Preview
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
7/3/2018 PlatinumDrive Realty's
Homebuyers Handbook | TheWestchesterLivingTeam @ COMPASS
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
I GrewUp Here. I Live Here.
I Sell HomesHere. LINK TO YO UR F R E E L I F EST Y L E 6
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
7/3/2018 PlatinumDrive Realty's
Homebuyers Handbook | The Westchester
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NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
Hi, I'm Jennifer Y. Ross, a licensed real estate salesperson and
your Westchester County NY real estate community and home
Schedule A
expert. I grew up here. I live
here. I work here. To learn more
. . . . Luxury Community
about how I clients check out biovideo - videolink
help my my
& Home Tour With
(https://youtu.be/zYG86qHAtpk). .
Jennifer Y. Ross
Just like you I was considering a move to Westchester County
not too ago. I was in your shoes - in
long very likely living
NYC and starting to outgrow my current living situation. (https://westchesterliving.h
home-tours/)
Ifyou are ready to start exploring Westchester Communities
(/home-value-analysis/)
and Homes, your firststop should be a Platinum Drive Realty
Tour - linkto learn more
Luxury HOWMUCHISYOUR
(https://westchesterliving.house/1uxury-home-tours/). HOMEWORTH?
FREE HOME VALUE
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Contact me to schedule your suburban safaritoday! linkto
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tours/) CL
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Areas of Expertise:
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FREE Download:
Larchmont Real Estate view NomeBuyers
(https://westchesterliving.house/larchmont-ny-community- Guid©OWNLOAD
(/GUIDE-TO-
real-estate-guide/), Mamaroneck Real Estate
BUYING-A-
(https://westchesterliving.house/larchmont-ny-community-
HOME/#LOCK) n
real-estate-guide/), Scarsdale Real Estate El
(https://westchesterliving.house/scarsdale-ny-community-real-
estate-guide/), Rye Real Estate
(https://westchesterliving.house/rye-ny-community-real-
estate-guide/), Rye Neck Real Estate Have Questions?
(https://westchesterliving.house/rye-neck-ny-community-real-
Let's Talk!
estate-guide/), Purchase Real Estate, Harrison Real Estate
(https://westchesterliving.house/harrison-ny-community-real-
New Rochelle Real Estate SCHEDULE A CALL
estate-guide/),
(https://westchesterliving.house/new-rochelle-ny-community-
real-estate-guide/), Pelham Real Estate and Bronxville Real
Estate (https://westchesterliving.house/pelham-ny-
community-real-estate-guide/), Rye Brook Real Estate
(https://westchesterliving.house/rye-brook-ny-community-
and-real-estate-guide/)
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
7/3/2018 PlatinumDrive Realty's
Homebuyers Handbook | The Westchester
LivingTeam @ COMPASS
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
Follow the Links below to begin_your online home search:
Larchmont Homes For Sale
(https://westchesterliving.house/larchmont-ny-community-
real-estate-guide/)- —Mamaroneck Home For Sale
real-estate-guide/)
(https://westchesterliving.house/larchmont-ny-community-
- Scarsdale Homes For Sale
real-estate-guide/)
(https://westchesterliving.house/scarsdale-ny-community-real-
- Rye Homes For Sale
estate-guide/)
(https://westchesterliving.house/rye-ny-community-real-
- Rye Neck Homes For Sale
estate-guide/)
(https://westchesterliving.house/rye-neck-ny-community-real-
- Purchase Homes For Sale - Harrison Homes
estate-guide/)
For Sale (https://westchesterliving.house/harrison-ny-
community-real-estate-guide/)- New Rochelle Homes For Sale
(https://westchesterliving.house/new-rochelle-ny-community-
- Pelham Homes For Sale - Bronxville
real-estate-guide/)
Homes For Sale (https://westchesterliving.house/pelham-ny-
community-real-estate-guide/), Rye Brook Homes For Sale
(https://westchesterliving.house/rye-brook-ny-community-
and-real-estate-guide/)
Buyers Guide: Guide to the Home
Purchasing Process
OUR GOAL IS TO HELP FIND YOUR DREAM HOME
That Means:
• With the most favorable terms
• In the optimal period of time
• With the least inconvenience
• And for the most the market will bear
money
Welcome to Platinum Drive Realty's Homebuy_er's
Handbook
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7/3/2018 PlatinumDrive Realty's
Homebuyers Handbook | The Westchester
LivingTeam @ COMPASS
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
The New York metropolitan area and itsmany suburbs are
great places to live.As Realtors and residents, we take pride in
our communities and welcome the opportunity to introduce
prospective homebuyers to the wonderful neighborhoods,
we'
schools and services that we've grown to know and appreciate.
