Initial Stage
Once you have decided to buy real estate, it's important to get a residential real estate lawyer onboard from the start, rather than after you have made an offer. A residential real estate lawyer, in the initial stage, can already advise you on all stages of a purchase, from the best ownership structure to acquire the property based on your family status and long-term financial objectives (i.e., using an LLC, trust, tenancy by the entirety, joint tenancy with rights of survivorship, sole ownership, etc.) to going over deal terms before contract negotiation.
Contract Negotiation
Once you have decided on a particular real estate property to purchase, your residential real estate lawyer will negotiate a contract of sale with the seller's attorney. Some provisions to look out for are the return of the earnest money deposit if the sale does not go through due to financing or otherwise and the consequences in case the final walk-through reveals that the property's condition has changed.
Due Diligence
Your residential real estate lawyer will perform due diligence over the property. This includes ordering and reviewing a title report to see if the real property's title is clean and unencumbered. If the report shows irregularities, the lawyer will attempt to resolve any clouds of the title with the seller and the title insurance company before closing. Other due diligence matters include reviewing the condo's minutes, by-laws, financials, offering plans, and building's rules and regulations to see if there are any problems in the building (such as persistent building leaks, gas issues, or pending increase in dues). The residential real estate lawyer will also review public records to see if the apartment is rent-controlled or rent-stabilized and if there are any violations at the Department of Housing, Preservation and Development (HPD), and if real estate taxes or HPD liens have been paid.
Mortgage and Closing
If you are financing the property with a mortgage, your residential real estate lawyer will assist you in preparing the mortgage application and reviewing the mortgage commitments to ensure all conditions in the commitment letter have been satisfied prior to closing. If you are buying a condo, your lawyer will ensure you receive the condo board's waiver of the right of first refusal to purchase the condominium unit from the seller.
The lawyer will be with you in the final walk-through to see if there have been no changes to the property's condition since contract execution and that the seller has made all the agreed-upon repairs. They will explain to you all closing costs, including real estate transfer and mortgage recording taxes, title insurance costs, real estate taxes, and other fees. During closing, your residential real estate lawyer will ensure all documents are executed and on hand to ensure a smooth transfer and will thereafter record the deed in the Department of Finance Registry in order to transfer the interest from the seller to the buyer.