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
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.
order to benefit from the protections allowed by the mortgage
contingency clause the buyer must strictly abide by all its terms, i.
Title insurance is crucial for a home buyer because it protects you and
the lender from the possibility that your seller doesn't -- or previous
sellers didn't -- have free and clear ownership of the house and
property and, therefore, can't rightfully transfer full ownership to
you. Problems with the title can limit your use and enjoyment of the
property, as well as cause you financial loss. This is why you need
Your real estate attorney will arrange the process of getting you
title insurance soon after your Contract of Sale is signed.
standard refinance paying off an existing mortgage with the proceeds
from a new loan. In order to decide whether this is worthwhile, the
savings in interest must be weighed against the fees associated with
refinancing. Other reasons to refinance include reducing the term of a
longer mortgage, or switching between an adjustable-rate and a
Acash-out refinanceis taking a loan for more than you owe on your existing
mortgage. Your existing mortgage is paid off from the new loan proceeds
and you receive the balance of the new loan.
Will you pay tax on the sale of your home? Likely not, unless you
have gains that are more than $250,000 or more than $500,000 for married
Until 1997, once you reached the age
of 55, you had the one-time option of excluding up to $125,000 of gain
on the sale of your home providing it was your primary residence.
Now, anyone, regardless of age, can excludeup to $250,000
of gain or $500,000 for a married couple filing jointly on the sale of a home.
That means most people will pay no tax unless they have lived there for less than 2 out of the last 5 years