NEW YORK CITY RESIDENTIAL CONTRACT OF SALE NOTE: FIRE AND CASUALTY LOSSES AND CONDEMNATION. This contract form does not provide for what happens in the event of fire, or other casualty loss or condemnation before the title closing. Unless different provision is made in this contract, Section 5-1311 of the General Obligations Law will apply. One part of that law makes a Purchaser responsible for fire and casualty loss upon taking possession of the Premises before the title closing. WARNING: PLAIN LANGUAGE. No representation is made that this form of contract for the sale and purchase of real estate complies with Section 5-702 of the General Obligations Law (“Plain Language”). NOTE: IN LIEU OF A SEPARATE RIDER, THIS CONTRACT HAS BEEN MODIFIED THROUGHOUT THE CONTRACT. ALL MODIFICATIONS ARE INDICATED EITHER UNDERLINED, BOLD PRINT OR BY STRIKEOUT. CONTRACT OF SALE made as of [DATE] Between [SELLER NAME & ADDRESS] hereinafter called “Seller” and [BUYER NAME & ADDRESS] hereinafter called “Purchaser.” The parties hereby agree as follows: 1. Premises. Seller shall sell and convey and Purchaser shall purchase the property, together with all buildings and improvements thereon (collectively the “Premises”), more fully described on a separate page marked “Schedule A,” annexed hereto and made a part hereof and also known as: STREET ADDRESS: Tax Map Designation: Section Block Lot County Together with Seller’s ownership and rights, if any, to land lying in the bed of any street or highway, opened or proposed, adjoining the Premises to the center line thereof, including any right of Seller to any unpaid award by reason of any taking by condemnation and/or for any damage to the Premises by reason of change of grade of any street or highway. Seller shall deliver at no additional cost to Purchaser, at Closing (as hereinafter defined), or thereafter, on demand, any documents that Purchaser may reasonably require for the conveyance of such title and the assignment and collection of such award or damages. 2. Personal Property. This sale also includes all fixtures and articles of personal property now attached or appurtenant to the Premises, unless specifically excluded below. Seller represents and warrants that at Closing they will be paid for and owned by Seller, free and clear of all liens and encumbrances, except any existing mortgage to which this sale may be subject. They include, but are not, awnings, storm windows, storm doors, window boxes, mail box, TV aerials, weather vane, flagpole, pumps, shrubbery, fencing, outdoor statuary, tool shed, dishwasher, washing machine, clothes dryer, garbage disposal unit, range, oven, built-in microwave oven, refrigerator, freezer, air conditioning equipment and installations, wall to wall carpeting and built-ins not excluded below. ALL AS PRESENTLY EXISTS Excluded from this sale are furniture and household furnishings and PROPERTY TO BE DELIVERED AS IS CONDITION 3. Purchase Price. The purchase price is $[AMOUNT] payable as follows: (a) on the signing of this contract, by Purchaser’s good check payable to the Escrowee (as hereinafter defined), subject to collection, the receipt of which is hereby acknowledged, to be held in escrow pursuant to paragraph 6 of this contract (the “Downpayment”): $[AMOUNT] (b) by allowance for the principal amount unpaid on the existing mortgage on the date hereof, payment of which Purchaser shall assume by joinder in the deed: $[AMOUNT] (c) by a purchase money note and mortgage from Purchaser to Seller: $[AMOUNT] (d) balance at Closing in accordance with paragraph 7: $[AMOUNT] 4. Existing Mortgage. (Delete if inapplicable) If this sale is subject to an existing mortgage as indicated in paragraph 3(b) above:
5. Purchase Money Mortgage. (Delete if inapplicable) If there is to be a purchase money mortgage as indicated in paragraph 3(c) above:
(a) The purchase money note and mortgage shall be drawn by the attorney for Seller in the form attached or, if not, in the standard form adopted by the New York State Land Title Association. Purchaser shall pay at Closing the mortgage recording tax, recording fees and the attorney’s fees in the amount of $________ for its preparation. (b) The purchase money note and mortgage shall also provide that it is subject and subordinate to the lien of the existing mortgage and any extensions, modifications, replacements or consolidations of the existing mortgage, provided that (i) the interest rate thereof shall not be greater than ___ percent per annum and the total debt service thereunder shall not be greater than $________ per annum, and (ii) if the principal amount thereof shall exceed the amount of principal owing and unpaid on the existing mortgage at the time of placing such new mortgage or consolidated mortgage, the excess be paid to the holder of such purchase money mortgage in reduction of the principal thereof. The purchase money mortgage shall also provide that such payment to the holder thereof shall not alter or affect the regular installments, if any, of principal payable thereunder and that the holder thereof will, on demand and without charge therefor, execute, acknowledge and deliver any agreement or agreements further to effectuate such subordination. 6. Downpayment in Escrow. (a) Seller’s attorney (“Escrowee”) shall hold the Downpayment in escrow in a segregated bank account at [BANK NAME] Address: until Closing or sooner termination of this contract and shall pay over or apply the Downpayment in accordance with the terms of this paragraph. Escrowee shall hold the Downpayment in a(n)non- interest-bearing account for the benefit of the parties. If interest is held for the benefit of the parties, it shall be paid to the party entitled to the Downpayment and the party receiving the interest shall pay any income taxes thereon. If interest is not held for the benefit of the parties, the Downpayment shall be placed in an IOLA account or as otherwise permitted or required by law. The Social Security or Federal Identification numbers of the parties shall be furnished to Escrowee upon request. At Closing, the Downpayment shall be paid by Escrowee to Seller. If for any reason Closing does not occur and either party gives Notice (as defined in paragraph 25) to Escrowee demanding payment of the Downpayment, Escrowee shall give prompt Notice to the other party of such demand. If Escrowee does not receive Notice of objection from such other party to the proposed payment within 10 business days after the giving of such Notice, Escrowee is hereby authorized and directed to make such payment. If Escrowee does receive such Notice of objection within such 10 day period or if for any other reason Escrowee in good faith shall elect not to make such payment, Escrowee shall continue to hold such amount until otherwise directed by Notice from the parties to this contract or a final, nonappealable judgment, order or decree of a court. However, Escrowee shall have the right at any time to deposit the Downpayment and the interest thereon with the clerk of a court in the county in which the Premises are located and shall give Notice of such deposit to Seller and Purchaser. Upon such deposit or other disbursement in accordance with the terms of this paragraph, Escrowee shall be relieved and discharged of all further obligations and responsibilities hereunder. (b) The parties acknowledge that, Escrowee is acting solely as a stakeholder at their request and for their convenience and that Escrowee shall not be liable to either party for any act or omission on its part unless taken or suffered in bad faith or in willful disregard of this contract or involving gross negligence on the part of Escrowee. Seller and Purchaser jointly and severally (with right of contribution) agree to defend (by attorneys selected by Escrowee), indemnify and hold Escrowee harmless from and against all costs, claims and expenses (including reasonable attorneys’ fees) incurred in connection with the performance of Escrowee’s duties