The home buying process can be quite complex, and
especially daunting forthe novice purchaser or those
unfamiliar with practices customary to this area. We hope this
handbook will serve to guide you through the intricacies of
purchasing a home, and answer many of your questions on the
processes, practices and procedures you will encounter. Along
with this general information, we do strongly encourage you
to consult with professionals throughout the home buying
process, including attorneys, home inspectors, mortgage
professionals, and other service providers who can give you
crucial guidance in their areas of expertise.
Fair Housing:
Platinum Drive Realty is pledged to the letter and spiritof
~~
national, state and local laws and policies for the achievement
of equal housing opportunity. We encourage and support an
affirmative advertising and marketing program in which there
are no barriers to obtaining housing because of race, color
religion, sex, handicap, familial status or national origin.
*
A Buyer's Guide to the home Purchasing Process Disclaimer:
Please keep in mind that this isnot intended to be a
comprehensive discussion of the home purchase process. Itis
intended to give the reader a general overview of the process,
and to allow a prospective purchaser to plan ahead.
Information contained herein should not take the place of the
expert advice of professional advisors such as an attorney, a
real estate agent, an engineer, a mortgage counselor, an
accountant, and an insurance agent, allof whom you may
have to consult with and rely upon in connection with your
home purchase.
The Initial Home Search Process
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7/3/2018 PlatinumDrive Realty's
Homebuyers Handbook | The Westchester
LivingTeam @ COMPASS
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
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content/uploads/2015/11/ftr_415_image.jpg)
Your agent(s) will show you
suitable properties based
on a discussion of your
I ~ priorities
housing needs,
and affordability. Your
. .. agent(s) may work with you
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as a Buyer's Agent or as a
Sub-agent of the Seller; be sure to discuss these agency
relationships with your agent(s) at your first substantive
meeting as you will be required by law to sign an Agency
Disclosure Agreement at that time. Iffinancing will be
required, itis recommended that you obtain mortgage
preapproval from a qualified lender prior to beginning your
home search. A preapproval letterwill give your offer merit in
the eyes of a seller, and may allow you to be more flexible ifa
parties'
quick closing isin both best interest. You should also
select an attorney at thistime. Itis recommended that you
choose an attorney who is experienced in representing
purchasers of real estate. Ifyou don't have an attorney already
for this purpose, your agent(s) can usually give you names of
several highly regarded real estate attorneys that you can
8
interview. n
The Offer Process
Once you have found a home you wish to purchase, your agent
will submit an offer on your behalf. Offers and counter-offers
may be submitted verbally or in writing. The initialoffer is
usually submitted in writing (especially in a multiple-offer
Purchase"
situation) as an "Offer to prepared by your agent;
subsequent counter- offers are often presented verbally. When
you have reached an agreement with the seller on terms
including purchase price, personal property to be included,
projected closing date, conditions and contingencies
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Homebuyers Handbook | The Westchester
LivingTeam @ COMPASS
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
(inspections, financing, etc.), you now have an Acceptable
Offer (A.O.). Once an A.O. is reached, a written Memorandum
of Agreement isusually drafted by the seller's agent, stating
the terms of the agreement; copies are distributed to the
seller, the seller's attorney, the buyer, the buyer's attorney, and
both real estate agents. No earnest money deposit is
exchanged at this time. The typical time frame from
agreement to closing is approximately 60-90 days. Of course,
many factors can affect this time frame, including specific
needs of the buyer and/or seller.
From Agreement to Contract
After reaching an A.O., you (the buyer) are given a limited time
period during which to conduct an engineer's inspection and
other desired and/or required inspections (assuming that an
inspection contingency is part of the agreed-upon offer).This
period isusually 10 days or less. During this period, the seller
has only a verbal, non-binding agreement to sell the property
to the buyer; the seller,in the meantime, is free to listen to
negotiate, and/or accept other offers. Itis, therefore
imperative that you (the buyer) conduct allinspections in good
faith and in a timely fashion. A binding contract will generally
not be written until after inspections have been completed.
Inspections
An engineer's inspection isvery strongly recommended for
every home purchase. The purpose of an inspection isto
identify the condition of the home and allow the buyer to
make informed decisions. Even with newly constructed homes
and with condominiums, itis possible that something could
have been overlooked or poorly designed. An engineer's
inspection will typically take 2-4 hours. Ifat all possible, you
should plan to be there with the engineer during the
inspection. This is an opportunity for you to learn a lotabout
your new home, ask questions of the engineer, and receive
suggestions. Subsequent to the inspection, the engineer will
provide you with a detailed written report covering his/her
findings. Most mortgage lenders require a termite inspection
and stipulate that it'sto be done by a licensed termite
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Homebuyers Handbook | The Westchester
LivingTeam @ COMPASS
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
inspector. Your engineer may or may not be licensed to do
termite inspections; ifnot, you will need to hire a termite
inspector. Other optional inspections you may wish to perform
include a fuel oiltank test (for oiltanks buried in the ground),
a radon test,a septic dye test(ifapplicable), a water potability
test and water recovery test (for private wells), asbestos
testing, and mold and lead paint tests.
