Preview
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
Buyer's
Guide
0
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
The Future o/Real Estate
SINCE 1888
At Houlihan Lawrence, we pride ourselves in being at theforefront of realestate innovation.
As the area'slongstanding market leader,we are defined by an unmatched dedication to our
clientsand our communities. We are a company ofmore than 1,300 agents united around
a common that
belief. buying or sellinga home is more than a real estatetransaction. It's
a
unique opportunity to helpindividuals realize their dreams and fulfill
personal aspirations.
It's
the special occasion when business partners become neighbors.
In leveraging our global connections and otherselect international firms,our reach expands
from New York City'snorthern suburbs and the Tri-State area to six continents and 65
they'
countries. We connect buyers to theirnext home, whether re around the corner
or across the globe.
Being the market leader means never standing We
still. continue to harness success by always
looking ahead fornew opportunities and forbetter ways to serve our clients.
r X-.. '
Entrarce to Lav rence Park, È on N.
ville, Y.
I
I.
44
Ah
-'i
- ~
)s>re
I,
I
1
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
Table o/Contents
3 Your Agent is Here to Help 15 Thoroughbred Title Services
4 Factors to Consider 16 The Process
Closing
5 Disclosures to Consider 17 Buyers Costs
Closing
6 Home and Loan Pre-Approval 18 Summary
Financing
Buyers'
8 Mortgage and Costs 21 Diagram of a House
Financing
10 an Offer to the Seller 22 of Terms
Making Glossary
12 The Inspection Process 24 Our Services
14 Contract of Sale
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
Your Agent is Here to
Help
THOROUGH MARKET KNOWLEDGE
Our1,300+ sales professionals
have themost thorough knowledge of therealestatemarkets of New York
City'snorthern suburbs.These agents preview hundreds of homes inorder to sharetheirknowledge of local
inventory and valueto match your criteria.
MEDIA RESOURCES
Our agents are equippedwith cuttingedge toolsto match ourbuyers quickly to relevanthomes on the
"InCrowd"
market. Our proprietary mobile app foragentsallows for real
time communication acrossthe
company, giving our buyers an edge withhomes thatare coming to market.
GLOBAL RELOCATIO N
Our Global Business Development Team is internationally
recognized for service
excellenceand expertise
inassistingbuyers throughout our regionand wherever theirrealestateneeds takethem.
PERSONALIZED ATTENTIO N
Our agents pridethemselves on providing a uniquehomebuying experience to meetyour personal goals.
REFERRAL ABILITIES
Our agents can assist
you with for attorneys,
referrals mortgage consultants,title
services,and licensed
home inspectors.
3
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
Factors to Consider When Looking for a Home
i
III
III
III ~II
~ I
C
1 Define your ideal (e.g., suburban
lifestyle or rural).
2 Focus on a particular or geographic
city, town, location.
3 Assess property taxes,common charges,etc.
4 Decide whether or not and
availability proximity to publictransportationis important.
5 Consider which architecturalstyleyou prefer(e.g., Colonial,
Georgian, Contemporary, Ranch or Victorian).
6 Determine thenumber of bedrooms and baths you desire.
4
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
Disclosures to Consider
The followingare mandated New
by Federal, York Stateor local
municipal law. Pleaseconsultyour for a completelist
of laws.
LEAD PAlN T Required fordwellings built
before 1978. First
you will receivea booklet:
"ProtectYour Family
Home,"
From Lead in Your thenyou willreceive disclosureand otherapplicabledocuments from
thesellerbeforecontractsare signed,
preferablyduring negotiations.Receiptof thisinformationis
acknowledged by signingand datingthe appropriateform.
PROPERTY CONDI T IO N Required forallresidential
dwellings.The buyer acknowledges receiptof the
"ResidentialProperty
DISCLOSURE Report"
Condition Disclosure by signingand dating theappropriateform. The purchaser receives
informationfrom the seller
beforethe contract If information
is signed. is not
provided, the
purchaser must receive$500 creditat closing.