hereunder, except with respect to actions or omissions taken or suffered by Escrowee in bad faith or in willful disregard of this contract or involving gross negligence on the part of Escrowee. (c) Escrowee may act or refrain from acting in respect of any matter referred to herein in full reliance upon and with the advice of counsel which may be selected by it (including any member of its firm) and shall be fully protected in so acting or refraining from acting upon the advice of such counsel. (d) Escrowee acknowledges receipt of the Downpayment by check subject to collection and Escrowee’s agreement to the provisions of this paragraph by signing in the place indicated on the signature page of this contract. (e) Escrowee or any member of its firm shall be permitted to act as counsel for Seller in any dispute as to the disbursement of the Downpayment or any other dispute between the parties whether or not Escrowee is in possession of the Downpayment and continues to act as Escrowee. (f) The party whose attorney is Escrowee shall be liable for loss of the Downpayment. (g) In no event, unless it is mandatory to maintain the action, shall Seller’s attorney be made a party to any lawsuit seeking return of the sum held provided that Seller’s attorney shall, upon request, provide a letter verifying that he continues to hold the sum in dispute and that same will not be disbursed absent a court order or acknowledged Stipulation between the parties. Escrow agent shall not be required to invest the down payment in an interest bearing account or other income producing investment. 7. Acceptable Funds. All money payable under this contract, unless otherwise specified, shall be paid by: (a) Cash, but not over $1,000.00; (b) Good certified check of Purchaser drawn on or official check issued by any bank, savings bank, trust company or savings and loan association having a banking office in the State of New York, unendorsed and payable to the order of Seller, or as Seller may otherwise direct upon reasonable prior notice (by telephone or otherwise) to Purchaser; (b1) All checks issued by a funding or settlement company or mortgage banker shall be certified prior to presentment at closing; (c) As to money other than the purchase price payable to Seller at Closing, uncertified check of Purchaser up to the amount of $500.00; and (d) As otherwise agreed to in writing by Seller or Seller’s attorney. 8. Mortgage Commitment Contingency. (Delete paragraph if inapplicable. For explanation, see Notes on Mortgage Commitment Contingency Clause.) (a) The obligation of Purchaser to purchase under this contract is conditioned upon issuance, on or before 30 days after a fully executed copy of this contract is given to Purchaser or Purchaser’s attorney in the manner set forth in paragraph 25 or subparagraph 8(j) (the “Commitment Date”), of a written commitment from an Institutional Lender pursuant to which such Institutional Lender agrees to make a first mortgage loan, other than a VA, FHA or other governmentally insured loan, to Purchaser, at Purchaser’s sole cost and expense, of $[AMOUNT] for a term of at least 15/30 years (or such lesser sum or shorter term as Purchaser shall be willing to accept) at the prevailing fixed or adjustable rate of interest and on other customary commitment terms (the “Commitment”). To the extent a Commitment is conditioned on the sale or lease of Purchaser’s current home, payment of any outstanding debt, no material adverse change in Purchaser’s financial condition or any other customary conditions, Purchaser accepts the risk that such conditions may not be met; however, a commitment conditioned on the Institutional Lender’s approval of an appraisal shall not be deemed a “Commitment” hereunder until an appraisal is approved (and if that does not occur before the Commitment Date, Purchaser may cancel under subparagraph 8(e) unless the Commitment Date is extended). Purchaser’s obligations hereunder are conditioned only on issuance of a Commitment. Once a Commitment is issued, Purchaser is bound under this contract even if the lender fails or refuses to fund the loan for any reason. (b) Purchaser shall (i) make prompt application to one or, at Purchaser’s election, more than one Institutional Lender for such mortgage loan, (ii) furnish accurate and complete information regarding Purchaser and members of Purchaser’s family, as required, (iii) pay all fees, points and charges required in connection with such application and loan, (iv) pursue such application with diligence, and (v) cooperate in good faith with such Institutional Lender(s) to obtain a Commitment. Purchaser shall accept a Commitment meeting the terms set forth in subparagraph 8(a) and shall comply with all requirements of such Commitment (or any other commitment accepted by Purchaser). Purchaser shall furnish Seller with a copy of the Commitment promptly after receipt thereof. (c) (Delete this subparagraph if inapplicable) Prompt submission by Purchaser of an application to a mortgage broker registered pursuant to Article 12-D of the New York Banking Law (“Mortgage Broker”) shall constitute full compliance with the terms and conditions set forth in subparagraph 8(b)(i), provided that such Mortgage Broker promptly submits such application to such Institutional Lender(s). Purchaser shall cooperate in good faith with such Mortgage Broker to obtain a Commitment from such Institutional Lender(s). (d) If all Institutional Lenders to whom applications were made deny such applications in writing prior to the Commitment Date, Purchaser may cancel this contract by giving Notice thereof to Seller, with a copy of such denials, provided that Purchaser has complied with all its obligations under this paragraph 8. (e) If no Commitment is issued by the Institutional Lender on or before the Commitment Date, then, unless Purchaser has accepted a written commitment from an Institutional Lender that does not conform to the terms set forth in subparagraph 8(a), Purchaser may cancel this contract by giving Notice to Seller within 5 business days after the Commitment Date, provided that such Notice includes the name and address of the Institutional Lender(s) to whom application was made and that Purchaser has complied with all its obligations under this paragraph 8. (f) If this contract is canceled by Purchaser pursuant to subparagraphs 8(d) or (e), neither party shall thereafter have any further rights against, or obligations or liabilities to, the other by reason of this contract, except that the Downpayment shall be promptly refunded to Purchaser and except as set forth in paragraph 27. (g) If Purchaser fails to give timely Notice of cancellation or if Purchaser accepts a written commitment from an Institutional Lender that does not conform to the terms set forth in subparagraph 8(a), then Purchaser shall be deemed to have waived Purchaser’s right to cancel this contract and to receive a refund of the Downpayment by reason of the contingency contained in this paragraph 8. (h) If Seller has not received a copy of a commitment from an Institutional Lender accepted by Purchaser by the Commitment Date, Seller may cancel this contract by giving Notice to Purchaser within 5 business days after the Commitment Date, which cancellation shall become effective immediately. unless Purchaser delivers a copy of such commitment to Seller within 10 business days after the Commitment Date. After such cancellation neither party shall have any further rights against, or obligations or liabilities to, the other by reason of this contract, except that the Downpayment shall be promptly refunded to Purchaser (provided Purchaser has complied with all its obligations under this paragraph 8) and except as set forth in paragraph 27. (i) For purposes of this contract, the term “Institutional Lender” shall mean any bank, savings bank, private banker, trust company, savings and loan association, credit union or similar banking institution whether organized under