New York Real Estate Contract: Different Types and Key Terms to Include

Quick Facts — Real Estate Contract Lawyers

What is a New York Real Estate Contract?

A New York real estate contract is an agreement that is drafted for the purpose of buying and selling real estate. After a potential buyer makes an offer on a property, and the seller accepts the offer, a real estate contract will lay out the terms and conditions that will facilitate the sale.

Real estate contracts include important information about the transaction. It is common to find the following terms and clauses included in the contract:

  • The identity of the parties
  • A description of the property
  • The agreed upon purchase price
  • Contingencies that must be met to finalize the sale
  • State required seller disclosures that must be provided to the buyer
  • Closing date
  • Fees like closing costs and which party is responsible for payment

Contracts pertaining to real estate are governed by the New York Statute of Frauds. Under these laws, all real estate contracts must be in writing to be enforceable by a court. It is highly recommended that buyers and sellers consult with a realtor or a real estate agent to assist with preparing a real estate contract.

Common New York Real Estate Contracts

There are several types of real estate contracts that can be used when buying and selling property. In New York, the most common real estate contract is residential purchase and sale agreement. This contract comes in two different versions:

  • New York Association of Realtors Purchase Agreement. This contract is a fillable standard form template for the purchase and sale of real estate in New York.
  • New York City BAR Purchase Agreement. This contract is a standard template that was prepared by the New York State Bar Association.

Both contracts contain all the necessary terms and conditions that make a New York real estate contract legally binding. Once the contract is signed by both parties, it is enforceable in court.

4 Essential Elements of a New York Real Estate Contract

In New York the 4 essential elements required in all real estate contracts include:

  1. Legal Capacity. There needs to be at least two parties who are legally allowed to enter a contract. This means the parties are of sound mind, of legal age, and are not under the influence of drugs or alcohol.
  2. Offer and acceptance. The contract must include a valid offer and acceptance of the offer. In a real estate contract, the offer is made by the buyer.
  3. Consideration. Consideration is the exchange of items of value. Each party must give up something to gain something in a contract. For the purposes of a real estate contract, consideration is typically the exchange of money for property.
  4. Mutual assent. Also referred to as “meeting of the minds”, mutual assent is each party’s understanding and intent to enter a legal contract.

If any of the four essential elements are missing from a real estate contract in New York, the contract will not be enforceable.

Are Real Estate Offers Binding in New York?

No. Real estate offers are not legally binding in New York. Unlike other states which require buyers who are making offers to sign a real estate contract, New York uses a short offer form. This form is not legally binding and only serves to provide the seller with an offer. Even if the seller accepts the offer, the deal is not legally binding until both parties sign a valid purchase and sale agreement.

Once the purchase agreement is negotiated and signed by both parties, the parties are considered “in contract”. At this stage, both parties are legally bound by the agreement and only certain contingencies, or a mutual agreement will allow the parties to terminate the contract.

Frequently Asked Questions

How do I hire a lawyer to draft a real estate contract in New York?
How much does it cost to hire a lawyer to review a real estate contract in New York?

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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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