From Contract to Closing
Once inspections are completed and deemed satisfactory, the
seller's attorney will draft a contract of sale and deliver it,
along with the seller'stitleinsurance policy and copy of any
existing survey, to your (the purchaser's) attorney. You should
review and discuss the contract with your attorney. Ifany
changes are requested, the seller must agree to these changes.
Signed contracts are then returned to the seller'sattorney with
payment"
a 10% contract deposit, also called a "down (this
down payment amount can be negotiable but is 10%). <
typically
seller'
The contract deposit check is made payable to the seller's
attorney who holds itin an escrow account until the closing.
Once the contract is signed by the seller, your attorney will
receive two fully executed copies of the contract, one of which
will be given to you for submission with your mortgage loan
application. Your completed mortgage loan application with
allsupporting documentation should be submitted to your
chosen lender promptly upon receipt of the fully signed
contracts. Your attorney will also provide you with an estimate
of closing costs at thistime. Prior to closing, your attorney will
arrange for a titlesearch of the property. The titlecompany
will issue a titlereport certifying clear title,and a title
insurance policy to protect the lender (required) and the buyer
(optional) in the event a titleproblem arises in the future. The
title company will also perform a property tax search and a
violations search (required by the lender), and a survey
inspection. Ifthe existing survey isunacceptable, or ifno
survey exists,itis typically the buyer's responsibility to pay for
a new survey.
Closing
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Homebuyers Handbook | The Westchester
LivingTeam @ COMPASS
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
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Once allconditions of the contract have been satisfied, the
closing date is scheduled.
This involves getting
a . together allparties
%I.,=-
j, the the
including seller,
~sag seller's the
attorney, buyer,
the buyer's attorney, the
lender's attorney, the title
company representative, and usually one or both real estate
agents. Once the closing is scheduled, calls should be made to
confirm with your movers, to contact utilitycompanies to
transfer service accounts, to arrange for a homeowners
insurance policy (proof of an insurance policy and paid
receipt for one year's premium paid in advance must be
brought to the closing), and to transfer any funds necessary for
closing. Your attorney will advise you in advance as to the
amount(s) of any certified checks required at closing. You will
also be required to bring a supply of blank personal checks for
assorted closing costs, as well as two forms ofidentification,
"walk-through"
one of which must be a photo I.D. A final of
the property is performed just prior to closing, usually within
a few hours or not sooner than the previous day. This is n
scheduled with your real estate agent, or the seller's agent. The
purpose of the walk-through isthreefold: to confirm that no
damage has been done to the home since the time of the
engineering inspection; to confirm that the major systems and
appliances are in working order; and to confirm that the home
is "vacant and broom clean", as stipulated in every sales
contract.
QuestionS
For additional information or clarification of any information
provided herein, please consult one of the professionals
identified in the disclaimer.
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7/3/2018 PlatinumDrive Realty's
Homebuyers Handbook | The Westchester
LivingTeam @ COMPASS
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
Standard Forms Encountered During a Real Estate
Transaction in New York State
New York State Disclosure Regarding Real Estate Agency
Relationships This form is required by NY State to be executed
by all parties to a real estate transaction, including buyers,
sellers, tenants and landlords. The document describes the
various types of agency relationships. Your agent should
discuss these relationships with you in detail at your first
substantive meeting so that you can agree on the type of
agency representation you will receive. Ifyour agent will
represent you as a buyer's agent, then the circumstance of
agency"
"dual should be discussed at thistime.
Dual and Designated Agency Agreements
Ifyou are represented by a buyer's agent, you will have
agency"
discussed "dual during your initialagency discussion.
agency"
Should a situation of "dual arise, in alllikelihood, this
agency"
will lend itselfto resolution with a "designated
agreement. At the time a dual agency arises, both parties to
the transaction will be required to acknowledge the dual
agency in writing, and also to acknowledge a designated
agency agreement at the same time, designating different
agents within the same brokerage to represent each of the
parties.
Disclosure of Information on Lead-Based Paint
and/or Lead-Based Paint Hazards
All purchasers or lessees of housing built before 1978 must be
presented with the pamphlet "Protect Your Family from Lead
in Your Home". In addition, they must be provided with a
disclosure form from the seller or lessor stating any
knowledge of the existence of lead-based paint in the home.
Should a buyer or lessee wish to conduct inspections for lead-
based paint hazards in the home, they will be allowed a 10-day
period in which to conduct those inspections, unless
otherwise agreed to or waived.