the laws of this state, the United States or any other state; foreign banking corporation licensed by the Superintendent of Banks of New York or regulated by the Comptroller of the Currency to transact business in New York State; insurance company duly organized or licensed to do business in New York State; mortgage banker licensed pursuant to Article 12-D of the Banking Law; and any instrumentality created by the United States or any state with the power to make mortgage loans. (j) For purposes of subparagraph 8(a), Purchaser shall be deemed to have been given a fully executed copy of this contract on the third business day following the date of ordinary or regular mailing, postage prepaid. (k) If the Purchaser is unable to secure said mortgage by the aforementioned date, then the Sellers may, at their option, extend the time period for the Purchaser to obtain the mortgage commitment for up to an additional thirty days (30) and Purchaser agrees to be bound thereby. The Seller, at their option, may extend the “on or about” closing date agreed to in Paragraph 15 of this contract of sale by the same number of days. (l) It shall be the sole obligation of the Purchaser, if the Purchaser is issued a mortgage commitment, to obtain any necessary time extensions to his mortgage commitment in the event his commitment expires sooner than one (1) month beyond the “on or about” closing date agreed to in Paragraph 15 of this contract of sale. (m) If the mortgage to which this contract is subject is not approved in the amount set forth above but is approved for a lesser amount, the Seller shall have the option to reduce the purchase price by the same amount as the mortgage has been reduced and, thereupon, the Purchaser will accept the mortgage in such reduced amount and will complete the sale at such reduced purchase price. (n) If the Purchaser’s mortgage commitment is conditional upon the sale and/or lease of Purchaser’s present residence, it shall not be a condition under the terms of this contract and as to that condition, the commitment shall be considered firm. (o) The Purchaser represents that (1) he/she/they is/are duly employed; (p) If the Purchaser is making application for a mortgage greater than 80% loan-to-value, the Purchaser represents that his/her/their combined annual income is at least $_________________not including overtime. (q) The Purchaser further represents that to the best of his/her/their knowledge, he/she/they has/have no tax liens, or any other judgments against him/her/them, anticipate no liens or judgments pending against him/her/them and has/have never filed a bankruptcy petition and make these aforesaid representations knowing that the Seller herein is relying upon the truth thereof. (r) Purchaser represents that with the mortgage proceeds being applied for herein, he/she/they has/have sufficient funds to complete this transaction pursuant to Contract terms herein and acknowledges that Seller is relying on such representation. (s) Purchaser represents that he/she/they is/are not aware of any credit history that will prevent him/her/them from getting a mortgage. (t) Seller is under no obligation to make any repairs or improvements to the premises that may be required by the lending institution or any governmental agency for approval of Purchaser’s request for a mortgage loan. Seller’s sole liability shall be to return the Purchaser’s downpayment. 9. Permitted Exceptions. The Premises are sold and shall be conveyed subject to: (a) Zoning and subdivision laws and regulations, and landmark, historic or wetlands designation, provided that they are not violated by the existing buildings and improvements erected on the property or their use; (b) Consents for the erection of any structures on, under or above any streets on which the Premises abut; (c) Encroachments of stoops, areas, cellar steps, trim and cornices, if any, upon any street or highway; (d) Real estate taxes that are a lien, but are not yet due and payable; and (e) The other matters, if any, including a survey exception, set forth in (f) through (j) below: (f) Any state of facts an accurate survey may show, provided same does not render title unmarketable; (g) Declarations, covenants, restrictions, reservations, utility easements, drainage easements and agreements if any, of record, insofar as same may now be in force or effect, provided same are not violated by present structures or the present use of premises; (h) Any law, regulation or ordinance (including but not limited to zoning, building and environmental protection) of record provided same are not violated by present structures or use; (i) Variations between record lines and fences, hedges, curbs, driveways, sidewalks and retaining walls; (j)Violations of any covenants and restrictions by existing improvements shall not be deemed an objection to title provided the title company insuring title shall agree to insure the mortgagee that such improvements may remain in their present location as long as same shall stand; 10. Governmental Violations and Orders. (a) Seller shall comply with all notes or notices of violations of law or municipal ordinances, orders or requirements noted or issued as of the date hereof by any governmental department having authority as to lands, housing, buildings, fire, health, environmental and labor conditions affecting the Premises. The Premises shall be conveyed free of them at Closing. Seller shall furnish Purchaser with any authorizations necessary to make the searches that could disclose these matters. (b) (Delete if inapplicable) All obligations affecting the Premises pursuant to the Administrative Code of the City of New York incurred prior to Closing and payable in money shall be discharged by Seller at or prior to Closing. (c) Notwithstanding anything to the contrary contained herein, if there are any notes or notices of violations against the premises at the date hereof, the Seller(s) shall only be obligated to expend a maximum of $500.00 to remove said violations. If the cost of removing such violations exceeds said sum, Seller(s) may cancel this contract, subject to Purchaser(s)’s option to accept title to the premises with such violations outstanding and with a credit of said sum in reduction of the purchase price or cancel the Contract with return of the Down Payment. In the event of such cancellation, the sole liability of the Seller(s) will be to refund to the Purchaser(s) the amount paid on the account of the purchase price and to pay the net cost of examining the title, which cost is not to exceed the charges fixed by the New York Board of Title Underwriters and cost of survey charges, if any, and upon such refund and payment being made this contract shall be canceled. 11. Seller’s Representations. (a) Seller represents and warrants to Purchaser that: (i) The Premises abut or have a right of access to a public road; (ii) Seller is the sole owner of the Premises and has the full right, power and authority to sell, convey and transfer the same in accordance with the terms of this contract; (iii) Seller is not a “foreign person,” as that term is defined for purposes of the Foreign Investment in Real Property Tax Act, Internal Revenue Code (“IRC”) Section 1445, as amended, and the regulations promulgated thereunder (collectively “FIRPTA”); (iv) The Premises are not affected by any exemptions or abatements of taxes; and (v) Seller has been known by no other name for the past ten years, except none (b) Seller covenants and warrants that all of the representations and warranties set forth in this contract shall be true and correct at Closing. (c) Except as otherwise expressly set forth in this contract, none of Seller’s covenants, representations, warranties or other obligations contained in this contract shall survive Closing. 