What You Need To Know About Selling A House Or Condo In New York
Stephanie Cortes Graduate of California State Polytechnic University of Pomona
If you’re a New York homeowner looking to sell your home, here’s what you need to know.
New York home sellers must disclose facts about the property’s condition.
In New York, the Property Condition Disclosure Act (PCDA) requires sellers to let the buyer know about any issues with the property and provide a written disclosure form. If they don’t disclose this information then the seller may provide the buyer with a credit of $500 at closing. This option may help avoid future liabilities.
According to List With Clever, “the liability protection doesn’t apply in certain cases such for buyers in special relationships of trust with the seller.” Consulting with an attorney in these cases may help you understand your options.
Some of the things sellers will need to share are:
- Potential problems and irregularities with the structure of the property. For example fire or water damages.
- Areas that are hazardous or toxic substances
- Infestation of rodents, insects, or pest
- Any association fees and regulations
- The water system and quality
New York disclosure law exemptions
According to Newyorkstatesenate.com, the following conditions exempt some sellers from disclosing facts about the property:
- Court-ordered transfers for lawsuits that pertain to probate, legal separations, mortgage foreclosure, bankruptcy, guardianship, or conservatorship.
- Transfers made to the mortgagee to prevent foreclosure or satisfy the mortgage debt.
- Transfers made to a Deed of Trust beneficiary.
- Transfers made between co-owners.
- Transfers made to government agencies.
- Transfers of newly constructed real property that has not been occupied before
Home sellers in New York don’t need to hire an inspector.
Although sellers in New York must let buyers know about the house condition, they may disclose this information without the need of conducting an inspection or researching the property through public records. The disclosure statement language also mentions the conditions listed are ones that the seller obtains knowledge about and does not substitute property investigations.
New York closing costs
Both New York sellers and buyers will have to pay cost associated with the closing sale.
According to List With Clever, the following are some expenses that they will need to pay:
- Loan originations
- Title insurance
- New Mansion Tax for homes that are more than $1 million in New York City.
- Title search
- Tax transfers
- Attorney fees
- Mortgage prepayment fees
New York Real Estate Transfer tax payments
Generally, there are taxes associated with the transfer of ownership when selling a home. This will depend on the location the property is being sold. List with clever states that New York City’s transfer tax rate for properties that are sold below $500,000 is 1% and 1.425% for those sold above that price.
It is common for New York home sellers to pay them. However, if sellers do not pay or are considered exempt from paying then the seller will need to cover the cost. It is important to know that the tax amount cannot be financed for buyers and must be paid in cash.
Partner with a New York attorney.
New York is unique because it is one of the 22 states where attorneys must become involved in closing home sales. Although you may decide to work with a real estate agent to guide you and market your home, partnering with an attorney can benefit you in other ways. Real Estate lawyers may support you with drafting contracts, discussing the title report, providing closing documentation, and consult you on issues that arise. Before signing anything, it is best to consult with an attorney to protect your best interest and avoid offers being declined because of miscommunications.
Selling a home can be a complex and confusing process that involves paperwork and legal terms. Courtbuddy can help match you with an experienced real estate attorney to look over your documents and protect your best interest.
Court Buddy is here to connect you with an experienced and trusted lawyer who can help you at an affordable rate. The company assists with the management of your case and lawyer relationship. Your lawyer will assess your legal issue in a timely and confidential manner, explain why you need or do not need a lawyer, and only charge you for the legal services performed and associated out of pocket fees. This article is intended to convey general information and does not constitute legal advice.