Buying a Home in New York: The Attorney-Led Closing, Step by Step

In New York, much of the legal work of buying a home happens before the closing table, in the contract and the due diligence that follows it. The Real Estate & Closings practice group of Rausa Russo Law, PLLC represents buyers of houses, condominiums, and co-ops throughout New York State. Customs, forms, and costs vary by county and region, so read this guide as a map of the process, not as advice about your specific purchase.

How a New York Purchase Works

Most residential purchases in New York follow this sequence:

1. Offer and acceptance. You and the seller agree on price and the basic terms, usually through the brokers. The New York State Bar Association advises that the time to consult an attorney is “before you sign anything — or immediately after you sign a contract or binder that is subject to attorney approval.”
2. The contract of sale. Who drafts it depends on where you are. According to the State Bar, “downstate, the seller’s attorney prepares the contract,” while “upstate, a real estate agent often prepares the offer or contract, subject to the approval of the parties’ attorneys.” For most one- to four-family houses, the seller must give you a signed Property Condition Disclosure Statement before you sign. You then sign the contract and pay a down payment, which is held in escrow under the contract’s terms; the contract should say who holds it and on what instructions.
3. Due diligence. For most homes built before 1978, federal law requires the seller to disclose known lead-based paint and lead-based paint hazards and, before you are bound by the contract, to give you a 10-day opportunity to have the home inspected or assessed for lead, unless you agree in writing to a different period or waive it. You arrange inspections; your attorney reviews the paperwork, which for a co-op or condo often includes the building’s governing documents.
4. The mortgage commitment. If you are financing, the contract commonly includes a mortgage contingency, under which, in the State Bar’s words, “the buyer’s obligations to close are conditioned on the buyer’s obtaining a mortgage loan commitment.”
5. Title. A title company searches the property’s records and issues a title report. Your attorney reviews it, raises objections, and works with the seller’s side to clear liens and other problems before closing.
6. Closing. If you are financing, your lender generally must make sure you receive the Closing Disclosure at least three business days before closing (12 C.F.R. § 1026.19(f)(1)(ii)). At closing, you sign the loan documents, the balance of the purchase price is paid, the seller delivers the deed, and the deed and mortgage are sent for recording.

The Contract: Why the Writing Matters

New York’s Statute of Frauds, General Obligations Law § 5-703(2), provides that a contract “for the sale, of any real property” “is void unless the contract or some note or memorandum thereof, expressing the consideration, is in writing” and “subscribed by the party to be charged, or by his lawful agent thereunto authorized by writing.” The deed itself must also be in writing: under § 5-703(1), an interest in real property generally cannot be created or granted except “by a deed or conveyance in writing.”

The practical lesson: anything you are relying on, including the closing date, the contingencies, what stays with the house, and who holds the down payment, belongs in the signed contract, not in an email or a conversation with a broker.

“Time of the Essence” and the Closing Date

The closing date in a New York contract is often not a hard deadline. The Court of Appeals explained in ADC Orange, Inc. v. Coyote Acres, Inc., 7 N.Y.3d 484 (2006), that “in contracts of this kind, time is not ordinarily of the essence unless the agreement so provides.” Generally, either side can change that by giving “clear, unequivocal notice” and a reasonable time to perform.

If you receive a time-of-the-essence notice, or your contract already makes time of the essence, call your attorney the same day. Missing a firm date can have serious consequences that depend on the contract’s terms.

House, Condo, or Co-op: What You Are Actually Buying

Co-ops. In a co-op, the corporation owns the building. As the Court of Appeals described it in 40 W. 67th St. Corp. v. Pullman, 100 N.Y.2d 147 (2003), a shareholder-tenant holds shares “appurtenant to his proprietary lease” and “voluntarily agrees to submit to the authority of a cooperative board.” Courts generally defer to a board’s decisions under the business judgment rule of Levandusky v. One Fifth Ave. Apt. Corp., 75 N.Y.2d 530 (1990), “so long as the board acts for the purposes of the cooperative, within the scope of its authority and in good faith.”

Some localities set deadlines for board decisions. In New York City, Local Law 58 of 2026 (enacted January 29, 2026, by veto override) requires covered co-op boards to acknowledge receipt of application materials within 15 days and to state consent or denial within 45 days after the application is complete. If a board does not acknowledge an application within 15 days, the application is deemed complete; a board may extend the 45-day decision deadline once, by up to 14 days, on notice; and, if the board has adopted a written summer recess notice, the 15-day acknowledgment deadline is paused during the July–August recess, and the 45-day decision deadline is paused if it would otherwise end during the recess. HPD enforces the law, with civil penalties of $1,000, $1,500, and $2,000 for first, second, and later violations. The law took effect July 28, 2026, applies to applications made on or after that date, and does not cover buildings with fewer than 10 dwelling units, housing development fund companies (HDFCs), or co-ops whose share sales require a governmental housing agency’s approval. In Westchester County, the county Human Rights Commission explains that boards must acknowledge receipt of an application (or identify what is missing) within 15 days, must approve or reject within 60 days after the application is complete, and must include “the reason for the rejection” in a rejection notice.