12a. Entire Agreement. This agreement contains the entire agreement between the parties and shall not be modified except in writing signed by the Seller(s) and Purchaser(s) or their respective attorneys. If there are any preliminary agreements, deposits or binders, the same are hereby merged in and superseded by this written agreement. This agreement is binding upon the parties, their heirs, successors, administrators and/or assigns. 12b. Condition of Property. Purchaser acknowledges and represents that Purchaser is fully aware of the physical condition and state of repair of the Premises and of all other property included in this sale, based on Purchaser’s own inspection and investigation thereof, and that Purchaser is entering into this contract based solely upon such inspection and investigation and not upon any information, data, statements or representations, written or oral, as to the physical condition, state of repair, use, cost of operation or any other matter related to the Premises or the other property included in the sale, given or made by Seller or its representatives, and shall accept the same “as is” in their present condition and state of repair, subject to reasonable use, wear, tear and natural deterioration between the date hereof and the date of closing (except as otherwise set forth in paragraph 16(e)), without any reduction in the purchase price or claim of any kind for any change in such condition by reason thereof subsequent to the date of this contract. Purchaser and its authorized representatives shall have the right, at reasonable times and upon reasonable notice (by telephone or otherwise) to Seller, to inspect the Premises before Closing. Supplementing this provision, the Purchaser shall have the right to inspect the premises during the forty-eight (48) hour period prior to the closing hereunder (and delivery of possession, if applicable) upon reasonable notice to the Seller. If the Purchaser fails to inspect, then the rights granted hereunder with respect thereto shall be deemed waived and closing shall occur without such an inspection. Purchaser agrees to indemnify and hold Seller harmless from and against any and all claims, losses, costs or damages arising out of or from the acts of Purchaser and/or Purchaser’s agents and representatives during the periods of time when access has been granted to the premises in accordance with the provisions of this paragraph. 13. Insurable Title. Seller shall give and Purchaser shall accept such title as any reputable title company shall be willing to approve and insure in accordance with its standard form of title policy approved by the New York State Insurance Department, subject only to the matters provided for in this contract. 14. Closing, Deed and Title. (a) “Closing” means the settlement of the obligations of Seller and Purchaser to each other under this contract, including the payment of the purchase price to Seller, and the delivery to Purchaser of a Bargain & Sale with Covenants Against Grantor’s Acts deed in proper statutory short form for record, duly executed and acknowledged, so as to convey to Purchaser fee simple title to the Premises, free of all encumbrances, except as otherwise herein stated. The deed shall contain a covenant by Seller as required by subd. 5 of Section 13 of the Lien Law. (b) If Seller is a corporation, it shall deliver to Purchaser at the time of Closing (i) a resolution of its Board of Directors authorizing the sale and delivery of the deed, and (ii) a certificate by the Secretary or Assistant Secretary of the corporation certifying such resolution and setting forth facts showing that the transfer is in conformity with the requirements of Section 909 of the Business Corporation Law. The deed in such case shall contain a recital sufficient to establish compliance with that Section. 15. Closing Date and Place. Closing shall take place at the office of [NAME] at [TIME] o’clock ON OR BEFORE [DAY] upon reasonable notice (by telephone or otherwise) by Purchaser, at the office of the lending institution or its attorney. If the Purchaser’s lending institution has an office for closing mortgages within the counties of Queens or Nassau, the closing shall take place within said county. 16. Conditions to Closing. This contract and Purchaser’s obligation to purchase the Premises are also subject to and conditioned upon the fulfillment of the following conditions precedent: (a) The accuracy, as of the date of Closing, of the representations and warranties of Seller made in this contract. (b) The delivery by Seller to Purchaser of a valid and subsisting Certificate of Occupancy or other required certificate of compliance, or evidence that none was required, covering the building(s) and all of the other improvements located on the property authorizing their use as a _ family dwelling at the date of Closing, except garden or utility sheds, decks, fences, awnings or non-enclosed patio roofs and/or porches, aboveground swimming pools, stoops, hot tubs or recreational type structures such as swing sets, playhouses, sandboxes and the like. (c) The delivery by Seller to Purchaser of a certificate stating that Seller is not a foreign person, which certificate shall be in the form then required by FIRPTA, or a withholding certificate from the I.R.S. If Seller fails to deliver the aforesaid certificate or if Purchaser is not entitled under FIRPTA to rely on such certificate, Purchaser shall deduct and withhold from the purchase price a sum equal to 10% thereof (or any lesser amount permitted by law) and shall at Closing remit the withheld amount with the required forms to the Internal Revenue Service. (d) The delivery of the Premises and all buildings(s) and improvements comprising a part thereof in broom clean condition, vacant and free of leases or tenancies, together with keys to the Premises. All plumbing (including water supply and septic systems, if any), heating and air conditioning, if any, electrical and mechanical systems, equipment and machinery in the buildings(s) located on the property and all appliances which are included in this sale are to be in working order as of the date of Closing. Notwithstanding anything set forth herein to the contrary herein, if any appliances should not be in working order as required herein, seller’s liability shall be limited to a maximum monetary amount of one hundred dollars ($100.00) per appliance. (f) If the Premises are a one or two family house, delivery by the parties at Closing of affidavits in compliance with state and local law requirements to the effect that there is installed in the Premises a smoke detecting alarm device or devices. (g) The delivery by the parties of any other affidavits required as a condition of recording the deed. 17. Deed Transfer and Recording Taxes. At Closing, certified or official bank checks payable to the order of the appropriate State, City or County officer in the amount of any applicable transfer and/or recording tax payable by reason of the delivery or recording of the deed or mortgage, if any, shall be delivered by the party required by law or by this contract to pay such transfer and/or recording tax, together with any required tax returns duly executed and sworn to, and such party shall cause any such checks and returns to be delivered to the appropriate officer promptly after Closing. The obligation to pay any additional tax or deficiency and any interest or penalties thereon shall survive Closing. 