AFFILIATED BUSINE SS Required for purchasersworking with Houlihan Lawrence. Purchasers acknowledge receiptof
DISCLOSURE S information and the appropriateform.
by signing dating
FEMA FLOOD ZONE S Listingagentsask sellers
if thepropertyis in
a designated floodzone and convey informationto
the agentworking with buyers.This information is conveyedto prospectivebuyers once an active
is shown
interest in theproperty.If in
doubt,Federal Emergency Management Agency (FEMA)
maps are viewed.Please note:theFEMA maps show areas subjectto the
highest riskof flooding.
They do not,however, smaller
identify riskzones such as smallstreams,risksin rural
areasor floods
thatexceed 100 year floodlevelsor stormdrainage problems.Additional information and flood
maps at fema.gov/business/nfip/mscjumppage.shtm.
are available
MEGAN'S LAW For informationon Megan's Law and the presence of convictedsex offenders
incommunities, visit
theNY Attorney General'swebsite:www.criminaljustice.state.ny.usor contacttheNew York State
Divisionof CriminalJusticeServices at 800-262-3257.
AGENCY DISCLOSURE LAW As a homebuyer, you have choicesregarding theservice and representationyou receivewhen
working with an agent.Your Houlihan Lawrence agent willpresentyou with therequired New
York State AgencyDisclosure document and answer any questions thatyou might have.Receipt of
thisinformationis acknowledged by signingand datingthe appropriateform.
5
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
Home Financing and Loan Pre-Approval
In today'scompetitiverealestate market,
homebuyers are obtaininga pre-approvalformortgages priorto purchasing a home. Thoroughbred
Mortgage loan officers
are readily
available to assist
you in the process pre-approval.
of obtaining
ADVANTAGES OF LOA N • Verifiesthepurchase priceyou can afford.
PRE-APPROVAL • Prepares you to make an offer
on the you wish to purchase.
property
• Expedites the process.
buying
• Indicatesthatyou are credit-worthy and prepared to purchase a home.
financially
REQUIREMENTS FOR The followingdocuments are requiredby the mortgage representative:
PRE-APPROVAL • W-2 forms and federal
tax returnsfrom the pasttwo years.
~ for the 30 days.
Pay stubs most recent
• Two months of financial
asset statements.
• Creditreport.
Assets -to verifysu—
sufficient
fundsneeded to close
the loan.
FINANCIAL INFORMATION
Credit- to evaluateyour credithistory.
REVIEWED IN THE
PRE-APPROVAL PROCESS Income - to certify
thatyou —
can affordmortgage payments according to yourincome.
Loan Pre-Commitment - A writtenguarantee from a lenderto provide
LOAN PRE-APPROVAL financingup to a
specifiedamount. This typeof pre-approvalinvolves check
a credit and verificationof assets
and income. Then, a reviewof all
property relatedinformation(appraisal, insurance
title, and
contract)by theunderwriter willbe requiredto finalize
theloan. If you
have any questions
regardingthepre-approval process or if you
would liketo obtaina pre-approvedloan,a
Thoroughbred Mortgage loan officercan you.
assist
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
I
L—
C O N SID ER A T H O RO U G H B R E D M O R T G AG E P R E -AP P R OV A L
You'
You'llinstantlygain a distinct
advantage over otherhouse hunters.When you meet with sellers
and real
you' It'
estateagents,your pre-approved status them
tells that you'vegot thefinancialbacking to make a deal.
It's
a positionof strength
thatallows you to negotiate
more -and competitively.
confidently
P RO D U C T VA RI E T Y
you'
Apply your pre-approval to almostany type of home loan.Whatever your you'll
situation, be expertly
matched with a loanthatmakes sense for you.
P P R OVA
P R E -A L
you'
You can closein less time
than you ever imagined.With your pre-approval, re armed with the
reassuring knowledge thatsomeone's standingwith you deal
to get the done. Our loan officersare
committed to making your home buying experience a happy one. Whether it's your
first
time or your
we' "Yes."
tenth,we'lldo everythingthatwe possibly can to say,
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
Mortgage Financing and Buyer's Costs
TIPS TO CONSIDER WHEN LOAN SHOPPING
Make it a point
to ask aboutpoints.When responding to an ad or ADDITIONAL MORTGAGE-RELATED CO S TS
callinga lenderto inquire
about be sure
rates, to check if the
quoted
. The following costsmay vary accordingto mortgage amount:
ratereflects
payment of points.
