New York Real Estate Purchase Contract

You may be lucky enough to have a real property unit in the state of New York or can afford to buy one. If so, you may know that any deal regarding transacting such units requires both parties’ responsibility, a certain amount of money, and filing a set of important legal documents. First and foremost, you should consider drawing up your own template of the New York Real Estate Purchase Agreement.

It is a crucial document that both the purchaser and the seller need. It describes the deal and sets a range of conditions and terms for all involved parties to follow, cooperate, and interact by. Every printable purchase and sale agreement is a comprehensive legal form that outlines everything a vendor and a buyer have agreed on during their bargain.

It is worth mentioning that the transfer of real estate does not just involve individuals. The contracts may occur between entities or between an entity and an individual. In such cases, the entity’s official representative is the one who signs the agreement. It is especially typical for deals that involve real estate used for commercial targets.

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There are essential things to mention in such forms; moreover, typically, real estate purchase contracts have specific attachments—disclosures that tell more details about the property to its new owner. It is common practice in all American states to provide certain disclosures, and every state has its legal requirements on the topic.

From our review, you will get useful information about the New York Real Estate Purchase Agreement signed when selling or purchasing either residential or commercial real estate. The structure of these two is similar but with some specific features. Also, we have added a brief roster of disclosures that are currently required for real property sales transactions in New York. We hope our review will shed some light on this topic for you.

New York Residential Purchase and Sale Agreement

There are plenty of points you should consider when drawing your real estate sales contract. You cannot omit any of these:

  • Seller’s and Buyer’s Legal Names

Filling out almost every legal form begins with this step. The agreement must start with indicating who a seller and a purchaser are. Moreover, besides their full names, it would also help to specify their complete physical addresses.

  • The Parties’ Signatures and the Date of Signing

Apart from the seller and the purchaser, every agent or broker must sign the form as well. Each signing party must add the date they signed the document.

  • The Estate’s Details

There are three significant points to reflect: the property’s location, ID number (can be found out through the local assessor), and type. If the seller transfers anything else as part of the property the details should be described in the form.

  • The Price and all Related Matters

The contract should clearly state how much the property costs and how much was paid already. If the buyer cannot cover the total sum in advance, there must be a schedule with the exact dates when the buyer transfers a specific amount to the seller’s account. It is also recommended to indicate the payment method used by the buyer. If any advance payment has occurred, the sum and date of the advance payment should be stated.

  • Conditions Discussed by Both Parties

This one is the longest part of almost any legal contract that presumes two or more parties agreeing on something. Conditions may take pages of the real property purchase agreement. However, it is vital to include all of them and talk through all the peculiarities that may affect the deal. Both parties should read the contract attentively to avoid signing something they are uncomfortable with.

The New York Consolidated Laws offer the whole title that is all about real estate. It is called “Real Property” (or RPP) and incorporates all norms and rules regulating the topic in New York, specifically.

New York Commercial Purchase and Sale Agreement

When creating an agreement for commercial real properties, you can use the same points that we have already described above and adapt them to your template. However, there is a couple of details to mention.

Firstly, you have to define an inspection period in the contract. This period is needed for the one who buys the property. The buyer must check the premises and ensure they suit the buyer’s business needs.

Another thing is that parties should reflect the property type in the contract: office use, retail, industrial, mixed-use, etc. The New York City Bar has suggested its template for commercial real property. You can check it to understand how to make your own agreement. Overall, when preparing your form, ensure that you have added the basics we have explained above.

As you already know, there is a separate title in the New York Consolidated Laws named “Real Property,” where you can get all current provisions regarding real estate questions in New York.

Required Seller Disclosures in New York

Providing various disclosures when you sell your real property to someone else is crucial. Without them, your deal might be considered illegal or unenforceable. See the list of required disclosures in the state of New York below.

Residential Property

The property seller has to provide no less than five or seven different disclosures in some American states. However, the state of New York is not overly strict about them. Here, you only need to pass two disclosures to your potential purchaser. They are pretty standard and reasonable, and you will not spend much time preparing them.

So, when selling out a piece of residential real estate in New York state, you should create the following disclosures:

  • Seller’s Property Disclosure Statement

This disclosure allows the buyer to get a complete picture of the property’s condition at the moment of selling. While affixing all the essential changes made to the property unit, the seller should use a standard form used in most American states. However, the document itself and its requirements may vary slightly.

The form used in New York is reflected in state law. You can familiarize yourself with Section 462 of the Real Property chapter of the New York Consolidated Laws. There, you will find the form itself and all things you have to include in the document that will tell a buyer about your real estate.

For instance, you have to indicate for how many years you have lived in the property or owned it, reply to a larger set of questions about the property, determine the condition of floors, water supplying system, air conditioning, patio, chimney, security system, smoke detector, plumbing system, and so on.

  • Lead-Based Paint Disclosure

This is needed for all buildings built before 1978 because there might be traces of hazardous lead (see Section 4852d, US Code).

Commercial Property

As for today, those who sell or purchase real property units for commercial purposes are not obliged to prepare and transfer any disclosures in the state of New York. Still, the real estate purchase agreement is a document that parties must draw together and sign, as stated above. So, when transferring or receiving any commercial real estate in New York, ensure that you have this legal form at hand when the deal is over.

Published: Jun 15, 2021