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LivingTeam @ COMPASS
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
Property Condition Disclosure Statement
As ofMarch 1, 2002, New York State implemented a Property
Condition Disclosure Act. This law requires that a completed
property condition disclosure statement be provided to the
buyer before the buyer isbound by a contract of sale,and this
statement must then be attached to the contract. Failure to
provide the completed statement as prescribed by the law will
result in a $500 credit to the buyer at closing. This law applies
to residential property with one to four units, but not to
unimproved real property, new construction, condos,
cooperative apartments, or property in a homeowner's
association that is not owned in fee simple. Other exclusions
exist in various situations of foreclosures, estates, transfer
between co- and more (consult legal counsel for the
owners,
details of these various exclusions).
Offer to Purchase
A written Offer to Purchase is commonly used to submit an
initial offer on a property. This document is not a standardized
form, but should contain the terms of the offer, including
offering price, conditions (financing, inspections), inclusions
of the sale, proposed closing date, and any other negotiable
issues. Itshould be prepared by the agent working with the
buyer, and should be carefully reviewed by the buyer for
accuracy prior to submission; the agent may or may not
request that the buyer sign the offer.
Contract of Sale
seller'
The legal contract of sale istypically prepared by the seller's
attorney after an agreement has been negotiated, and after
completion of any agreed upon inspections. The contract will
be sent from the seller's attorney to the buyer's attorney for
review and signing by the buyer(s), then returned to the
seller's attorney along with the down payment (typically 10%
of the purchase price) for signature from the seller(s).While
many attorneys use a standard basic contract, the exact
language and terms of each contract will vary considerably
and should be reviewed thoroughly before signing.
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NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
Other Issues and Considerations
Carbon Monoxide Detectors
New York State law requires that allone- and two-family
homes, condominiums and cooperative apartments have at
least one operable carbon monoxide alarm at the time of sale.
This law went into effect on March 6, 2003. During your initial
home inspection, and/or at the finalwalk-through prior to
closing, make sure that there is atleast one alarm installed
and that itis in working condition.
Homeowner's Insurance Itwill be necessary to have a
homeowner's insurance policy in place, pre-paid for one year,
at the time of closing. The insurance industry now relies
heavily on C.L.U.E. (Comprehensive Loss Underwriting
Exchange) Loss a database <
Property History reports, relating
to insurance claims on private property. A property's claim
history for the past seven years, including inquiries that did
not result in claims, is contained in the report. In addition to
considering the property's claim history, insurance companies
will also consider the claim history of the purchaser when
deciding whether to issue an insurance policy. A property or
purchaser with an extensive or checkered claim history may
find itdifficult,expensive, or impossible to obtain
homeowner's insurance. Only the current property owner may
order a C.L.U.E. report; you can ask them to obtain one and
share itwith you, or ask them to give you written details of
their past claims on the property. These days, itis important to
investigate the cost and availability of homeowner's insurance
early in the process, rather than waiting until just prior to
closing.
Understanding Agency
It'simportant to understand what legal responsibilities your
real estate salesperson has to you and to other parties in the
transaction. Ask your salesperson to explain what type of
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LivingTeam @ COMPASS
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
agency relationship you have with him or her and with the
brokerage company.
1. Seller's representative (also known as a listing
agent or seller's agent)
A seller's agent ishired by and represents the seller. All
fiduciary duties are owed to the seller. The agency relationship
usually is created by a listing contract.
2. Subagent
A subagent owes the same fiduciary duties to the agent's
principal as the agent does. Subagency usually arises when a
cooperating sales associate from another brokerage, who is
not representing the buyer as a buyer's representative or
operating in a nonagency relationship, shows property to a
buyer. In such a case, the subagent works with the buyer as a
customer but owes duties to the broker and <
fiduciary listing
the seller.Although a subagent cannot assist the buyer in any
way that would be detrimental to the seller, a buyer-customer
can expect to be treated honestly by the subagent. Itis
important that subagents fully explain their duties to buyers.
buyer'
3. Buyer's representative (also known as a buyer's
agent)
A real estate licensee who ishired by prospective buyers to
represent them in a real estate transaction. The buyer's rep
works in the buyer's best interest throughout the transaction
and owes fiduciary duties to the buyer. The buyer can pay the
licensee directly through a negotiated fee,or the buyer's rep
may be paid by the seller or by a commission split with the
listing broker.
4. Disclosed dual agent
Dual agency is a relationship in which the brokerage firm
represents both the buyer and the seller in the same real estate
transaction. Dual agency relationships do not carry with them
allof the traditional fiduciary duties to the clients. Instead,
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LivingTeam @ COMPASS
NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018
dual agents owe limited fiduciary duties. Because of the
potential for conflicts of interest in a dual-agency relationship,
it'svital that allparties give their informed consent. In many
states (including NY), this consent must be in writing.
Disclosed dual agency, in which both the buyer and the seller
are told that the agent is representing both of them, islegal in
most states.