18. Apportionments and Other Adjustments; Water Meter and Installment Assessments. (a) To the extent applicable, the following shall be apportioned as of midnight of the day before the day of Closing: (i) taxes, water charges and sewer rents, on the basis of the fiscal period for which assessed; (ii) fuel; (iii) interest on the existing mortgage; (iv) premiums on existing transferable insurance policies and renewals of those expiring prior to Closing; (v) vault charges; (vi) rents as and when collected. (b) If Closing shall occur before a new tax rate is fixed, the apportionment of taxes shall be upon the basis of the tax rate for the immediately preceding fiscal period applied to the latest assessed valuation. (c) If there is a water meter on the Premises, Seller shall furnish a reading to a date not more than 30 days before Closing and the unfixed meter charge and sewer rent, if any, shall be apportioned on the basis of such last reading. (d)If at the date of Closing the premises are affected by an assessment which is or may become payable in annual installments, and the first installment is then a lien, or has been paid, then for the purposes of this contract all the unpaid installments shall be considered due and shall be paid by Seller at or prior to Closing. (d1) If premises is part of a Home Owners Association and any assessments are paid on a monthly basis, the assessment will be adjusted the same as the Home Owners Association dues, if any, for the current month and Purchaser will assume all obligations of paying the assessment thereafter. (e) Any errors or omissions in computing apportionments or other adjustments at Closing shall be corrected within a reasonable time following Closing. This subparagraph shall survive Closing. 19. Allowance for Unpaid Taxes, etc. Seller has the option to credit Purchaser as an adjustment to the purchase price with the amount of any unpaid taxes, assessments, water charges and sewer rents, together with any interest and penalties thereon to a date not less than five business days after Closing, provided that official bills therefor computed to said date are produced at Closing. 20. Use of Purchase Price to Remove Encumbrances. If at Closing there are other liens or encumbrances that Seller is obligated to pay or discharge, Seller may use any portion of the cash balance of the purchase price to pay or discharge them, provided Seller shall simultaneously deliver to Purchaser at Closing instruments in recordable form and sufficient to satisfy such liens or encumbrances of record, together with the cost of recording or filing said instruments. As an alternative Seller may deposit sufficient moneys with the title insurance company employed by Purchaser acceptable to and required by it to assure their discharge, but only if the title insurance company will insure Purchaser’s title clear of the matters or insure against their enforcement out of the Premises and will insure Purchaser’s Institutional Lender clear of such matters. Upon reasonable prior notice (by telephone or otherwise), Purchaser shall provide separate certified or official bank checks as requested to assist in clearing up these matters. 21. Title Examination; Seller’s Inability to Convey; Limitations of Liability. (a) Purchaser shall order an examination of title in respect of the Premises from a title company licensed or authorized to issue title insurance by the New York State Insurance Department or any agent for such title company promptly after the execution of this contract or, if this contract is subject to the mortgage contingency set forth in paragraph 8, after a mortgage commitment has been accepted by Purchaser. Purchaser shall cause a copy of the title report and of any additions thereto to be delivered to the attorney(s) for Seller promptly after receipt thereof. (b)(i) If at the date of Closing, Seller is unable to transfer title to Purchaser in accordance with this contract, or Purchaser has other valid grounds for refusing to close, whether by reason of liens, encumbrances or other objections to title or otherwise (herein collectively called “Defects”), other than those subject to which Purchaser is obligated to accept title hereunder or which Purchaser may have waived and other than those which Seller has herein expressly agreed to remove, remedy or discharge and if Purchaser shall be unwilling to waive the same and to close title without abatement of the purchase price, then, except as hereinafter set forth, Seller shall have the right, at Seller’s sole election, either to take such action as Seller may deem advisable to remove, remedy, discharge or comply with such Defects or to cancel this contract; (ii) if Seller elects to take action to remove, remedy or comply with such Defects, Seller shall be entitled from time to time, upon Notice to Purchaser, to adjourn the date for Closing hereunder for a period or periods not exceeding 60 days in the aggregate (but not extending beyond the date upon which Purchaser’s mortgage commitment, if any, shall expire), and the date for Closing shall be adjourned to a date specified by Seller not beyond such period. If for any reason whatsoever, Seller shall not have succeeded in removing, remedying or complying with such Defects at the expiration of such adjournment(s), and if Purchaser shall still be unwilling to waive the same and to close title without abatement of the purchase price, then either party may cancel this contract by Notice to the other given within 10 days after such adjourned date; (iii) notwithstanding the foregoing, the existing mortgage (unless this sale is subject to the same) and any matter created by Seller after the date hereof shall be released, discharged or otherwise cured by Seller at or prior to Closing. (b)(ii) It is understood and agreed that nothing herein contained in this contract shall require the Seller to bring any action or proceeding; or incur any expense to remove any defect, lien, encumbrance, and/or to take such other actions as to render title marketable and/or insurable. However, in the event that the Seller shall be unable to convey title to the premises herein described, subject only to the encumbrances, terms and conditions specifically set forth herein, then and in such event, it is agreed that the Purchaser, at his option, may take such title as the Seller can convey, without abatement or reduction of the purchase price, or the Purchaser may refuse to take title and in that event, the only liability of the Seller shall be to cause the Escrowee to return the amount paid under this contract on account of the purchase price, together with the actual net cost of the examination of title and survey charges, if any, and upon payment of said sums, the Seller shall be released from any and all liability under this contract and this contract shall be deemed null and void and of no further effect. (b)(iii) In the event that the premises are benefited by a real property tax exemption of any kind, said exemption shall not be deemed an objection to title and adjustments between the Seller and Purchaser shall be made accordingly. (c) If this contract is cancelled pursuant to its terms, other than as a result of Purchaser’s default, this contract shall terminate and come to an end, and neither party shall have any further rights, obligations or liabilities against or to the other hereunder or otherwise, except that: (i) Seller shall promptly refund or cause the Escrowee to refund the Downpayment to Purchaser and, unless cancelled as a result of Purchaser’s default or pursuant to paragraph 8, to reimburse Purchaser for the net cost of examination of title, including any appropriate additional charges related thereto, and the net cost, if actually paid or incurred by Purchaser, for updating the existing survey of the Premises or of a new survey, and (ii) the obligations under paragraph 27 shall survive the termination of this contract. 22. Affidavit as to Judgments, Bankruptcies, etc. If a title examination discloses judgments, bankruptcies or other returns against persons having names the same as or similar to that of Seller, Seller shall deliver an affidavit at Closing showing that they are not against Seller. 23. Defaults and Remedies. (a) If Purchaser defaults hereunder, Seller’s sole remedy shall be to receive and retain the Downpayment as liquidated damages, it being agreed that Seller’s damages in case of Purchaser’s default might be impossible to ascertain and that the Downpayment constitutes a fair and reasonable amount of damages under the circumstances and is not a penalty. (b) If Seller defaults hereunder, Purchaser shall have such remedies as Purchaser shall be entitled to at law or in equity, including, but not limited to, specific performance. 