What does a New York real estate purchase agreement cost? If you are buying or selling property in New York, you may be asking this question. Let’s explore this question and review some general information about real estate purchase agreements and why they necessary in real estate transactions.
Based on ContractsCounsel’s marketplace data, the average cost of a New York real estate purchase agreement is $649.03.
How Much Does a New York Real Estate Purchase Agreement Cost?
A New York real estate purchase agreement is an agreement that begins the transfer of property from a seller to a buyer. It outlines important information about the transaction like purchase price and the condition of the property. It also serves as a check list of things that must be accomplished before the sale can be completed like inspections and appraisals.
Once the buyer and the seller sign the real estate purchase agreement, it becomes a legally binding contract, and the parties must adhere to its terms. In New York, parties are required to work with an attorney to draft and process all real estate contracts.
What is the Purpose of a New York Real Estate Purchase Agreement?
The purpose of a New York real estate purchase agreement is to record a valid offer and acceptance between a buyer and a seller for the purchase of real estate. Purchase agreements begin the transfer of property and after the contract is signed, the parties enter an escrow period.
During escrow, which typically lasts 30 to 60 days, both parties will need to complete certain tasks like home inspections, appraisals, and securing financing. If either party fails to meet these contingencies before the closing date, in most cases, the real estate purchase agreement can be terminated without legal repercussions.
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What’s Included in a New York Real Estate Purchase Agreement
In New York, the two most commonly used real estate purchase agreement templates are the New York Association of Realtors version and the New York City BAR version. Both of these templates will include the following terms:
- Party Identification. The names and addresses of the buyer and the seller
- Property description. The property address and legal description of the property including the approximate lot size.
- Items included in the sale. The parties can negotiate what fixtures or furniture may be included in the purchase price.
- Items excluded from the sale. The seller should clearly state what items will not be included in the transfer of property.
- Purchase Price. The amount the buyer has agreed to pay for the property including the deposit amount and method of payment.
- Contingencies. Conditions that must be met before the sale can be completed like financing, home inspection, title searches, or agreed upon repairs.
- Conditions affecting the title. Any liens or encumbrances that may affect the title of the property.
- Disclosures. Any known issues or defects about the property and whether the buyer accepts the property “as is” or if the seller is required to make repairs.
- Closing Date. The day that the deal will be finalized.
Purchase agreements will typically include additional provisions relating to taxes, closing costs, and transfer of title.
Contingencies in New York Real Estate Purchase Agreements
Contingencies are the conditions that must be met before the sale can be finalized. The most common contingencies in New York include:
- Financing. The buyer must obtain financing like a mortgage to move forward with the sale.
- Home inspection. Allows the buyer to have the home inspected for defects. Significant defects like foundational issues can be cause for a buyer to back out of the sale.
- Appraisal. The buyer can terminate the sale if the property doesn’t appraise for the agreed upon purchase price.
- Title. Ensures that the property title is free from liens, easements, and encumbrances and ensures that the seller has the legal right to transfer title.
- Home sale. Sometimes, the buyer may stipulate that they need to first sell their current home before purchasing a new one.
Each of these contingencies gives the buyer or the seller the right to walk away from the deal if the contingency is not met.
New York Real Estate Purchase Agreement Drafting
Real estate purchase agreements are complicated legal documents and must be drafted correctly. In New York, buyers and sellers are required to hire attorneys to assist them through this process. It is customary for the seller’s attorney to draft the contract.
A real estate lawyer will know what needs to be included in the contract and the laws that govern real estate transactions in New York. An attorney can draft a legally enforceable real estate purchase agreement that includes all relevant and legally required covenants, disclosures, and payment information.
New York Real Estate Purchase Agreement Review
A buyer’s attorney will have the job of reviewing the seller’s attorney’s proposed real estate purchase agreement. Contracts generally favor the drafting party, so the buyer's attorney will ensure that the agreement protects their client’s interests.
New York Real Estate Purchase Agreement Drafting Cost
Hiring a lawyer to draft a real estate purchase agreement in New York will incur legal fees. Your lawyer may charge a consultation fee, drafting fees, and for their time at the closing.
ContractsCounsel’s marketplace data shows New York real estate purchase agreement drafting costs to be $750.00.
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New York Real Estate Purchase Agreement Review Cost
Hiring an attorney to review the real estate purchase agreement will also come with costs. The lawyer will charge for their time spent reviewing the contract and consultations with their client.
ContractsCounsel’s marketplace data shows the average real estate purchase agreement review costs in New York are $500.00.
How Do New York Lawyers Charge for a Real Estate Purchase Agreement?
Hourly Rates for New York Real Estate Purchase Agreements
It is common for real estate lawyers in New York to bill clients using an hourly rate fee structure. Under an hourly rate retainer, the attorney will keep track of the number of hours spent working on a client’s case. This will include client consultations, drafting and reviewing documents, and attending the closing.
At the conclusion of the case the lawyer will provide their client with a bill for the total cost of legal fees.
ContractsCounsel’s marketplace data shows the average hourly rate for a New York real estate lawyer is $250 - $400 per hour.
Flat Fee Rates for New York Real Estate Purchase Agreements
When a lawyer is hired for a shorter task, like reviewing a contract, they may opt to bill the client using a flat fee rate. The lawyer will estimate the number of hours the project will take to complete then quote a fair flat rate price for all legal services.
Flat fee rates are usually paid upfront before the lawyer begins working on the project.
ContractsCounsel’s marketplace data shows the average flat fee rate for a real estate purchase agreement in New York is $649.03.
Get Help with a New York Real Estate Purchase Agreement
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