What is the difference between owning a condominium versus a co-op?
A condominium is owned in “fee simple absolute”. This means that the owner of the apartment owns the actual real estate. An owner of a co-op unit owns shares in the co-op corporation (i.e. personal property) and is permitted to occupy the apartment through the proprietary lease.
Are closing costs cheaper for a co-op or condominium?
In general, yes. No title insurance is required for co-op transactions and similarly, there is no New York State mortgage tax in connection with financing.
What is a mansion tax?
The “Mansion Tax” is a 1% tax on the purchase price of a property (co-op’s included) assessed by New York State paid by the Purchaser at closing when the purchase price of a transaction is equal to or greater than $1,000,000.00.
When is the transaction officially “in contract”?
Under New York State law, there are no verbal agreements for the sale/purchase of real estate. You are not “in contract” until both the Buyer and Seller have signed the contract of sale and the signed contract has been delivered to the Buyer’s attorney, unless the contract provides otherwise.
I am buying a new home. Am I required to purchase title insurance?
Any purchaser of a residential house or a condominium apartment that is obtaining a mortgage in connection with the purchase is required to purchase title insurance both for him or herself and for their lender. An “all cash” purchaser is not required to purchase title insurance; however, it is highly advisable that they obtain this.
How much money must a Buyer put down at contract?
Typically, Buyer’s pay 10% of the purchase price when they sign the contract of sale.
Is the contract deposit of 10% paid by bank official check?
No. A personal check suffices.
What does your firm charge to represent a buyer or seller in a real estate transaction?
SL&K charges flat fees for all residential real estate transactions. Our fees vary depending on the complexity of the transaction. Please contact us further for more information.