Many loanprograms allow
you to receivea discounted rate
interest pointor origination Appraisal Fee -A fee forappraisingthevalue of theproperty.
by paying
fees. Onepointequals 10/oof the
loanamount, and themore pointsyou Lender'sAttorney'sFee -A fee paid
to thelender'sattorneyfor
can or wishto pay, the
more you can discountyour rate.
Paying points reviewing thetitle
to theproperty,resolving any title
problems,
is nota requirement; an option
it's just lendersofferto accommodate coordinating theclosing,typingthebank papers,attending the
theimmediate or long-term monthly payment concerns of home closing,dispersingthefunds at closing,
and ensuring the documents
mortgage customers. are accurateand properly recorded.
BUYERS' CreditReport Fee -A fee for investigating
theborrower's creditrating.
COSTS
Homeowners Insurance - An insurance thelender
Policy policy listing
The followingcostsmay vary according to mortgage amount: .
as theloss payee.
The buyer is requiredto bringa paidreceiptfor this
Interim -
Interest Interestaccrued on themortgage for the
number of policyto theclosing.
Cost willvary according to typeof coverageand
days remaining in themonth of theclosing. insurance company.
Mansion Tax -All home sales of $1,000,000
and over are subject
to Mortgage Recording Fee -A fee paid —
to thecounty clerk's
officefor
thisNY State tax
of 10/oof the
entirepurchase price. mortgage documentation.
Title
Insurance - A one-time charge to thebuyer for insurancethat
Mortgage Tax -A NY State taxbetween 1.05% and total
1.55°/oof the
mortgage minus the$30 residentialfee exemption. guarantees compensation if the
title
should prove to be defective
(e.g.,
if the
previous owner had a taxlienon theproperty).Two typesof
OriginationFee -A fee paid
at thetime themortgage application
insurance includerequired coverage of the
lender and recommended
is processed.
coverage of the
buyer.
Points -Each point is a fee equal
to 10/oof the
mortgage amount.
PrivateMortgage Insurance -A premium p—
paid the buyer
(PMI) by
to insurethelender if the
buyer is borrowingmore than 80°/o of the
appraised value home.
of the
Tax and Insurance Escrows - Lender requiredfunds deposited the
by
buyer intoan escrow account, to be usedby thebank to paythenext
year'staxesand insurance.
thoroughbredmortgage.com ==
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
Making an Offer to the Seller
you'
Once you'vefound a home you wish to purchase,
the next an ofer
step is to present to the seller
Your agentwillassistyou in making the ofer;
which willbe delivered
to the seller's
agent and then to the seller
Negotiations willcontinueuntilyou and the seller
reach an agreement on the ofer
TERMS OF AN OFFER Down Payment - The amount of cashyou are prepared in
to invest thepurchase.
Contingencies- The two types of contingenciesare stipulations the
primary regarding
mortgage and thehome inspections.The mortgage commitment contingency willbe satisfied
once you have a mortgage commitment in place.
Other contingencies includethecompletion
of satisfactory
home inspections(e.g., engineering,
termite),
appraisal,or signedcontract.
Personal - Itemsthat are notfixtures notbe includedinthe purchase.
Property may
Date - The date upon which you would liketo takethetitle
to theproperty.This is
Closing
about"
oftenan "on or date, mutuallyagreed to by thebuyer and seller.
A STEP-BY-STEP PROCESS The followingdocuments are requiredby the mortgagerepresentative:
FROM OFFER TO CONTRAC T 1. Obtain a pre-approval from Thoroughbred Mortgage fora loanbefore theoffer.
making
SI G N I N G 2. Perform inspections.
3. Contact a realestate
attorney to representyou, thereby contract
facilitating execution.
4. Tell yourattorneyyou choose Thoroughbred Titleand requestthey contactthem to start
thetitle
process.
5. Verifyimportant informationsuch as theproperty taxes,square footageand of
certificate
occupancy priorto signingcontracts.Your Houlihan Lawrence agent canreferyou to the
proper sourcesfor this
information.
