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Jeanne M. Reardon
Jeanne M. Reardon
516-314-8433 | CALL TODAY
REAL ESTATE LAW FIRM
Serving Long Island & Greater New York
NOTICE: COVID-19 UPDATE, FIRM OPERATIONS CONTINUE UNINTERRUPED. WE ALSO OFFER CONSULTATIONS
BY PHONE OR EMAIL. PLEASE DO NOT HESITATE TO CONTACT US IF YOU HAVE ANY QUESTIONS.
Real Estate Law Blog
Real Estate Law Blog
Blog
COVID-19 UPDATE
| Posted on March 21, 2020 at 6:52 PM |
COVID-19 Update:
At the Law Office of Jeanne Reardon, the health and safety of our staff and clients is our top priority. Since you
rely on us for your legal needs, we remain
ready to help you in this difficult time as we face many health and financial challenges. Accordingly, we are taking a number of steps to minimize health risks during this health crises while serving our current clients as well as new clients coming on board. Our
law firm will be adhering to the guidelines presented by the Centers
for Disease Control and our local health officials, and we continue to
monitor them for updates as they are released. We have implemented a plan to protect the safety of our work
environment while allowing us to continue to service all of our clients. We are taking precautions with respect to
non-essential meetings and face-to-face interactions. That includes
telephone consultations and conference calls whenever possible. With respect to our real estate practice,
we will endeavor to utilize Powers of Attorney, pre-signed deeds, and Escrow Closings, where available,
in order to close title when the transaction permits us to do so. Do not hesitate to contact us if you have any questions or
concerns regarding your current real estate transaction or if you are just getting started and are looking to hire a real estate attorney for an upcoming sale or purchase of a home. As always, we are committed to
handling our clients' matters with the utmost care and respect, and are available to assist both current and new clients. We hope that you and your family remain safe and healthy! Jeanne Reardon, Esq. |
What does the "on or about" closing date in my contract to purchase a home mean?
| Posted on October 30, 2018 at 12:24 AM |
 The standard residential contract of sale used by attorneys
in the New York Metropolitan area will often state that the closing will take
place, for example, “on or about December 1, 2018.” In New York, unlike many other states, the
“Closing Date” contained in the contract, especially if the words “on or about”
precede it, is a fluid date. It is rare
that a closing actually occurs on the date specified in the contract. The
phrase “on or about” has been interpreted by the New York courts to mean that
either side has a reasonable period beyond the “on or about” date in which to
close. If all progresses on schedule, a closing can usually occur
within 60 days after the contract has been fully executed by the seller
and purchaser. However, not all real estate transactions proceed as planned. While many of the transactions do eventually
close (unless a buyer is unable to obtain financing or an appraisal comes in
too low), there are some that do end up in a dispute or litigation. If a party is unwilling to close within a “reasonable”
time after the closing date, many times, before litigation is commenced,
the attorney for the party wishing to close can send what is referred to as a
Time of the Essence Letter (“TOE Letter”) to the other party. That letter
will set forth a new closing date stating that “time is of the essence.” If the party receiving the
letter does not close by that date they can be declared in default under the
terms of the contract of sale. It is important to note that the “time of the essence”
standard is not a statutory standard but rather one established by the courts
and case law, and is constantly changing depending on each case that is decided
by the courts. While the courts are
silent as to what constitutes a “reasonable” time, many real estate attorneys
practicing in the New York Metropolitan area have come to a consensus that “reasonable”
is generally about 30 days. However, the
case law has explained that the other
party must be given a reasonable time in which to act and what amounts to a reasonable time to perform
depends on the circumstances of the case. Whether dealing with a TOE Letter or an “on or about”
closing date, the closing date and closing time frames can quickly change and
extend far beyond the “on or about” closing date depending on the
circumstances. |
Real Estate Contract Mortgage Contingency Clause
| Posted on September 30, 2018 at 5:50 PM |
 Most people obtain financing when purchasing a
house, condo, or co-op. In that case, the contract of sale will contain
a mortgage contingency clause making the sale contingent upon the buyer
obtaining a mortgage in a certain amount. If the buyer's loan
application is denied by the lending institution, the buyer can then
cancel the contract and get the down payment back.In
order to benefit from the protections allowed by the mortgage
contingency clause the buyer must strictly abide by all its terms, i.e.
the buyer must only apply for a loan in the amount stated in the clause
(or such lesser sum as buyer shall be willing to accept), and obtain
the mortgage within the time frame given in the clause. If the buyer
applies for a loan greater than the amount stated in the
clause and is then denied a loan, the buyer will have forfeited the
protection afforded by the clause and will not be able to cancel the
contract. If the buyer is then unable to obtain other funds to complete
the purchase the buyer will be in default under the terms of the
contract and
more than likely lose their down payment. On the other hand, if the
buyer is approved for a loan greater than stated in
the mortgage clause, then no problem. Nonetheless, I would never
advise a
client to take such a risk and put their down payment in jeopardy.
