Why You Need a Real Estate Attorney in New York
New York is one of a handful of states where attorneys play a central and required role in real estate transactions. Unlike states where a title company or escrow agent handles the closing process, New York law and longstanding practice require attorney involvement in the preparation and review of contracts, the examination of title, and the conduct of the closing itself. This is true for both residential and commercial transactions.
What many buyers and sellers do not realize is that the attorney representing the bank or the other side of the transaction does not represent you. The lender's attorney is there to protect the lender's interest in the mortgage. The seller's attorney is there to protect the seller. If you are buying a home, refinancing a property, or selling real estate, having your own attorney ensures that someone is reviewing every document, every contingency, and every financial figure with your interests as the sole priority.
Real estate is often the largest financial transaction a person will undertake in their lifetime. The contract of sale alone contains dozens of provisions that directly affect your rights and obligations, from the allocation of risk if the property is damaged before closing to the conditions under which you can walk away and recover your deposit. Without an attorney reviewing and negotiating these terms on your behalf, you may unknowingly agree to provisions that put you at a significant disadvantage.
At Rausa Russo Law, we represent buyers, sellers, and investors in residential and commercial real estate transactions throughout Westchester County and the greater New York metropolitan area. We handle every phase of the transaction, from initial contract review through post-closing matters, and we communicate directly with our clients at every step so there are no surprises at the closing table.
Residential Real Estate Transactions
Residential real estate transactions in New York follow a well-established process, but every deal has its own complexities. Whether you are purchasing your first home, selling a property you have owned for decades, or buying into a co-op or condominium, our firm provides comprehensive representation through every stage of the transaction.
Contract Review and Negotiation
In New York, the contract of sale is typically prepared by the seller's attorney and sent to the buyer's attorney for review. This is not a formality. The standard contract used in most residential transactions contains provisions that can and should be negotiated depending on the circumstances. We review every clause of the contract, explain the implications of each provision to our clients in plain language, and negotiate modifications to protect our clients' interests. Common negotiation points include the deposit amount and escrow terms, inspection contingencies, mortgage contingencies, the closing date, the condition of the property at closing, and what personal property or fixtures are included in the sale.
Due Diligence
Once the contract is signed, we conduct thorough due diligence on the property. This includes ordering and reviewing the title search, examining the survey, reviewing any inspection reports, confirming that there are no open building permits or violations, and verifying that the property taxes and other municipal charges are current. For properties in homeowners associations, we review the HOA documents and financial statements. This due diligence period is your opportunity to identify and address issues before you are contractually obligated to close.
Title Search and Title Insurance
The title search is a critical component of every real estate transaction. It reveals the history of ownership, any liens or encumbrances on the property, easements, restrictions, and other matters that could affect your ownership rights. We review the title report in detail and work to resolve any issues that arise before closing. We also coordinate the issuance of title insurance, which protects you and your lender against defects in title that may not have been discovered during the search. Title insurance is a one-time premium paid at closing and provides coverage for as long as you own the property.
Mortgage Coordination
For buyers financing their purchase, we work closely with your lender and the lender's attorney to ensure that the mortgage process stays on track. This includes reviewing the mortgage commitment, coordinating the scheduling of the closing to align with the lender's requirements, and reviewing the closing disclosure and other loan documents to confirm that the terms match what you were promised.
Closing Representation
At the closing, we are at the table with you. We review every document before you sign, verify that the financial figures on the settlement statement are accurate, confirm that all contractual obligations have been satisfied, and ensure that the deed and mortgage are properly executed and recorded. Our goal is to make the closing process smooth and straightforward, with no last-minute surprises.
Co-ops and Condos
Purchasing a cooperative apartment or condominium unit in New York involves additional layers of complexity that do not apply to single-family home purchases. Co-op purchases require board approval, and the application process can be extensive, involving financial disclosures, reference letters, and interviews. The buyer's attorney must review the co-op's proprietary lease, bylaws, house rules, financial statements, and offering plan. For condominiums, we review the declaration, bylaws, common charges, and any pending special assessments. We guide our clients through the board application process, advise on what to expect, and review all governing documents to identify any restrictions or financial concerns.
Post-Closing Matters
Our representation does not end at the closing table. We follow through on all post-closing matters, including confirming that the deed and mortgage have been recorded, ensuring that the title insurance policy is issued, and addressing any outstanding items that were agreed upon at closing.
Commercial Real Estate Transactions
Commercial real estate transactions present a different set of challenges and require a different level of analysis than residential deals. The financial stakes are often higher, the contracts are more complex, and the regulatory landscape is broader. Our firm represents business owners, investors, and developers in a range of commercial real estate matters.
Commercial Leases
A commercial lease is one of the most significant contracts a business will sign. The terms of the lease affect your operating costs, your ability to grow or modify your business, your exit options, and your exposure to liability. We negotiate and draft commercial leases for both landlords and tenants, addressing rent escalation clauses, maintenance and repair obligations, permitted uses, assignment and subletting provisions, options to renew, and tenant improvement allowances.
Purchase and Sale of Commercial Property
The purchase or sale of commercial property involves detailed contract negotiation, extensive due diligence, and coordination among multiple parties including brokers, lenders, surveyors, environmental consultants, and municipal agencies. We handle all aspects of the transaction, from the initial letter of intent through closing and post-closing compliance.
Due Diligence for Commercial Deals
Commercial due diligence goes well beyond the residential title search. Depending on the property type and intended use, due diligence may include environmental site assessments (Phase I and Phase II), zoning verification, review of existing leases and tenant estoppel certificates, analysis of operating expenses and income statements, review of building systems and capital improvement needs, and confirmation of compliance with the Americans with Disabilities Act and local building codes.
