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FREQUENTLY ASKED QUESTIONS
REGARDING REAL ESTATE TRANSACTIONS

I. What is the primary reason for a Real Estate Contract?

A real estate contract is a written agreement between the Seller and the Purchaser to transfer real property. It can be enforced by one party against the other in a Court of Law as equity. It usually provides for many other rights and obligations in conjunction with the sale and for the payment of certain costs. It also should specifically disclose the condition of the property sought to be transferred in order to avoid disputes and disagreements. It is the 'last word' and replaces all other statements, promises and representations that might have been made prior thereto.

II. What paperwork is necessary to prepare a Contract of Sale?

The Seller's attorney is usually responsible for preparing the Contract of Sale. It is most helpful if the Seller can provide a copy of the deed, Certificate of Occupancy and a Survey; however, a Contract may be drawn up without any of these. If your attorney has this information, it will make the transaction go more smoothly and take less time to close.

III. Who prepares the Contract?

As stated above, the Seller's attorney usually prepares the contract. It is important that the Seller select an attorney that is familiar with real estate matters and one who prepares the contracts in a timely fashion.

IV. When I accept a binder, am I taking my house off the market?

Yes -- however, the binder should indicate a maximum of 5-7 days for the parties to execute a contract. Also, you may want to indicate that the binder is 'subject to the review and approval of my attorney within 48 hours of the acceptance of the offer.'

V. How long does it take for contracts to be fully executed?

This will depend upon the location of the Seller and Purchaser, and their respective attorneys. In most cases, however, it takes approximately 7 - 10 days to get contracts fully executed. It will also depend upon whether all of the parties wish to meet together to sign the contract or to mail the contract so that they can be reviewed independently by each attorney and his or her clients.

VI. Do all attorneys do real estate contracts?

All attorneys are eligible to do Real Estate Contracts.

VII. How long will it take for me to close?

An average closing, with no unusual circumstances, should take approximately 60-90 days. As a buyer, the quicker you apply for your mortgage, the sooner you may close. And, as a Seller, make sure you have all of your Certificates of Occupancy and Compliance from the local authorities; since securing these items could take 6-8 weeks and delay your closing.

VIII. As a buyer, how much money do I need at closing?

Closing costs for the buyer are varied and relative to the size of the mortgage loan. Buyers will typically need title insurance, pay a mortgage tax to NY State and bank closing fees, filing fees, and attorney fees. It is especially important that these fees be reviewed with your attorney or mortgage broker at or before the time you sign a contract.

IX. What does it mean when the contract reads that the closing date is 'on or about' a certain time?

Closing dates are usually not made 'of the essence' in a real estate contract because of the difficulty in anticipating the time and date of closing. An 'on or about' date is a window of 60 days -- 30 days prior to the date or 30 days later than the date indicated. Please be mindful when you select a closing date that it is an approximate date only.

FEEL FREE TO E-MAIL ME WITH ANY FURTHER QUESTIONS THAT YOU MAY HAVE. This information should be used as a guide and I suggest you consult us further or your own attorney.

Respectfully submitted: DONALD H. DARBEE, ESQ.
1213A Main Street
Oakdale, New York 11769
(631) 567-7757