24. Purchaser’s Lien. All money paid on account of this contract, and the reasonable expenses of examination of title to the Premises and of any survey and survey inspection charges, are hereby made liens on the Premises, but such liens shall not continue after default by Purchaser under this contract. 25. Notices. Any notice or other communication (“Notice”) shall be in writing and either (a) sent by either of the parties hereto or by their respective attorneys who are hereby authorized to do so on their behalf or by the Escrowee, by registered or certified mail, postage prepaid, or (b) delivered in person or by overnight courier, with receipt acknowledged, to the respective addresses given in this contract for the party and the Escrowee, to whom the Notice is to be given, or to such other address as such party or Escrowee shall hereafter designate by Notice given to the other party or parties and the Escrowee pursuant to this paragraph. Each Notice mailed shall be deemed given on the third business day following the date of mailing the same, except that any notice to Escrowee shall be deemed given only upon receipt by Escrowee and each Notice delivered in person or by overnight courier shall be deemed given when delivered, or (c) with respect to ¶7(b) or ¶20, or routine correspondence, sent by email to the party’s attorney. Each Notice by email shall be deemed given when transmission is confirmed by the sender’s email server. A copy of each Notice sent to a party shall also be sent to the party’s attorney. The attorneys for the parties are hereby authorized to give and receive on behalf of their clients all Notices and deliveries. This contract may be delivered as provided above or by ordinary mail. (d) Notwithstanding the above, all notices other than to the Escrowee, may be sent to a party’s attorney only, at the option of the sender. 26. No Assignment. This contract may not be assigned by Purchaser without the prior written consent of Seller in each instance and any purported assignment(s) made without such consent shall be void. 27. Broker. Seller and Purchaser each represents and warrants to the other that it has not dealt with any real estate broker in connection with this sale other than [BROKERS’ NAMES] (“BROKER”) and Seller shall pay Broker any commission earned pursuant to a separate agreement between Seller and Broker. Seller and Purchaser shall indemnify and defend each other against any costs, claims and expenses, including reasonable attorneys’ fees, arising out of the breach on their respective parts of any representation or agreement contained in this paragraph. The provisions of this paragraph shall survive Closing or, if Closing does not occur, the termination of this contract. 28. Miscellaneous. (a) All prior understandings, agreements, representations and warranties, oral or written, between Seller and Purchaser are merged in this contract; it completely expresses their full agreement and has been entered into after full investigation, neither party relying upon any statement made by anyone else that is not set forth in this contract. (b) Neither this contract nor any provision thereof may be waived, changed or cancelled except in writing. This contract shall also apply to and bind the heirs, distributees, legal representatives, successors and permitted assigns of the respective parties. The parties hereby authorize their respective attorneys to agree in writing to any changes in dates and time periods provided for in this contract. (c) Any singular word or term herein shall also be read as in the plural and the neuter shall include the masculine and feminine gender, whenever the sense of this contract may require it. (d) The captions in this contract are for convenience of reference only and in no way define, limit or describe the scope of this contract and shall not be considered in the interpretation of this contract or any provision hereof. (e) This contract shall not be binding or effective until duly executed and delivered by Seller and Purchaser. (f) Seller and Purchaser shall comply with IRC reporting requirements, if applicable. This subparagraph shall survive Closing. (g) Each party shall, at any time and from time to time, execute, acknowledge where appropriate and deliver such further instruments and documents and take such other action as may be reasonably requested by the other in order to carry out the intent and purpose of this contract. This subparagraph shall survive Closing. (h) This contract is intended for the exclusive benefit of the parties hereto and, except as otherwise expressly provided herein, shall not be for the benefit of, and shall not create any rights in, or be enforceable by, any other person or entity. (i) If applicable, the complete and fully executed disclosure of information on lead-based paint and/or lead-based paint hazards is attached hereto and made a part hereof. (j) Termite Inspection: The Purchaser shall have the right to have the premises inspected for the purpose of determining the evidence of live infestation by termites or other wood destroying insects or damages caused thereby. the cost of said inspection shall be borne by the Purchaser, except that if the Purchaser secured a “VA” mortgage, the cost is to be borne by the Seller. In the event such infestation or damage is found, a copy of the report issued by the termite company, or other written notice, shall be served upon the Seller’s attorney within fourteen days (14) from the date hereof. Upon receipt of such notice by the Seller’s attorney, the Seller may do one of the following: (a) eliminate the infestation and repair the damage, excluding fences and sheds, at his own cost and expense and provide a one year (1) guarantee if premises requires treatment from a licensed exterminator, in which case the Purchaser agrees to consummate this transaction pursuant to the terms hereof; or (b) terminate this contract by refunding the sums paid hereunder by the Purchaser; or (c) Purchaser, nevertheless, may accept the premises with the infestation and releasing Seller from curing same. (k) Extensions of time under this contract may be entered into between the attorneys for the respective parties and said extensions shall be binding upon the parties herein, in writing. (l) In the event any part of the underlined area or bold print in this contract is or shall be deemed to be in conflict with any other clause or paragraph elsewhere contained in this contract, the terms of the underlined areas or bold print shall prevail. (m) The submission by Seller of this Contract for execution by the Purchaser shall confer no rights, nor impose any obligations on the Seller, and shall not be enforceable unless and until the Seller has executed this Contract. (n) In the event that the check given by the Purchaser to Seller on the signing of this contract shall not be honored for any reason by the bank on which it is drawn, Seller, in addition to any other available remedy, may cancel and terminate this contract without further notice. The parties agree that the delivery of the deed conveying title to the Purchaser is deemed to be conditional upon the collection of any and all checks delivered to the Seller by the Purchaser and/or Purchaser’s lender and shall in no way relieve the Purchaser of the obligation to pay the balance of the monies due at closing, along with all costs incurred by Seller in collecting the proceeds, including reasonable attorney’s fees, in the event that any of Purchaser or Purchaser’s lender’s checks are dishonored. If said funds are dishonored, the Purchaser herein agrees that the Seller shall have the absolute right to file a Lis Pendens against the premises and Purchaser shall arrange to have good funds immediately delivered to the Seller or, if not so delivered, vacate the premises immediately. This paragraph shall survive delivery of the deed. (o) In