Construction Law
The attorneys of Pelton Serpe LLP have advised and defended construction company clients throughout the City of New York on a wide range of legal issues, from setting up new construction company entities to defending construction defect and negligence claims. Pelton Serpe LLP attorneys are experienced defending matters arising out of the New York Labor-Laws, personal injury and property damage as well as employment law issues. We are also experienced with construction contract negotiations, project financing and insurance coverage claims, as well as eminent domain and land use regulations. We are dedicated to establishing close working relationships with our construction company clients so that we may proactively provide legal advice before claims arise.
Real Estate Law
Buying a home is an intensely personal process and it is important that you are able to be open and honest with your real estate agent. In all real estate markets, its best to have a pre-approved commitment from a lender so that you can make a bid without a financing contingency. However, the housing market in much of the nation has recently pulled back and sellers may be more willing to work with buyers who must search for financing. The first step in the home buying process is typically executing a binder agreement, which is a written offer to buy a home at a certain price. Binders typically contain additional conditions regarding sales terms and are accompanied by a small amount of earnest money. Once a seller accepts a binder, the binder forms a formal contract and a purchaser risks losing the earnest money if he or she changes his mind regarding the purchase. As such, the binder should be made subject to a satisfactory inspection and attorney review.
Once the binder has been accepted and the home is inspected, the parties typically proceed to contact. While the sales contract is generally prepared by the seller's attorney, both parties' attorneys should review the documents to ensure that you obtain the best possible terms. Once the contract is executed, the parties are bounded by the conditions set forth in the contact. The contract should contain basic information regarding the names and addresses of the parties, the financial terms of the agreement and any personal property that is included in the sale. While the purchasers should be prepared to deposit a down payment in escrow, the sales contract should be subject to contingencies that allow the buyer to walk out of the deal if: (1) the seller is unable to provide good and marketable title; (2) the buyer is unable to locate an appropriate loan; and (3) further inspection shows evidence of termite infestation.
Sellers must provide title that is free and clear of judgments, mortgages and other liens, and the property must not violate any local ordinances or other laws. The buyer is typically provided 45 to 60 days to obtain financing, during which time the purchaser must act in good faith in applying and following up for a loan. While the initial inspection may be sufficient to search for termite damage, in the event termites are found before closing through a further inspection the seller is typically responsible to correct the damage. Once all of the contract contingencies are met, the parties should prepare for the closing, which is generally organized by the buyer's attorney.
The closing consists of three events that occur simultaneously: (1) the buyer receives title to the home; (2) the bank closes on its loan, paying the seller for the financed portion of the home; and (3) the title company guarantees that the buyer is obtaining good and marketable title. While the closing may sound simply, it requires the preparation and execution of many documents. Closing costs include those relating to the financing and fees relating to title insurance. Banks charge points, equal to 1% of the mortgage total, which is a fee paid to the lender for obtaining the loan, and require the buyer to pay the bank's attorney fees. Lenders may require funds to be set aside for tax payments, and buyers who finance more than 80% of the total purchase price may be required to purchase private mortgage insurance. Lenders require that the buyer maintain homeowners insurance, often requiring that the first year's premium be paid upon closing, along with certain additional miscellaneous fees.
Whether you are buying or selling your residential real estate, the attorneys of Pelton Serpe LLP will assist with your real estate transaction. Complete a Free Case Evalution, call Pelton Serpe LLP at (212) 725-3600 or email us at info@peltonserpe.com.
