How the contract usually comes together
In New York City and much of downstate New York, the seller's attorney typically drafts the contract after an offer is accepted, and the buyer's attorney reviews it and negotiates changes. In parts of upstate New York, brokers often prepare a form contract that is made subject to approval by each side's attorney. Downstate buyers usually complete their inspection before signing, because the contract often does not include an inspection contingency. On signing, the buyer pays a down payment that is commonly held in escrow, often by the seller's attorney, until closing.
Clauses that do the most work
A mortgage contingency usually lets a buyer cancel and recover the down payment if financing is not approved, but only by following the clause's notice requirements and deadline, so the date matters. For a co-op apartment, the purchase is usually conditioned on approval by the co-op board, which reviews the buyer's finances and has broad discretion. Closing dates are often written as on or about a certain day, which in New York generally allows some flexibility; making time of the essence usually requires a clear notice and a reasonable period. Representations about the property, what fixtures are included, and who bears the risk of damage before closing are also worth reading closely.
Reviewing before you sign
Bring the listing, the accepted offer, the inspection report, your financing pre-approval, and, for a condo or co-op, the building's financial statements and house rules if you have them. We go through the draft with you, explain what each contingency protects and when it expires, and propose changes that fit what the inspection or the building documents revealed. For sellers, an initial meeting covers what the property disclosure obligations are, what representations you are comfortable making, and how to handle a buyer who wants to delay.