the event a proceeding is pending to correct or reduce the assessed valuation of the Premises, such proceeding shall be continued by the attorneys presently retained for such purpose. Purchaser agrees to pay a share of the fees and disbursements in the event that a reduction is obtained which shall be in proportion to the share of the benefit to Purchaser from the date of closing to the date of determination of the proceeding. This provision shall survive delivery of the Deed. (p) The personal property to be conveyed pursuant to the Contract shall be deemed transferred to and conveyed to Purchaser. It is understood and agreed that no separate part of the purchase price shall be deemed to have been paid by Purchaser for same. (q) (i) Lead Paint: The Purchaser represents that he/she/they is/are aware of his/her/their rights regarding the possible presence of lead-based paint at the premises and the Purchaser herein waives the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards. 29. The parties acknowledge that they have been informed of their rights and obligations under the PROPERTY CONDITION DISCLOSURE LAW and elect to do the following (initial a or b): a) A Property Condition Disclosure Statement is annexed and made a part hereof. b) A Property Condition Disclosure Statement is not annexed. The parties waive the requirement of the law and in waive the requirement of the law and in lieu thereof, the Purchaser will receive a credit of $500.00 at the closing of title. This credit shall be deemed a full waiver in satisfaction of the conditions contained in the Property Condition Disclosure Act in accord with Article 14 of the New York State Real Property Law. 30. The acceptance of a deed by the purchasers shall be deemed to be a full performance and discharge of every agreement and obligation on the seller’s part to be performed pursuant to the provisions of this contract, except those, if any, which are herein specifically stated to survive delivery of the deed. 31. This Contract may be executed in counterparts, and all so executed shall constitute one Contract, binding on all the parties hereto, even though all parties are not signatories to the original or the same counterpart. Any counterpart of the Contract shall for all purposes be deemed a fully executed instrument. IN WITNESS WHEREOF, this contract has been duly executed by the parties hereto.
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Though getting the maximum amount of profit from the sale of your house in NYC sounds like the target, it isn't always the overall best practice.
Normally I don't get involved in politics but what has been happening with Trump is really started to get me angry.
My friend John recently wrote some brilliant comments on the WSJ article titled "High Trump Anxiety" ... tough to repeat it here given that there are over 600 comments on there and it's hard to find his. But essentially, given the situation, I'd also much rather choose the safe status quo choice of Hillary vs "taking a flier" with Trump. In no way am I going to risk massive downside tail risk with Trump. Moreover, 2% growth is not exactly bad. It can get A LOT worse, trust me. Who are these Trump Supporters? Super concerning. I recently saw this question on Quora and had to help out the poor souls who were trying to answer this question. Mostly, it was wrong information. Here was my answer to correct them. Happy to have helped humanity.
Ben / Catherine - the problem I’ve encountered with that approach is that it just turns away the agents who actually have buyers, but doesn’t deter at all the troll agents without clients. It seems like the only way to completely avoid broker solicitation is to not have to interact with outside agents period during your home sale. If you are doing a flat fee RLS listing then you can still minimize drastically the amount of broker solicitation by following the tips in this article What I can't seem to understand is why so many home owners in NYC are so docile and willing to sign the standard "exclusive right to sell" listing agreement with some schmuck agent at a "big, traditional" real estate brokerage. It makes absolutely zero sense to me. Here's why: This is too wierd. I've been looking for something new to sink my teeth in. This may have to do.
"the region is hoping to draw tourists looking for "warlord tourism." I'll tell you what, this castle does look SICK however. If ever there was a young scottish man looking for a new calling in life, it may be this. Will let you guys know if I end up pulling the trigger. Full article here: http://www.cntraveler.com/stories/2016-03-14/japan-looking-for-full-time-ninjas-to-boost-tourism?mbid=social_cp_facebook_wir Today we’re going to talk about where to list your home when you try to sell for sale by owner in NYC. It’s very important to realize that the buyer universe is extremely fragmented, there are literally hundreds of search web sites so you’re going to want to have maximum exposure. Friends will often ask me, why can’t I just put it on Zillow and be done with it? While Zillow is a popular web site, it is just one among hundreds of search web sites. If you’re going to sell your home, why would you only expose it to a certain small segment of buyers? The fact that the buyer universe is so fragmented is one of the main reasons why real estate brokers haven’t died out yet. Brokers make this problem worse by having broker-only databases such as the multiple listing service that regular consumers can’t even list their home on. While there are a few free listing services, which we’ll talk about later, you really need to list using a service that will get you on both public and private sites. What I mean is, you’ll need to be able to list on the multiple listing service in addition to dozens of public consumer search web sites. I’ve looked through many of these different services and, to be frank there aren’t that many in the city. The best one I’ve found is Hauseit.com both in terms of value and exposure. In terms of exposure, these guys will list you on your local MLS, OLR, Realtor.com, StreetEasy, Homes.com, PropertyShark, and dozens more. They forward all inquiries directly to you so you still have full control, yet you appear as a traditional listing. The pitch is you receive less broker harassment because it looks like you already have a listing agent. In terms of value these guys are the best by far. They charge ~$300 for three months to list your property everywhere that a traditional agent would. Moreover, they offer free managed open houses as many times you want. Best of all, their listing agent is not eligible for any commissions beyond the flat fee that you pay. It was difficult to find similar services that served the NYC market. There are a few classic discount brokers, and a few large national discount broker chains, however most of them either charged a lot more in fees or couldn’t list you on relevant local sites like StreetEasy or the relevant local MLS called OLR. Moreover, I found it easier to deal with Hauseit because they were a marketing company without conflicts of interest prevalent in broker relationships. Of course, if you’ve really wanted to do it yourself you could individually list on each of the relevant sites I mentioned before. StreetEasy charges $399 for 28 days on their site. Realtor.com is not available for individuals and neither is the multiple listing service or OLR. So if you are if you want to do it yourself completely, I’d start with listing on StreetEasy for 28 days and perhaps also the New York Times which also charges you I believe $200 for two weeks. I’d also list on Zillow, Trulia, propertyshark, homes.com, yahoo homes. You can do this and test it out and hope to get lucky, but just be aware that many statistics say that brokers represent 80% of the represented market. Good luck, remember to read the rest of my blog, and I’d love to hear your thoughts on your for sale by owner nyc experience!