There are many reasons why the loan may be denied that have nothing to
do with the financial qualifications of the buyer and are beyond the
buyer's control. An experienced real estate attorney will help you
navigate through this process. The
mortgage contingency clause is there to protect your down payment
should your loan be denied. To best protect yourself when purchasing a
home with a mortgage, hire an experienced real estate attorney who fully
understands all aspects of the mortgage contingency clause and will
guide you through the entire closing process. To speak with
an experienced real estate attorney, call us at (516)
314-8433. To learn more about our services and how we can assist you, visit us
at www.jreardonlaw.com |
Joint Ownership of Real Property in New York
| Posted on May 13, 2018 at 6:21 PM |
 Joint
property ownership can be a great solution for people who want to own a home,
especially for first-time buyers. But joint ownership can limit your rights and
options -- not only while you own the property, but also when you want to
transfer ownership to an heir or another buyer. There are three major forms of
joint property ownership (or "concurrent ownership") -- tenancy in
common, joint tenancy, and tenancy by the entirety.Tenancy
in common (sometimes called a "TIC") is the most popular form of
concurrent property ownership. Tenants in common (or co-tenants) each own an
equal share of a piece of property -- whether it's a house, an apartment
building, or other type of real estate. This generally means that each
co-tenant has an equal right to possess or use the entire property, and that
the rent or maintenance costs of the property are shared among the co-tenants
according to their ownership interest. Each co-tenant also possesses a share in
the value of the property as it appreciates. Real estate owned by one or more
persons as tenants in common gives a percentage ownership to each person, and
upon that owner’s death, their percentage share goes to their estate. If they
have a will, it goes to the persons named in their will. If they die without a
will, then it goes to their legal heirs-at-law. With this type of ownership,
each owner has the right to transfer their share during their lifetime, without
obtaining the permission of the co-owner. If the deed is silent as to form of
ownership, then there is a presumption in the law that the parties own as
tenants in common. Any co-tenant has
the right to live in the premises without paying rent to the other owners, and
every co-tenant may be entitled to credits for items such as taxes, maintenance
and repairs. If the premises are rented to a non-owner, all co-tenants would be
entitled to share in the rent. A
co-tenant can transfer interest in a tenancy in common to another buyer or to
an heir -- via a will, for example. A co-tenant can also mortgage a share in
the property. What a co-tenant cannot do is transfer or sell the other
co-tenants' interests in the property. Once a co-tenant's interest in a tenancy
in common is transferred, the new owner steps into the shoes of the co-tenant
seller and becomes a tenant in common with the other co-tenants. Joint
Tenancy Joint
tenancy is sometimes called "joint tenancy with right of
survivorship." Joint tenancy ownership implied that a joint tenant lost
all interest in their property when they died. The deceased person's interest
was automatically transferred to the other joint tenant. Thus, in a joint tenancy, the last surviving
joint tenant owned all the property outright. If
you want to create a joint tenancy or take possession of property as joint
tenants, make sure that your lawyer or real estate agent is very careful about
the phrasing in the deed or will. In general, courts prefer very specific
wording that shows the desire to create a joint tenancy and the right of
survivorship and not a tenancy in common. For example, a deed or will
might include instructions that read "to A and B, as joint tenants with a
right of survivorship, and not as tenants in common." Sometimes,
under state law, a joint tenancy will automatically convert to a tenancy in
common. For example, if joint tenants die simultaneously, their property is
treated as a tenancy in common by the courts, for purposes of inheritance and
estate distribution. And if two or more people inherit property from a last
surviving joint tenant, they do so as tenants in common instead of as joint
tenants. Tenancy
by the Entirety The third form of ownership -- tenancy
by the entirety -- is only available to a married couple who owns a piece of
property together. The couple must be married at the time they
acquire the property and must remain married in order for the tenancy by the
entirety to be valid. If a married
couple divorce after taking title to the property as tenants in entirety, they
then become tenants in common. The deed should recite the names as
follows: “John Doe and Jane Doe, husband and wife” or John Doe and Jane Doe,
his wife.” If silent, it is presumed that a married couple has taken as tenants
by the entirety. Not
all states recognize tenancies in entirety -- but those that do often presume
that a grant of property to a husband and wife automatically creates a tenancy
by the entirety, unless some other type of ownership is specified. If a
different form of ownership is desired between a husband and wife, then it must
be specified as either tenants in common or joint tenancy with right of
survivorship. Under a tenancy by the entirety in New York State, upon
the death of one spouse, the other spouse owns the property free and clear of
any encumbrances that may have been caused by the other spouse. Thus, if one
spouse sells or mortgages the survivorship interest to a third party, the third
party will get only a contingent interest.