6. Sign contractsina timelymanner.
AN ACCEPTABLE OFFER An acceptableofferdoes notprecludeotherpotential buyers from making another offeron
thehouse. The still
possibility existsthatanother buyer willmake a higherofferand/or offer
betterterms.All offers
must be presentedto theseller
regardlessof thestage of the
selling
process; buyers
therefore, are urgedto conduct alldesiredproperty inspectionsas quicklyas
possibleand to enterintoa fully
executed contract.Buyers and sellers
are legallybound to one
another once allcontingencieshave been satisfied.
An acceptableofferis not
binding to either
buyer'
partyuntilthecontracts have been signed byboth partiesand deliveredback to thebuyer's
attorney.
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
The Inspection Process
Itis veryimportantto conduct a thoroughinspectionof yourprospectivehome. Conduct inspectionsas soon once your
as possible oferhas been
accepted.If youare purchasing a home thatrequiressignificant
renovations,multipleinspectionsmay be neededto assess the current
conditionof
the property.
Schedule the inspections
when you can be present.Thiswillallowyou to become familiarwithyour prospective new home, evaluate
its present
condition,and decide what repairs
willbe needed.As of December 31,2005, the Home Inspection
ProfessionalLicensingAct took eject.
Real estatelicensees
may ONLY recommend licensedhome inspectors.You .may
may access website for
the following a list
of licensed
home inspectors:
dos.state.ny.us.
RECOMMENDED TESTS
Asbestos - Thismineral fiberwas once used for insulation
and fireprotection.
Asbestos fibersreleasedinto
theair may pose a healthhazard. Asbestos ingood such
condition, in
as that ceilingtiles,
may not need to
be removed, but insteadcovered and sealed.Any work performed on asbestosmust be doneby a properly
trainedand licensed contractor.
Carbon Monoxide - This and gas can
tasteless be fatal
if inhaledat sufficient Carbon
levels.
odorless,colorless,
monoxide inthe home is producedfrom fuel-burning sources such or wood-fired
as gas, oil, heating systems.
Each home is requiredby law to haveat least
one operablecarbon monoxide detectoron thelowest bedroom
level.
Compliance willbe affirmed at theclosing.
- Thisinspectionwillassess themajor structuralelements of the and
Engineering home, out-buildings, pool,
as wellas theheating,airconditioning,plumbing, and electrical
systems.
FEMA Flood Zone - The Federal Management (FEMA) has generatedmaps based on
Emergency Agency
floodriskassessments. Information on your area,includinglocalmaps and is available
rates, at
floodsmart.gov.
Lead Paint - Paintchipsor dustfrom leadpaint are toxic
and can cause lead when
deteriorating poisoning
inhaled or ingested.
If the
home was builtbefore1978, theseller
must complete a leadpaintdisclosure
form,which willbe signedby the buyer acknowledging receiptof thedisclosure.
A lead disclosure
booklet
endorsed by theEPA will alsobe provided to bothparties.
Mold - The presence of mold could be considereda material and therefore
potentially property condition, any
knowledge about mold should be disclosedby a propertyseller
to a potential
buyer.EffectiveJanuary 1,2016,
New York State is requiring
licensesfor moldassessors andmold remediators.A mold assessorcan test for
mold and prepare a remediationplan,whereas theremediator executes remediation.A company or person
cannot be licensedas bothan assessor and remediatorand the two companies cannot be relatedinany way.
StartingJanuary 1,2016, real
estateagentscan only recommend licensedcontractors.
OilTank - Oiltanks of 1,000gallonsor more must be testedfor leakage.
Be sureto ask if the
seller
has
purchased tank insurance. to test all buried
It is advisable oiltanks.
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FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018
Pest and Termite- An inspection willbe performed for the presence
of all
forms of wood-destructive insects
in thehome and outbuildings.The inspectionreport should contain of non-infestation,
a certificate or
information detailingexistingdamage and recommended treatment.
Radon -This odorlessand radioactivegas can from soil rock below
invisible, slightly seep into
a house and
thehome's foundation.Prolonged exposure to highlevelsof radoncan pose a healthhazard.In most cases, if
radon steps can
is detected, be takento remedy the problem.
Septic- A visual inspectionof thesepticsystem area or dye test will
oftenbe performed. Since septic
systems
require routinemaintenance, be sureto findoutwhen the system was last pumped out and its condition
at
thattime.