5. Designated agent (also called, among other things,
appointed agency)
This is a brokerage practice that allows the managing broker
to designate which licensees in the brokerage will act as an
agent of the seller and which will act as an agent of the buyer.
Designated agency avoids the problem of creating a
dualagency relationship for licensees at the brokerage. The
designated agents give their clients full representation, with
allof the attendant fiduciary duties. The broker stillhas the
responsibility of supervising both groups of licensees.
6. Nonagency relationship (called, among other
things, a transaction broker or facilitator)
Some states permit a real estate licensee to have a type o
Preview
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | TheWestchesterLivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 I GrewUp Here. I Live Here. I Sell HomesHere. LINK TO YO UR F R E E L I F EST Y L E 6 C0 M M U N ITY ST R A T EG Y CA LL (https://fromnyctowestchesterliving.splashthat.com/) (https://westchesterliving.house) CG IV f Platinum Drive Realty's Homebuyers Handbook G+ in Jennifer Y. Ross Published on January 12, 2017 r> n C o C o I Want to... 4 Search For Properties (/featured-neighborhoods) W Learn More About Buying Q A (/guide-to-buying-a-home) ta $ Find The ValueOf My Home (/home-value-analysis) L Schedule A Call (/schedule) Q Read Tips and Tricks (/real-estate-blog) * View Featured Communities (/featured-neighborhoods) Platinum Drive Realty's See Client Success Stories utes o Homebuyers Handbook s) Talk About My Home Selling f v 9 5 https://westchesterliving.house/real-estate-blog/platinum-drive-realtys-homebuyers-handbook/ 1/23 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | The Westchester LivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 Hi, I'm Jennifer Y. Ross, a licensed real estate salesperson and your Westchester County NY real estate community and home Schedule A expert. I grew up here. I live here. I work here. To learn more . . . . Luxury Community about how I clients check out biovideo - videolink help my my & Home Tour With (https://youtu.be/zYG86qHAtpk). . Jennifer Y. Ross Just like you I was considering a move to Westchester County not too ago. I was in your shoes - in long very likely living NYC and starting to outgrow my current living situation. (https://westchesterliving.h home-tours/) Ifyou are ready to start exploring Westchester Communities (/home-value-analysis/) and Homes, your firststop should be a Platinum Drive Realty Tour - linkto learn more Luxury HOWMUCHISYOUR (https://westchesterliving.house/1uxury-home-tours/). HOMEWORTH? FREE HOME VALUE - (/HOME-VALUE- Contact me to schedule your suburban safaritoday! linkto schedule tour. (https://westchesterliving.house/luxury-home- ANALYSIS/) tours/) CL C o C Areas of Expertise: (/guide-to-buying-a-home/#lock) FREE Download: Larchmont Real Estate view NomeBuyers (https://westchesterliving.house/larchmont-ny-community- Guid©OWNLOAD (/GUIDE-TO- real-estate-guide/), Mamaroneck Real Estate BUYING-A- (https://westchesterliving.house/larchmont-ny-community- HOME/#LOCK) n real-estate-guide/), Scarsdale Real Estate El (https://westchesterliving.house/scarsdale-ny-community-real- estate-guide/), Rye Real Estate (https://westchesterliving.house/rye-ny-community-real- estate-guide/), Rye Neck Real Estate Have Questions? 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NO. 85 RECEIVED NYSCEF: 07/14/2018 Follow the Links below to begin_your online home search: Larchmont Homes For Sale (https://westchesterliving.house/larchmont-ny-community- real-estate-guide/)- —Mamaroneck Home For Sale real-estate-guide/) (https://westchesterliving.house/larchmont-ny-community- - Scarsdale Homes For Sale real-estate-guide/) (https://westchesterliving.house/scarsdale-ny-community-real- - Rye Homes For Sale estate-guide/) (https://westchesterliving.house/rye-ny-community-real- - Rye Neck Homes For Sale estate-guide/) (https://westchesterliving.house/rye-neck-ny-community-real- - Purchase Homes For Sale - Harrison Homes estate-guide/) For Sale (https://westchesterliving.house/harrison-ny- community-real-estate-guide/)- New Rochelle Homes For Sale (https://westchesterliving.house/new-rochelle-ny-community- - Pelham Homes For Sale - Bronxville real-estate-guide/) Homes For Sale (https://westchesterliving.house/pelham-ny- community-real-estate-guide/), Rye Brook Homes For Sale (https://westchesterliving.house/rye-brook-ny-community- and-real-estate-guide/) Buyers Guide: Guide to the Home Purchasing Process OUR GOAL IS TO HELP FIND YOUR DREAM HOME That Means: • With the most favorable terms • In the optimal period of time • With the least inconvenience • And for the most the market will bear money Welcome to Platinum Drive Realty's Homebuy_er's Handbook https://westchesterliving.house/real-estate-blog/platinum-drive-realtys-homebuyers-handbook/ 3/23 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | The Westchester LivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 The New York metropolitan area and itsmany suburbs are great places to live.As Realtors and residents, we take pride in our communities and welcome the opportunity to introduce prospective homebuyers to the wonderful neighborhoods, we' schools and services that we've grown to know and appreciate. The home buying process can be quite complex, and especially daunting forthe novice purchaser or those unfamiliar with practices customary to this area. We hope this handbook will serve to guide you through the intricacies of purchasing a home, and answer many of your questions on the processes, practices and procedures you will encounter. Along with this general information, we do strongly encourage you to consult with professionals throughout the home buying process, including attorneys, home inspectors, mortgage professionals, and other service providers who can give you crucial guidance in their areas of expertise. Fair Housing: Platinum Drive Realty is pledged to the letter and spiritof ~~ national, state and local laws and policies for the achievement of equal housing opportunity. