Seller's Frequently Asked Questions

 

 

Once I have accepted an offer on my house, what happens next?

Once an offer has been presented by a buyer and accepted by the seller, (usually in the form of a written binder prepared by a real estate broker) I, as your attorney, after obtaining from you any specific terms that need to be included in the transaction, would draft the contracts. These contracts are then sent to the buyers attorney, who would review them with his clients. Once signed the buyers attorney would forward the executed contract to my office, along with the required deposit. At that point, you would come to my office to review the contracts in full detail, and if all terms are acceptable, you would then sign and be deemed under contract.

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Is there any information that the seller could supply the law offices of Michael J, Croston before the contract is drawn?

In drafting a proper contract, it helps me to have the following items: survey, copies of all Certificates of Occupancies, copy of deed and tax bill, and a list of any personal items (i.e. appliances, window treatments, chandeliers) that you are excluding from the sale.

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What if I do not have the above items?

If you do not have some or all of the items, a contract can still be prepared.

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How much should a buyer put down at contract?

It is customary that between 5% and 10% of the total price is put down on contract signing, but depending on the purchase price and the circumstances, less can be acceptable. In the event that the buyer is obtaining FHA financing, a 3% deposit is allowable.

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When will the closing be?

The contract will have an on or about date, usually about 60 days from the date the contract was signed, though this is negotiable. This will allow the buyer time to obtain their mortgage and have a title search performed against your property. Once the buyer has their mortgage and the title search is completed, a closing is coordinated on a day that is good for all parties. An on or about date gives either party the flexibility of closing within about 30 days of the on or about date.

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Where will the closing be?

The closing is usually at the buyers lending institution, unless the premises is being purchased without financing, then it would be at the sellers attorneys office.

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What are my anticipated expenses?

At the closing, you will pay the following:

- Payoff all mortgages/home equity lines/lien and/or judgments against the house
- Real estate brokers fees
- New York State Transfer Tax-which is $4.00/$1,000.00 (i.e. on a $300,000.00 sale the seller would pay $1,200.00) to NYS.
- If there is a mortgage or home equity loan being paid off- a satisfaction of mortgage must be recorded with the County Clerk's Office and the fee is approximately $100.00 per mortgage satisfaction.
- Title closer fee of $200.00 per mortgage/home equity line being paid off, if applicable.
- Legal fee

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What about taxes I have paid for in advance?

The usual tax adjustment to the benefit of a seller is for any taxes that they have paid for in advance from the date of the closing until the end of the tax period. There also can be an adjustment for any oil that is in the tank, if proof is provided at closing from the oil company.

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What is the legal fee?

The legal fee that is charged by my office for the closing, which includes preparation of the contract, review of the title, coordinating and appearance at the closing is $1250.00 payable at the closing.

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Can I contact the law office of Michael Croston regarding any questions I have?

At the law offices of Michael J. Croston, anyone can have a FREE CONSULTATION, either in person or on the phone, regarding any of the above issues. In fact, I would recommend that once you decide to sell, to please give me a call at 631-474-0900 so that we could further discuss the closing process and answer and specific questions that you may have.

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