Condos. Whether a condo board has a right of first refusal, and what a purchase application requires, depends on that building’s declaration and by-laws, which your attorney should read.

New construction and conversions. When a sponsor sells co-op or condo units, the Attorney General explains that sales are made “pursuant to the terms and conditions of an offering plan,” and General Business Law § 352-e requires that plan to be filed with the Department of Law before the offering. When an individual owner resells a unit, the Attorney General notes that “the sale is not regulated by the Attorney General,” which makes your own review of the building more important. See our article on buying a co-op and board approval.

Closing Costs: A Buyer’s Overview

The figures below are summarized from the New York State Department of Taxation and Finance, the New York City Department of Finance, and Form MT-15, as of October 2026. Rates change; confirm current figures for your transaction. For a fuller walk-through, see New York closing costs: transfer tax, mansion tax, and mortgage recording tax.

Legal fees are separate from these third-party costs. Rausa Russo Law does not provide tax advice; for tax-planning questions, we can coordinate with your tax adviser.

Title Insurance

Title insurance, as the Department of Financial Services puts it, “protects the owner of property and the mortgage lender against future claims.” There are two kinds. An owner’s policy “protects the property owner up to the full original sales price of the property.” A lender’s policy “protects the lender’s interest in the property.” When both are issued together, DFS explains that “a reduced rate known as the Simultaneous Mortgage Rate applies” to the lender’s policy.

Title insurance “rates and rules are subject to approval by the Department,” and the Title Insurance Rate Service Association (TIRSA) is “a rate service organization licensed by the Department.” DFS’s Regulation 208 also bars title insurers from giving inducements for future business, provisions the Appellate Division, First Department, upheld in 2019. Rausa Russo Law is not a title agency and does not issue title insurance. We review the title report and policy terms for you and work to resolve objections before closing.

Protecting Your Closing Funds from Wire Fraud

Closing wire fraud follows a familiar script. The FTC warns that “scammers sometimes send emails impersonating your loan officer or another real estate professional,” “saying there’s been a last-minute change,” and that “they might ask you to wire the money to cover closing costs to a different account.” The FTC’s advice: “Don’t do it — it’s a scam.” The FBI’s Internet Crime Complaint Center (IC3) recorded 24,768 Business Email Compromise complaints in 2025, with about $3.05 billion in reported losses. Closing wire diversions are commonly reported in that category, but the report does not isolate closing-related losses.

A practical safeguard is to treat any emailed wire instructions, and especially any change to them, as unverified until you confirm them by phone with your attorney or the title company at a number you already have, not one in the email. The CFPB’s 2019 guidance (now archived) suggests that you “identify two trusted individuals to confirm the closing process and payment instructions” and “do NOT email financial information.”

If you think you have sent money to the wrong account, act quickly. The FBI advises: “Immediately, contact your financial institution and request a recall of the funds,” and “regardless of the amount lost, file a complaint at www.ic3.gov.” We recommend reporting the transfer to your bank as fraudulent right away by phone, following up in writing to create a record, and calling your attorney. Which laws apply to a stolen wire can depend on how the payment was made; federal courts are divided on some of these questions, and the issue is on appeal. Banks and other parties may have their own responsibilities, and some deadlines to act are short. See our guide to drained bank accounts and unauthorized transfers and our article on real estate closing wire fraud.

The STAR Credit for New Homeowners

If the home will be your primary residence, register for the School Tax Relief (STAR) credit. According to the Department of Taxation and Finance, the STAR exemption “is no longer available to new homeowners”; new buyers receive the STAR credit instead, paid by check or direct deposit from the Tax Department. To qualify, “the property must be the primary residence of an eligible owner.” As of October 2026, the Basic STAR income limit is “$500,000 or less for the STAR credit,” measured by the combined income of resident owners and their spouses. Enhanced STAR is available where at least one resident owner is at least 65 as of December 31 of the benefit year, with income limits of $110,750 for 2026 benefits and $113,550 for 2027 benefits. Limits change annually.

After Closing

Recording the deed. After closing, the deed is recorded with the county clerk (in New York City, the city registrar). Recording matters: under Real Property Law § 291, a conveyance that is not recorded is void as against a later good-faith purchaser for value whose own conveyance is “first duly recorded.” The same section directs the clerk or city registrar to “mail a written notice of such conveyance to the owner of record” when a conveyance of residential real property is recorded.

Watching for deed theft. Since July 19, 2024, deed theft is, in the Attorney General’s words, “legally considered grand larceny, and can be prosecuted as such” under Penal Law article 155. If you receive a recording notice you do not recognize, or suspect someone has filed a fraudulent deed, contact your attorney and the Attorney General (1-800-771-7755; deedtheft@ag.ny.gov). See deed theft in New York: how to protect your home.

How a Flat-Fee Quote Works

Flat-fee representation is available for many residential closings. Request a quote; the quote and our engagement letter describe what the fee covers. Third-party costs (such as title insurance, transfer and mortgage recording taxes, and recording fees) are separate. A quote is not an engagement; representation begins only under a signed engagement letter. Start on our quote request page or visit the Real Estate & Closings practice group. Still deciding whether you need a lawyer? See do I need a lawyer to buy a house in New York?