Smoke Detector-
Preview
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 Buyer's Guide 0 ~ FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 The Future o/Real Estate SINCE 1888 At Houlihan Lawrence, we pride ourselves in being at theforefront of realestate innovation. As the area'slongstanding market leader,we are defined by an unmatched dedication to our clientsand our communities. We are a company ofmore than 1,300 agents united around a common that belief. buying or sellinga home is more than a real estatetransaction. It's a unique opportunity to helpindividuals realize their dreams and fulfill personal aspirations. It's the special occasion when business partners become neighbors. In leveraging our global connections and otherselect international firms,our reach expands from New York City'snorthern suburbs and the Tri-State area to six continents and 65 they' countries. We connect buyers to theirnext home, whether re around the corner or across the globe. Being the market leader means never standing We still. continue to harness success by always looking ahead fornew opportunities and forbetter ways to serve our clients. r X-.. ' Entrarce to Lav rence Park, È on N. ville, Y. I I. 44 Ah -'i - ~ )s>re I, I 1 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 Table o/Contents 3 Your Agent is Here to Help 15 Thoroughbred Title Services 4 Factors to Consider 16 The Process Closing 5 Disclosures to Consider 17 Buyers Costs Closing 6 Home and Loan Pre-Approval 18 Summary Financing Buyers' 8 Mortgage and Costs 21 Diagram of a House Financing 10 an Offer to the Seller 22 of Terms Making Glossary 12 The Inspection Process 24 Our Services 14 Contract of Sale I I ev.4 '1 I I ,1 f 1 2 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 Your Agent is Here to Help THOROUGH MARKET KNOWLEDGE Our1,300+ sales professionals have themost thorough knowledge of therealestatemarkets of New York City'snorthern suburbs.These agents preview hundreds of homes inorder to sharetheirknowledge of local inventory and valueto match your criteria. MEDIA RESOURCES Our agents are equippedwith cuttingedge toolsto match ourbuyers quickly to relevanthomes on the "InCrowd" market. Our proprietary mobile app foragentsallows for real time communication acrossthe company, giving our buyers an edge withhomes thatare coming to market. GLOBAL RELOCATIO N Our Global Business Development Team is internationally recognized for service excellenceand expertise inassistingbuyers throughout our regionand wherever theirrealestateneeds takethem. PERSONALIZED ATTENTIO N Our agents pridethemselves on providing a uniquehomebuying experience to meetyour personal goals. REFERRAL ABILITIES Our agents can assist you with for attorneys, referrals mortgage consultants,title services,and licensed home inspectors. 3 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 Factors to Consider When Looking for a Home i III III III ~II ~ I C 1 Define your ideal (e.g., suburban lifestyle or rural). 2 Focus on a particular or geographic city, town, location. 3 Assess property taxes,common charges,etc. 4 Decide whether or not and availability proximity to publictransportationis important. 5 Consider which architecturalstyleyou prefer(e.g., Colonial, Georgian, Contemporary, Ranch or Victorian). 6 Determine thenumber of bedrooms and baths you desire. 4 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 Disclosures to Consider The followingare mandated New by Federal, York Stateor local municipal law. Pleaseconsultyour for a completelist of laws. LEAD PAlN T Required fordwellings built before 1978. First you will receivea booklet: "ProtectYour Family Home," From Lead in Your thenyou willreceive disclosureand otherapplicabledocuments from thesellerbeforecontractsare signed, preferablyduring negotiations.Receiptof thisinformationis acknowledged by signingand datingthe appropriateform. PROPERTY CONDI T IO N Required forallresidential dwellings.The buyer acknowledges receiptof the "ResidentialProperty DISCLOSURE Report" Condition Disclosure by signingand dating theappropriateform. The purchaser receives informationfrom the seller beforethe contract If information is signed. is not provided, the purchaser must receive$500 creditat closing. AFFILIATED BUSINE SS Required for purchasersworking with Houlihan Lawrence. Purchasers acknowledge receiptof DISCLOSURE S information and the appropriateform. by signing dating FEMA FLOOD ZONE S Listingagentsask sellers if thepropertyis in a designated floodzone and convey informationto the agentworking with buyers.This