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color religion, sex, handicap, familial status or national origin. * A Buyer's Guide to the home Purchasing Process Disclaimer: Please keep in mind that this isnot intended to be a comprehensive discussion of the home purchase process. Itis intended to give the reader a general overview of the process, and to allow a prospective purchaser to plan ahead. Information contained herein should not take the place of the expert advice of professional advisors such as an attorney, a real estate agent, an engineer, a mortgage counselor, an accountant, and an insurance agent, allof whom you may have to consult with and rely upon in connection with your home purchase. The Initial Home Search Process https://westchesterliving.house/real-estate-blog/platinum-drive-realtys-homebuyers-handbook/ 4/23 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | The Westchester LivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 (https://westchesterliving.house/wp- content/uploads/2015/11/ftr_415_image.jpg) Your agent(s) will show you suitable properties based on a discussion of your I ~ priorities housing needs, and affordability. Your . .. agent(s) may work with you r~ V,.iiI I I;~ I~j as a Buyer's Agent or as a Sub-agent of the Seller; be sure to discuss these agency relationships with your agent(s) at your first substantive meeting as you will be required by law to sign an Agency Disclosure Agreement at that time. Iffinancing will be required, itis recommended that you obtain mortgage preapproval from a qualified lender prior to beginning your home search. A preapproval letterwill give your offer merit in the eyes of a seller, and may allow you to be more flexible ifa parties' quick closing isin both best interest. You should also select an attorney at thistime. Itis recommended that you choose an attorney who is experienced in representing purchasers of real estate. Ifyou don't have an attorney already for this purpose, your agent(s) can usually give you names of several highly regarded real estate attorneys that you can 8 interview. n The Offer Process Once you have found a home you wish to purchase, your agent will submit an offer on your behalf. Offers and counter-offers may be submitted verbally or in writing. The initialoffer is usually submitted in writing (especially in a multiple-offer Purchase" situation) as an "Offer to prepared by your agent; subsequent counter- offers are often presented verbally. When you have reached an agreement with the seller on terms including purchase price, personal property to be included, projected closing date, conditions and contingencies https://westchesterliving.house/real-estate-blog/platinum-drive-realtys-homebuyers-handbook/ 5/23 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | The Westchester LivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 (inspections, financing, etc.), you now have an Acceptable Offer (A.O.). Once an A.O. is reached, a written Memorandum of Agreement isusually drafted by the seller's agent, stating the terms of the agreement; copies are distributed to the seller, the seller's attorney, the buyer, the buyer's attorney, and both real estate agents. No earnest money deposit is exchanged at this time. The typical time frame from agreement to closing is approximately 60-90 days. Of course, many factors can affect this time frame, including specific needs of the buyer and/or seller. From Agreement to Contract After reaching an A.O., you (the buyer) are given a limited time period during which to conduct an engineer's inspection and other desired and/or required inspections (assuming that an inspection contingency is part of the agreed-upon offer).This period isusually 10 days or less. During this period, the seller has only a verbal, non-binding agreement to sell the property to the buyer; the seller,in the meantime, is free to listen to negotiate, and/or accept other offers. Itis, therefore imperative that you (the buyer) conduct allinspections in good faith and in a timely fashion. A binding contract will generally not be written until after inspections have been completed. Inspections An engineer's inspection isvery strongly recommended for every home purchase. The purpose of an inspection isto identify the condition of the home and allow the buyer to make informed decisions. Even with newly constructed homes and with condominiums, itis possible that something could have been overlooked or poorly designed. An engineer's inspection will typically take 2-4 hours. Ifat all possible, you should plan to be there with the engineer during the inspection. This is an opportunity for you to learn a lotabout your new home, ask questions of the engineer, and receive suggestions. Subsequent to the inspection, the engineer will provide you with a detailed written report covering his/her findings. Most mortgage lenders require a termite inspection and stipulate that it'sto be done by a licensed termite https://westchesterliving.house/real-estate-blog/platinum-drive-realtys-homebuyers-handbook/ 6/23 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | The Westchester LivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 inspector. Your engineer may or may not be licensed to do termite inspections; ifnot, you will need to hire a termite inspector. Other optional inspections you may wish to perform include a fuel oiltank test (for oiltanks buried in the ground), a radon test,a septic dye test(ifapplicable), a water potability test and water recovery test (for private wells), asbestos testing, and mold and lead paint tests. From Contract to Closing Once inspections are completed and deemed satisfactory, the seller's attorney will draft a contract of sale and deliver it, along with the seller'stitleinsurance policy and copy of any existing survey, to your (the purchaser's) attorney. You should review and discuss