For example, where the husband conveys or grants a mortgage to a third
party, the third party will get nothing if the husband predeceases the
wife. It the wife dies before the
husband, the third party will own the property outright, or will have an
enforceable mortgage on the husband’s full fee interest. Neither spouse can disinherit the other
spouse by leaving the property to someone else in their will. The Law Office of Jeanne M. Reardon assists New York property owners with
strategies to protect and pass on their homes and real estate investments. To speak with
an experienced New York deed attorney, call us at (516)
314-8433 or e-mail us. To learn more about our deed transfer services visit us
at: www.jreardonlaw.com/Deed-Transfer.html |
New TRID Rules
| Posted on April 2, 2017 at 10:30 PM |
 On October 3, 2015, the Consumer Financial Protection Bureau’s (CFPB) new
mortgage disclosure law, also known as the TRID went into effect. TRID will
help consumers be more informed regarding the closing cost. Here are 11
things you should know about the new law: 1. Initial Good Faith Estimate (GFE) and Truth in Lending disclosure (TIL)
are now combined into one new form called the Loan Estimate (LE). 2. Instead of the old forms such as the HUD-1 and Final TIL we now have the
Closing Disclosure (CD). Most major lenders will prepare the CD for the
borrower; some however may rely on settlement agents. The new form will
describe the loan terms, projected loan payments, closing cost at closing, loan
features such as assumption, escrow details, borrower’s liability at
foreclosure and others. The Sellers will also have a CD statement. 3. The CD will be provided by the Lender to the consumer/borrower at least
three days prior to the scheduled closing date but can be waived if consumer
has a “bona fide emergency”. 4. The Lender will now provide the borrower with list of closing service
providers so that they can shop for services. 5. If the following changes occur then a new CD must be issued with an
additional 3 day waiting period:
6. Closing fees subject to zero tolerance unless otherwise excepted.
7. How do you determine what category you fall in?
8. Fees that can’t increase:
9. Any variation of the above must be refunded no later than 60 days after
closing. 10. Seller will receive CD by or at closing. This will be prepared by the
bank attorney in addition to the statement provided by the Seller’s lawyer. 11. TRID will not apply
to: HELOCS, Reverse Mortgages, Commercial Loans and lenders who make 5 or less
loans per year. The Closing process will be more organized, with all the numbers worked out
about a week prior to closing so there are no surprises on the closing day. |
A Strong Contract Lays the Foundation for a Successful Real Estate Transaction
| Posted on January 22, 2017 at 3:43 PM |
 Buyers
and sellers involved in a residential or commercial real estate
transaction have different issues and goals. The
real estate contract or purchase agreement is the single most important
document in the
transaction. A well drafted contract that accurately reflects your
interests and addresses potential problems is critical to a successful
real estate transaction. At the Law Office of Jeanne M. Reardon, we
have more than 20 years of experience negotiating, drafting and
reviewing contracts.A strong, well drafted contract
provides the protection you need by anticipating and
minimizing the risks involved in buying and selling real estate. Jeanne
M. Reardon has the knowledge and experience that it takes to negotiate
and draft real estate contracts
that aim to protect her clients' interests, their down payment and
lessen their overall risks. The standard New
York real estate contract does not ordinarily include all the nuances of
your particular transaction. Usually the real estate broker will
submit the basic terms of the deal such as purchase price, down payment,
financing terms and nothing more. Only an experienced real estate
attorney will have the knowledge to anticipate all the issues at hand
and ensure that they are properly addressed in the drafting and
negotiating of the real estate contract. Some issues that an experienced real estate attorney will anticipate and aim to have addressed in a contract include:
Attorney Jeanne M. Reardon is licensed to practice in New York, and she
has extensive experience in handling real estate contracts, including
Fannie Mae REO contracts. Contact a Skilled Long Island Real Estate Attorney Whether you are buying or selling your home, please do not enter into a
contract before contacting our office because no standard contract can
adequately address all the special circumstances of your transaction. Our services can help to protect your interests, and save you time and money. We provide a free initial consultation to all of our potential clients. To discuss your real estate issue with an
experienced Long Island real estate lawyer call 516-314-8433 or e-mail us. |
Why You Need a Real Estate Lawyer When You Buy or Sell a House
| Posted on May 17, 2016 at 11:06 PM |
 Whether you are buying or selling a home, your team of expert advisers
should include a real estate closing attorney.
