A clear title is a title free from any liens or defects. I typically put modifications into a contract to say that the purchaser has a right to cancel the contract and receive a full refund of their down payment in the event the seller cannot deliver a clear title.
We also want to make sure there are no easements on the property that may restrict how we could use the property or any other agreements, such as a fence agreement or a license agreement.
What Are The Remedies If a Buyer or a Seller Defaults Under Contract?
Typically, if a seller defaults, the buyer has the right of specific performance. This means the buyer can sue, go to court, and ask the judge to order the seller to sell the home to them. If the judge orders the seller to sell and the seller doesn’t, the judge can appoint a referee to sign over the deed. We try to limit the buyer’s responsibility in the case of a default to their down payment, which is typically 10 percent. If the buyer changes their mind after signing the contract, they could lose their down payment and that’s where having an attorney to negotiate every paragraph is a key.
Once A Real Estate Transaction Is Complete, Is There Any Grey Period Where Either Party Can Back Out?
Typically, on a residential purchase, there is no grey period. On a commercial property, there could be a due diligence period where the prospective buyer wants to do an environmental assessment or a zoning analysis. If the purchaser wasn’t satisfied with the answers, they would be able to cancel the contract and get their money back.
How Long Does A Typical Real Estate Transaction Take To Be Completed In New York?
In a typical residential purchase where there is no bank involved, you can close in as little as 30 days or even sooner. Where there’s a bank involved, it’s generally 45 to 60 days. In a commercial setting, it depends on what due diligence is required. It could be anywhere from 45 days to six months or more, if tenants have to be removed and relocated.
What Things Should Someone Know Prior To Partaking In A Real Estate Transaction?
For executives or people who are really busy, part of what the Platinum Property Transfer System offers is that they can sign a power of attorney, or appoint me as an assistant secretary in the case of a corporation or an LLC, and then we handle everything. We don’t require a buyer or seller to even come to the closing. They would wire us the money and we would take care of getting all the checks that they needed if they were buying. If they were selling, we would handle all the documentation, get the money from the purchaser, and wire the seller the money once it was closed. We’ve done this for the over last 23 years with transactions up to $10,000,000 and wired money all over the world, without incident. We take all the stress out of buying or selling real estate.
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