the contract with your attorney. Ifany changes are requested, the seller must agree to these changes. Signed contracts are then returned to the seller'sattorney with payment" a 10% contract deposit, also called a "down (this down payment amount can be negotiable but is 10%). < typically seller' The contract deposit check is made payable to the seller's attorney who holds itin an escrow account until the closing. Once the contract is signed by the seller, your attorney will receive two fully executed copies of the contract, one of which will be given to you for submission with your mortgage loan application. Your completed mortgage loan application with allsupporting documentation should be submitted to your chosen lender promptly upon receipt of the fully signed contracts. Your attorney will also provide you with an estimate of closing costs at thistime. Prior to closing, your attorney will arrange for a titlesearch of the property. The titlecompany will issue a titlereport certifying clear title,and a title insurance policy to protect the lender (required) and the buyer (optional) in the event a titleproblem arises in the future. The title company will also perform a property tax search and a violations search (required by the lender), and a survey inspection. Ifthe existing survey isunacceptable, or ifno survey exists,itis typically the buyer's responsibility to pay for a new survey. Closing https://westchesterliving.house/real-estate-blog/platinum-drive-realtys-homebuyers-handbook/ 7/23 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | The Westchester LivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 (https://westchesterliving.house/wp- content/uploads/2016/09/ftr_1061_image.jpg) Once allconditions of the contract have been satisfied, the closing date is scheduled. This involves getting a . together allparties %I.,=- j, the the including seller, ~sag seller's the attorney, buyer, the buyer's attorney, the lender's attorney, the title company representative, and usually one or both real estate agents. Once the closing is scheduled, calls should be made to confirm with your movers, to contact utilitycompanies to transfer service accounts, to arrange for a homeowners insurance policy (proof of an insurance policy and paid receipt for one year's premium paid in advance must be brought to the closing), and to transfer any funds necessary for closing. Your attorney will advise you in advance as to the amount(s) of any certified checks required at closing. You will also be required to bring a supply of blank personal checks for assorted closing costs, as well as two forms ofidentification, "walk-through" one of which must be a photo I.D. A final of the property is performed just prior to closing, usually within a few hours or not sooner than the previous day. This is n scheduled with your real estate agent, or the seller's agent. The purpose of the walk-through isthreefold: to confirm that no damage has been done to the home since the time of the engineering inspection; to confirm that the major systems and appliances are in working order; and to confirm that the home is "vacant and broom clean", as stipulated in every sales contract. QuestionS For additional information or clarification of any information provided herein, please consult one of the professionals identified in the disclaimer. https://westchesterliving.house/real-estate-blog/platinum-drive-realtys-homebuyers-handbook/ 8/23 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | The Westchester LivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 Standard Forms Encountered During a Real Estate Transaction in New York State New York State Disclosure Regarding Real Estate Agency Relationships This form is required by NY State to be executed by all parties to a real estate transaction, including buyers, sellers, tenants and landlords. The document describes the various types of agency relationships. Your agent should discuss these relationships with you in detail at your first substantive meeting so that you can agree on the type of agency representation you will receive. Ifyour agent will represent you as a buyer's agent, then the circumstance of agency" "dual should be discussed at thistime. Dual and Designated Agency Agreements Ifyou are represented by a buyer's agent, you will have agency" discussed "dual during your initialagency discussion. agency" Should a situation of "dual arise, in alllikelihood, this agency" will lend itselfto resolution with a "designated agreement. At the time a dual agency arises, both parties to the transaction will be required to acknowledge the dual agency in writing, and also to acknowledge a designated agency agreement at the same time, designating different agents within the same brokerage to represent each of the parties. Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards All purchasers or lessees of housing built before 1978 must be presented with the pamphlet "Protect Your Family from Lead in Your Home". In addition, they must be provided with a disclosure form from the seller or lessor stating any knowledge of the existence of lead-based paint in the home. Should a buyer or lessee wish to conduct inspections for lead- based paint hazards in the home, they will be allowed a 10-day period in which to conduct those inspections, unless otherwise agreed to or waived. https://westchesterliving.house/real-estate-blog/platinum-drive-realtys-homebuyers-handbook/ 9/23 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | The Westchester LivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 Property Condition Disclosure Statement As ofMarch 1, 2002, New York State implemented a Property Condition Disclosure Act. This law requires that a completed property condition disclosure statement be provided to the buyer before the buyer isbound by a contract of sale,and this statement must then be attached to the contract. Failure to provide the completed statement as prescribed by the law will result in a $500 