Real estate closings are complicated matters and require a thorough knowledge of the law.
With a decision as serious as buying and selling real estate, it is
important that you are guided throughout every step of the
closing process by an experienced and knowledgeable real estate lawyer.
The purchase of a home
is often the single largest financial transaction you will
ever make in your life. Why not ensure that all your bases are covered
by retaining a
closing lawyer to represent your interests and guide you through the
process. How a Closing Lawyer Can Help The
real estate attorney performs many time consuming tasks preparing for a
closing. A real estate closing involves a series of complex phases:
contract drafting and
negotiation, document review, examination of the title, completion
and explanation of legal documents, and resolution of any possible
title difficulties. An experienced real estate attorney oversees the
entire process so that you are not overwhelmed by the
paperwork involved, the disclosures that need to be made, inspections,
loan documents, title insurance and affidavits, and unforeseen issues
that can suddenly turn a sure sale into a disaster. Drafting and Negotiating the Contract of Sale Since real estate attorneys have sophisticated
experience with many types of real estate transactions, it is prudent
for a buyer or seller to ask their real estate lawyer to negotiate the
terms and conditions of their real estate deal. Once the negotiations are complete,
the real estate attorney drafts the
real estate contract, also
known as the Contract of Sale, which incorporates all the terms of the
transaction as negotiated. There are also other numerous documents
associated with a real estate closing. It can be hard to review and
understand all of them.
Missing even one clause can change an entire legal document so it is
important to have a trained real estate attorney aid in the process so
that no issue is overlooked and everything is done in your best interest.
Title Issues A
real estate attorney examines the title records for prior conveyances, unpaid mortgages,
liens, judgments, easements, and other encumbrances and clouds on title. They
verify that the seller has the authority to convey a good title to the property
and that no errors exist in the deeds in the chain of title. Closing Documents A
real estate attorney prepares all relevant information into one set of
closing
documents. A
closing statement should be prepared prior to the closing indicating
the debits and credits to the buyer and seller. An attorney is helpful
in explaining the nature, amount, and fairness of closing costs. If the
attorney is representing a seller, the attorney would also prepare the
deed and state transfer tax documents. At the closing, the attorney
provides detailed explanations of the
documents to insure that the parties understand all issues involved in
the transaction and the disbursement of the funds. Attend the Closing The
actual closing day is the most important phase in the purchase and sale
transaction and having a real estate attorney there to represent you is
critical. Title
passes from seller to buyer, who pays the balance of the purchase price.
The deed and mortgage instruments are signed, and your attorney can
assure you that these documents correctly reflect all the terms of the
transaction and are appropriately executed. There
may also be last minute disputes about issues arising during the final
walk-through and delivering possession or the adjustment of various
costs, such as fuel and water. If you are represented by an experienced
real estate attorney you can rest assured that these issues will be
properly addressed and your interests protected which might not
necessarily be the case if you are not represented by an attorney. Retain Closing Lawyer Jeanne M. Reardon Jeanne
M. Reardon is a Long Island real estate attorney who has handled
thousands of closings during her over 20 years of practice. She has
dealt
with any possible issue that may arise in a real estate transaction and
will advise you regarding your selling or purchasing of a home during
each step and phase of a real estate transaction. Call her today if you
plan to sell or buy a home in the Long Island or the Greater New York
area at (516) 314-8433. |
