BUYING AN APARTMENT IN NEW YORK: STEP-BY-STEP TIMELINE FROM OFFER TO CLOSING
If everything works out as it should, below is the typical timeline :
OFFER - Buyer makes an offer on apartment through their broker. In New York City, offers are not legally binding for buyer or seller. In New York, only a written and executed (=signed by both seller and buyer) contract is legally enforceable.
CONTRACT - Once buyer's offer is accepted, seller’s attorney prepares a contract and sends it together with building financials and by-laws to buyer's attorney. Some terms in contract might be further negotiated between attorneys. On average, it takes buyer's attorney a few days up to about a week to review these documents
BUYER'S SIGNATURE - If all terms of the contract are accepted by both parties, buyer signs the contract and buyer's attorney sends it to seller's attorney together with CONTRACT DEPOSIT equal to 10% of the purchase price.
SELLER'S SIGNATURE - If the seller signs the contract and sends it back to your attorney - we can say that we have a deal and we can proceed to the next step.
SIGNED CONTRACT RETURNED TO BUYER'S ATTORNEY: With a counter-signed contract, buyer can submit an application for mortgage/loan to a financial institution, when needed. If payment is all cash, buyer can start preparing board package right away.
LOAN APPLICATION: Typically, it takes about 6-12 weeks for a financial institution to approve a loan. Usually, 2 months.
BOARD APPROVAL - When you have all the money lined up, we will assist you to prepare and submit a so called board package to the condo or coop board of the building that the apartment is in. (If you are buying a whole building or townhouse, there is no board approval) Board package usually contains application forms, copy of the purchase contract, copy of mortgage approval, reference letters for the buyer, other forms. Condo board approval is more like a formality and usually doesn't take longer than four weeks. Co-op approval process is more complicated, takes longer and is stricter and more intrusive. Most recent tax returns and personal interview is required, and the buyer might be rejected by coop board with no explanation. From that point of view alone, condos are better option for foreign buyers and investors. More information about CONDOS AND COOPS
CLOSING - Closing is the final step in purchasing of a real estate property: it is a meeting of parties (buyer, seller, attorneys, brokers, bank, title company, management, others) at which the ownership of the property is transferred to the buyer and the buyer gets the keys.
It is recommended that the buyer visits the property the day before closing, just to confirm that the property looks as the buyer expects it to and there are no new issues. This visit is called a "walk-through". If we are your broker, we can do a walk-through on your behalf.
Many foreign buyers and sellers want to know if they have to come to New York for closing. The answer is: no, buyer and seller do not have to be present at closing. They can give power of attorney (POA) to their lawyer or broker.
If everything works out as it should, below is the typical timeline :
OFFER - Buyer makes an offer on apartment through their broker. In New York City, offers are not legally binding for buyer or seller. In New York, only a written and executed (=signed by both seller and buyer) contract is legally enforceable.
CONTRACT - Once buyer's offer is accepted, seller’s attorney prepares a contract and sends it together with building financials and by-laws to buyer's attorney. Some terms in contract might be further negotiated between attorneys. On average, it takes buyer's attorney a few days up to about a week to review these documents
BUYER'S SIGNATURE - If all terms of the contract are accepted by both parties, buyer signs the contract and buyer's attorney sends it to seller's attorney together with CONTRACT DEPOSIT equal to 10% of the purchase price.
SELLER'S SIGNATURE - If the seller signs the contract and sends it back to your attorney - we can say that we have a deal and we can proceed to the next step.
SIGNED CONTRACT RETURNED TO BUYER'S ATTORNEY: With a counter-signed contract, buyer can submit an application for mortgage/loan to a financial institution, when needed. If payment is all cash, buyer can start preparing board package right away.
LOAN APPLICATION: Typically, it takes about 6-12 weeks for a financial institution to approve a loan. Usually, 2 months.
BOARD APPROVAL - When you have all the money lined up, we will assist you to prepare and submit a so called board package to the condo or coop board of the building that the apartment is in. (If you are buying a whole building or townhouse, there is no board approval) Board package usually contains application forms, copy of the purchase contract, copy of mortgage approval, reference letters for the buyer, other forms. Condo board approval is more like a formality and usually doesn't take longer than four weeks. Co-op approval process is more complicated, takes longer and is stricter and more intrusive. Most recent tax returns and personal interview is required, and the buyer might be rejected by coop board with no explanation. From that point of view alone, condos are better option for foreign buyers and investors. More information about CONDOS AND COOPS
CLOSING - Closing is the final step in purchasing of a real estate property: it is a meeting of parties (buyer, seller, attorneys, brokers, bank, title company, management, others) at which the ownership of the property is transferred to the buyer and the buyer gets the keys.
It is recommended that the buyer visits the property the day before closing, just to confirm that the property looks as the buyer expects it to and there are no new issues. This visit is called a "walk-through". If we are your broker, we can do a walk-through on your behalf.
Many foreign buyers and sellers want to know if they have to come to New York for closing. The answer is: no, buyer and seller do not have to be present at closing. They can give power of attorney (POA) to their lawyer or broker.
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