| The first step in purchasing a home in New | | | | The seller is liable to disclose to the |
| York is engaging a Real Estate Broker. Once | | | | purchaser, any encumbrance on the title such |
| the purchaser chooses the ideal home, an | | | | as prescriptive easements and liens arising |
| offer is made to the seller. The offer is | | | | out of non payment of maintenance services, |
| officially made by the purchaser by filling | | | | taxes, previous mortgages, judgments, |
| out an agreement called a binder and an | | | | municipal rates or divorce. Further, the |
| advance amount of 1% of the offered | | | | purchaser is required to obtain a title |
| consideration is deposited with the seller by | | | | insurance by paying a one time premium under |
| the buyer as earnest money. | | | | the New York State Laws . The seller's lawyer |
| | | | then draws up and sends the contract to the |
| The binder is the basic agreement for a | | | | purchaser's lawyer. The purchaser's lawyer |
| purchaser of a home and requires that various | | | | whets the contract. The purchaser then makes |
| conditions be included. The s conditions | | | | a down payment by check which the seller is |
| required include, the amount of mortgage loan | | | | expected to deposit in a bank as escrow. At |
| that the purchaser can raise, structural | | | | this juncture, the purchaser can sort out |
| stability of the property based on a report | | | | mortgage applications, arrange for carrying |
| by a structural engineer, pest control | | | | out the required inspections and renegotiate |
| inspection reports, water purity in places | | | | or withdraw from the contract in case of |
| where the municipal supply does not reach, | | | | irreconcilable differences. The purchaser |
| drainage inspection reports especially in | | | | will be well served by a mortgage plan that |
| homes that are not connected to the public | | | | covers a combination of not only the cost of |
| sewage systems and inspection of radiation | | | | the transaction but also the incidental fees. |
| levels if any. Once the binder is signed the | | | | |
| purchaser should engage a lawyer, a real | | | | A promissory note is signed with the mortgage |
| estate title company or a title trust company | | | | company by the purchaser which functions as |
| to search and give a certification that the | | | | the mortgage agreement. Mortgage Insurance is |
| property has a clear title. The New York | | | | often waived by mortgage companies if the |
| state Insurance Department regulates the fees | | | | applicant has a reliable payment history. |
| charged for a title search. Details of real | | | | Once all formalities are concluded the |
| estate title companies and title trust | | | | contract is formally signed and sealed for |
| companies are available with the New York | | | | the purchase of the home. This is the closure |
| Land Title Association, The New York Society | | | | of the purchase and it is at this time that |
| of Mortgage Professionals and the American | | | | Attorney and agents fees are payable. The |
| Land title Association. Mortgage companies | | | | purchaser is required to show the proof of a |
| and banks lend money on the basis of the | | | | home owners insurance at the time of closure |
| property having a clear title. | | | | and leave with the keys to his new home. |
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