transactions. There will be different due diligence requirements, liability issues, and tax implications depending on the type of property and transaction. You want to ensure that the New York City real estate attorney you choose has extensive experience with your particular type of real estate transaction, whether you are buying or selling a home or investing in an apartment complex.

Will I Be Dealing With You or Your Paralegal?

While a paralegal is a skilled professionals, their legal advice and liability are extremely limited. A paralegal is valuable for drawing up and filing important documents and conducting title searches, but dispensing legal advice and guidance is not in their wheelhouse. You are paying for the services of a lawyer, and that is what you should get. If a lawyer expects their paralegal to address all of their clients’ issues, you will not be getting the legal services you are paying for.

What Do Your Services Include?

A good real estate lawyer should offer 360-degree legal guidance from the thorough review of your contract through managing any other legal and financial due diligence necessary on your behalf. This can be extensive and will be different for each property type and transaction. You want a lawyer who has a good command of what will be necessary for your particular transaction and is clear about the services they will provide for you.

What Do Your Fees Include?

Traditionally, most real estate attorneys in New York City charge an all-inclusive fee depending upon the type of transaction and its complexity. This is typically taken at closing. If you are interviewing an attorney with a too-good-to-be-true fee structure, you may be paying extra for everything from the copies they make for you to the time they spend on a phone call on your behalf. How the lawyer expects to be paid and exactly what is included should be in writing.

What Can Go Wrong In Attorney Review?

The attorney review is a process in which the lawyers of both parties review and modify the contract. Typically, the review lasts for three business days unless an extension is agreed upon by both sides. Attorneys may modify, add or delete items relevant to the transaction. 

During this period, negotiations take place between the two parties to agree on the terms of the contract. The attorneys are responsible for negotiating and setting dates, determining deposit amounts, and resolving any legal issues that may arise. Once the attorney review period is over, the contract becomes legally binding for both parties. It is important to note that either party can withdraw from the agreement with no consequences during this period. 

Several matters must also be discussed and settled through negotiation. These matters include but are not limited to the extent of inspections, the amount and deadline for the deposit, as well as the buyer’s mortgage commitment period and closing date. Other issues that require negotiation may involve a home sale contingency, allowing a buyer to sell their current residence, or a replacement home contingency, giving a seller time to find a new house. Additionally, parties might need to discuss a use and occupancy agreement that would allow the seller to stay on the property after the sale’s completion, while bearing the buyer’s carrying costs, such as daily mortgage and tax expenses.

If you are searching for an experienced New York City real estate attorney, the team at Sishodia PLLC offers fine-tuned and individualized legal representation from first-time residential sales to highly-complex commercial transactions. Contact us at (833) 616-4646 or schedule a consultation through our online contact form.

source https://sishodia.com/5-questions-to-ask-a-real-estate-lawyer-before-you-hire-them/