credit to the buyer at closing. This law applies to residential property with one to four units, but not to unimproved real property, new construction, condos, cooperative apartments, or property in a homeowner's association that is not owned in fee simple. Other exclusions exist in various situations of foreclosures, estates, transfer between co- and more (consult legal counsel for the owners, details of these various exclusions). Offer to Purchase A written Offer to Purchase is commonly used to submit an initial offer on a property. This document is not a standardized form, but should contain the terms of the offer, including offering price, conditions (financing, inspections), inclusions of the sale, proposed closing date, and any other negotiable issues. Itshould be prepared by the agent working with the buyer, and should be carefully reviewed by the buyer for accuracy prior to submission; the agent may or may not request that the buyer sign the offer. Contract of Sale seller' The legal contract of sale istypically prepared by the seller's attorney after an agreement has been negotiated, and after completion of any agreed upon inspections. The contract will be sent from the seller's attorney to the buyer's attorney for review and signing by the buyer(s), then returned to the seller's attorney along with the down payment (typically 10% of the purchase price) for signature from the seller(s).While many attorneys use a standard basic contract, the exact language and terms of each contract will vary considerably and should be reviewed thoroughly before signing. https://westchesterliving.house/real-estate-blog/platinum-drive-realtys-homebuyers-handbook/ 10/23 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | The Westchester LivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 Other Issues and Considerations Carbon Monoxide Detectors New York State law requires that allone- and two-family homes, condominiums and cooperative apartments have at least one operable carbon monoxide alarm at the time of sale. This law went into effect on March 6, 2003. During your initial home inspection, and/or at the finalwalk-through prior to closing, make sure that there is atleast one alarm installed and that itis in working condition. Homeowner's Insurance Itwill be necessary to have a homeowner's insurance policy in place, pre-paid for one year, at the time of closing. The insurance industry now relies heavily on C.L.U.E. (Comprehensive Loss Underwriting Exchange) Loss a database < Property History reports, relating to insurance claims on private property. A property's claim history for the past seven years, including inquiries that did not result in claims, is contained in the report. In addition to considering the property's claim history, insurance companies will also consider the claim history of the purchaser when deciding whether to issue an insurance policy. A property or purchaser with an extensive or checkered claim history may find itdifficult,expensive, or impossible to obtain homeowner's insurance. Only the current property owner may order a C.L.U.E. report; you can ask them to obtain one and share itwith you, or ask them to give you written details of their past claims on the property. These days, itis important to investigate the cost and availability of homeowner's insurance early in the process, rather than waiting until just prior to closing. Understanding Agency It'simportant to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transaction. Ask your salesperson to explain what type of https://westchesterliving.house/real-estate-blog/platinum-drive-realtys-homebuyers-handbook/ 11/23 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | The Westchester LivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 agency relationship you have with him or her and with the brokerage company. 1. Seller's representative (also known as a listing agent or seller's agent) A seller's agent ishired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract. 2. Subagent A subagent owes the same fiduciary duties to the agent's principal as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not representing the buyer as a buyer's representative or operating in a nonagency relationship, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes duties to the broker and < fiduciary listing the seller.Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. Itis important that subagents fully explain their duties to buyers. buyer' 3. Buyer's representative (also known as a buyer's agent) A real estate licensee who ishired by prospective buyers to represent them in a real estate transaction. The buyer's rep works in the buyer's best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee,or the buyer's rep may be paid by the seller or by a commission split with the listing broker. 4. Disclosed dual agent Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them allof the traditional fiduciary duties to the clients. Instead, https://westchesterliving.house/real-estate-blog/platinum-drive-realtys-homebuyers-handbook/ 12/23 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 7/3/2018 PlatinumDrive Realty's Homebuyers Handbook | The Westchester LivingTeam @ COMPASS NYSCEF DOC. NO. 85 RECEIVED NYSCEF: 07/14/2018 dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it'svital that allparties give their informed consent. In many states (including NY), this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, islegal in most states. 5. Designated agent (also called, among other things, appointed agency) This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dualagency relationship for licensees at the brokerage. The designated agents give their clients full representation, with allof the attendant fiduciary duties. The broker stillhas the responsibility of supervising both groups of licensees. 6. Nonagency relationship (called, among other things, a transaction broker or facilitator) Some states permit a real estate licensee to have a type o