This is an example of a home where it may be harder to sell by owner. When brokers tell you that you need them to plug into their international buyer network, this is the only relevant example of a home where you need that network. And how many brokers do you think actually have a rolodex of Saudhi Sheiks? It’s almost laughable. So if you’re a regular New Yorker like me lucky enough to own your own home, don’t get thrown off when brokers tell you that you won’t find buyers unless you tap into their network. It’s called the internet, hello!! People seem to discount the fact that the internet was invented decades ago and that brokers are still necessary to go through the paper phonebook and call buyers about properties. Really, it’s not that complicated :-)Today we’re going to talk about some of the common mistakes that investors make when they try to sell their home. One common mistakes is not staging your home properly. I’ve seen the homes of friends who try to sell by themselves where it is completely empty. I’ve also seen homes where it is a complete mess. It’s a serious problem when you are selling a $1,000,000 home. Believe it or not I have seen a home where the owner didn’t bother to clean up after his renter had vacated the property. There was garbage everywhere. So don’t overestimate your competition, you will be very surprised to see the kinds of people out there that are trying to do it themselves. Another very common problem are photos. When selling $1,000,000 plus homes some people won’t spend a few hundred dollars to have professional photographs taken. This does not make sense to me. Why would you not paid $200 or $300 for a set of sparkling photos taken by a professional that would make your home shine? It’s been widely said that one of the most important aspects of getting your home sold are the photos. Yet despite this widely known fact People still insist on taking horrible photos with their iPhone and posting it on the Internet. And this is not to knock on the iPhone or its abilities. An iPhone is actually quite a sufficient camera for most photos. However most people do not know what they’re doing. Most people will hurry into their property and take 5 to 10 random photos from the worst angles you can imagine. They won’t even bother to move furniture around or open the windows to get the best lighting. And they certainly won’t bother to make sure the photo is aligned correctly. How can you expect the buyer to purchase a million dollar home on distorted iPhone photos? What would they think when they look at the property versus another one with professional photos marketed professionally? Now I don’t mean to discourage you it’s certainly is possible with the right amount of planning and focus. All you need to do is hire a professional photographer, and there are hundreds of them in the city. You should also hire a draftsman or architect to make a professional floor plan of your home. An architect or draftsmen will make sure your buyers have a clear view of how your home is laid out. If you have a good floor plan and photos, some form buyers won’t even need to visit the property. I’ve heard of many stories of foreign buyers purchasing purely on the floor plan. But the sad thing is most for sale by owner Sellers haven’t even thought of getting new, professional floorplans made. Is it too much to ask to also hire an architect to make a floorplan so your buyers can see it? So now you see, the packages offered by listing agents are really not that difficult to replicate. It’s quite possible to do it yourself, you just need to know where to look.
Hello guys today we’re going to talk about the mindset you should have before you decide to sell by owner. As I’m sure you’ve heard before, Mindset is everything. As someone once famously said, the man who thinks he can And the man who thinks he can’t both are usually right. The reason I emphasize mindset is because you’ll need a lot of internal strength when you sell by owner in New York. You will have to deal with constant harassment from brokers and their junior assistants.
You would think that people would respect your privacy. That is certainly not the case and even a civilized city like New York. If you think I’m joking or underestimating the problem you’re certainly mistaken. I’ve read stories from fellow friends who have literally gotten 200 broker cold calls in the span of a week. If you are not prepared for something like this I would advise you to seek another solution. As one friend told me, it’s not hard to sell by owner in New York, It’s only hard because of the constant harassment from brokers. Another interesting problem is that you can’t be angry at the brokers either and you’ll have to have a lot of patience despite their constant calling. The reason you can’t be angry at them is they are very important. And the reason they are important is because they still represent 80% of the current buyer base. So I’ve had friends try to sell by owner post on their listing “no brokers please.” That unfortunately is a mistake. In fact that is one of the most common rookie mistakes of for sale by owner homeowners. Homeowners think that by saying that brokers will not harass them, but in reality only brokers with buyers will not speak to them. And in fact, the listing brokers or brokers with nothing better to do and lots of free time on their hands will continue to constantly harass you. So by saying no brokers please, you’ve actually offended the broker community and did nothing about the harassment issue. We will of course talk about this previous problem in future posts, but it is sufficient for this post to warn you that You must have persistence like Churchill had when he faced the Nazis In 1940. Another issue is the number of fake bids you’ll receive and fake inquiry you’ll receive from brokers. Brokers will literally Create a fake e-mail accounts to send you Fake Bids Just to frustrate you. Since brokers don’t have an actual way to prevent you from trying to sell by owner, all they can do in NYC, is to have their legions of junior brokers and agents annoy the hell out of you. I’m not going to tell you too much more but hopefully you have a good idea now of just how frustrating the process can be. Selling by owner in NYC is one of the worst experiences of someone who can go through. But it doesn’t have to be like that, keep reading and I will share all the secrets and tricks that we’ve learned throughout the past few years selling by owner successfully! |
Scott McFarlsOne man's experience in selling by owner in the world's greatest city Archives
September 2016
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