Zoning and Land Use Considerations
Before purchasing or developing commercial property, it is essential to confirm that the intended use complies with local zoning regulations. We assist clients in understanding applicable zoning classifications, identifying any variances or special permits that may be required, and navigating the land use approval process before municipal planning and zoning boards.
1031 Exchanges
A 1031 exchange allows an investor to defer capital gains taxes on the sale of investment property by reinvesting the proceeds into a like-kind property within specified timeframes. The rules governing 1031 exchanges are strict, and failure to comply with the requirements can result in the loss of the tax deferral. We coordinate the legal aspects of 1031 exchanges, including the contract provisions necessary to facilitate the exchange, and we work closely with qualified intermediaries and our clients' tax counsel to ensure that all requirements are met.
The Closing Process
Understanding what happens at a real estate closing can help alleviate the stress and uncertainty that many buyers and sellers experience. Below is a general overview of the typical New York residential closing process.
- Contract execution: Both parties sign the contract of sale. The buyer typically delivers a deposit (usually 10 percent of the purchase price) to be held in the seller's attorney's escrow account.
- Due diligence period: The buyer's attorney orders the title search, reviews the survey, and conducts any other necessary investigations. The buyer arranges for a home inspection if one was not completed prior to contract signing.
- Mortgage application and commitment: The buyer applies for financing (if applicable) and works toward obtaining a mortgage commitment letter from the lender within the timeframe specified in the contract.
- Title clearance: The buyer's attorney works with the title company to resolve any issues revealed by the title search, such as open liens, judgments, or defects in the chain of ownership.
- Pre-closing preparation: The attorneys for both sides coordinate on the preparation of the deed, transfer tax returns, closing adjustments (property taxes, water and sewer charges, fuel oil, and other prorated items), and all other closing documents.
- Final walk-through: The buyer conducts a final walk-through of the property, typically within 24 to 48 hours before closing, to confirm that the property is in the agreed-upon condition and that any repairs the seller was required to make have been completed.
- The closing: All parties (or their authorized representatives) convene to sign and exchange documents. The buyer signs the mortgage documents, the seller signs the deed, transfer taxes are paid, the balance of the purchase price is delivered (typically by certified check or wire transfer), and keys are handed over.
- Post-closing: The buyer's attorney ensures that the deed and mortgage are recorded with the county clerk, the title insurance policy is issued, and any post-closing obligations are fulfilled.
Common Issues We Help Resolve
Even straightforward real estate transactions can encounter complications. Having experienced legal counsel means that issues are identified early and resolved efficiently, rather than derailing the deal at the last minute. Common issues we help our clients navigate include:
- Title defects: Problems in the chain of title, such as unreleased mortgages, unsatisfied judgments, or improperly recorded deeds, can delay or prevent closing. We work with the title company and the opposing party's counsel to clear these defects before the closing date.
- Survey issues: Encroachments, boundary disputes, or discrepancies between the survey and the title report require careful analysis and, in some cases, negotiation of corrective measures or title insurance endorsements.
- Lien disputes: Mechanic's liens, tax liens, or other encumbrances on the property must be resolved before the buyer can receive clear title. We identify these issues during due diligence and negotiate their resolution as a condition of closing.
- Contract contingencies: When contingencies are not met, such as the failure to obtain a mortgage commitment by the contractual deadline, or an unsatisfactory inspection, we advise our clients on their options and negotiate extensions or other solutions.
- Inspection issues: When a home inspection reveals defects, we negotiate repair credits, price reductions, or seller obligations to remediate the issues before closing.
- Co-op board approval: The co-op board approval process can be unpredictable. We prepare our clients for the application and interview process and advise on how to present the strongest possible application.
- Financing delays: Mortgage approvals can be delayed by appraisal issues, underwriting conditions, or documentation requests. We coordinate with the lender's counsel and negotiate adjournments when necessary to keep the transaction on track.
Real estate transactions are governed by strict contractual timelines and deadlines. Missing a deadline for your mortgage commitment, failing to close by the contractual closing date, or neglecting to exercise a contingency within the specified period can have serious consequences, including the loss of your deposit or the collapse of the entire transaction. Having an attorney who monitors every deadline and keeps all parties accountable is one of the most important protections you can have in any real estate deal.
Why Choose Rausa Russo Law for Your Real Estate Transaction
Real estate transactions require an attorney who is responsive, detail-oriented, and deeply familiar with local practice and procedure. Here is what sets our firm apart:
- Local knowledge: We practice in Westchester County and the surrounding communities. We understand the local market, the local title companies, the local municipal offices, and the way transactions are conducted in this area. This familiarity allows us to anticipate issues before they arise and resolve them efficiently when they do.
- Direct partner access: When you retain Rausa Russo Law, you work directly with a partner of the firm. You will not be handed off to a junior associate or a paralegal for the substantive aspects of your transaction. Your questions will be answered by the attorney handling your matter.
- Transparent pricing: For standard residential real estate closings, we offer flat fee pricing so you know exactly what the legal cost will be before you commit. There are no hidden charges, no hourly billing surprises, and no fees for routine phone calls and emails.
- Coordination with all parties: A real estate transaction involves multiple parties: lenders, brokers, title companies, inspectors, municipal offices, and the attorneys on the other side. We coordinate with all of them proactively so that the transaction moves forward on schedule and nothing falls through the cracks.
- Clear communication: We believe that our clients should understand what is happening at every stage of their transaction. We explain documents in plain language, provide updates without being asked, and make ourselves available to answer questions throughout the process.