information is conveyedto prospectivebuyers once an active is shown interest in theproperty.If in doubt,Federal Emergency Management Agency (FEMA) maps are viewed.Please note:theFEMA maps show areas subjectto the highest riskof flooding. They do not,however, smaller identify riskzones such as smallstreams,risksin rural areasor floods thatexceed 100 year floodlevelsor stormdrainage problems.Additional information and flood maps at fema.gov/business/nfip/mscjumppage.shtm. are available MEGAN'S LAW For informationon Megan's Law and the presence of convictedsex offenders incommunities, visit theNY Attorney General'swebsite:www.criminaljustice.state.ny.usor contacttheNew York State Divisionof CriminalJusticeServices at 800-262-3257. AGENCY DISCLOSURE LAW As a homebuyer, you have choicesregarding theservice and representationyou receivewhen working with an agent.Your Houlihan Lawrence agent willpresentyou with therequired New York State AgencyDisclosure document and answer any questions thatyou might have.Receipt of thisinformationis acknowledged by signingand datingthe appropriateform. 5 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 Home Financing and Loan Pre-Approval In today'scompetitiverealestate market, homebuyers are obtaininga pre-approvalformortgages priorto purchasing a home. Thoroughbred Mortgage loan officers are readily available to assist you in the process pre-approval. of obtaining ADVANTAGES OF LOA N • Verifiesthepurchase priceyou can afford. PRE-APPROVAL • Prepares you to make an offer on the you wish to purchase. property • Expedites the process. buying • Indicatesthatyou are credit-worthy and prepared to purchase a home. financially REQUIREMENTS FOR The followingdocuments are requiredby the mortgage representative: PRE-APPROVAL • W-2 forms and federal tax returnsfrom the pasttwo years. ~ for the 30 days. Pay stubs most recent • Two months of financial asset statements. • Creditreport. Assets -to verifysu— sufficient fundsneeded to close the loan. FINANCIAL INFORMATION Credit- to evaluateyour credithistory. REVIEWED IN THE PRE-APPROVAL PROCESS Income - to certify thatyou — can affordmortgage payments according to yourincome. Loan Pre-Commitment - A writtenguarantee from a lenderto provide LOAN PRE-APPROVAL financingup to a specifiedamount. This typeof pre-approvalinvolves check a credit and verificationof assets and income. Then, a reviewof all property relatedinformation(appraisal, insurance title, and contract)by theunderwriter willbe requiredto finalize theloan. If you have any questions regardingthepre-approval process or if you would liketo obtaina pre-approvedloan,a Thoroughbred Mortgage loan officercan you. assist 6 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 I L— C O N SID ER A T H O RO U G H B R E D M O R T G AG E P R E -AP P R OV A L You' You'llinstantlygain a distinct advantage over otherhouse hunters.When you meet with sellers and real you' It' estateagents,your pre-approved status them tells that you'vegot thefinancialbacking to make a deal. It's a positionof strength thatallows you to negotiate more -and competitively. confidently P RO D U C T VA RI E T Y you' Apply your pre-approval to almostany type of home loan.Whatever your you'll situation, be expertly matched with a loanthatmakes sense for you. P P R OVA P R E -A L you' You can closein less time than you ever imagined.With your pre-approval, re armed with the reassuring knowledge thatsomeone's standingwith you deal to get the done. Our loan officersare committed to making your home buying experience a happy one. Whether it's your first time or your we' "Yes." tenth,we'lldo everythingthatwe possibly can to say, 7 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 Mortgage Financing and Buyer's Costs TIPS TO CONSIDER WHEN LOAN SHOPPING Make it a point to ask aboutpoints.When responding to an ad or ADDITIONAL MORTGAGE-RELATED CO S TS callinga lenderto inquire about be sure rates, to check if the quoted . The following costsmay vary accordingto mortgage amount: ratereflects payment of points. Many loanprograms allow you to receivea discounted rate interest pointor origination Appraisal Fee -A fee forappraisingthevalue of theproperty. by paying fees. Onepointequals 10/oof the loanamount, and themore pointsyou Lender'sAttorney'sFee -A fee paid to thelender'sattorneyfor can or wishto pay, the more you can discountyour rate. Paying points reviewing thetitle to theproperty,resolving any title problems, is nota requirement; an option it's just lendersofferto accommodate coordinating theclosing,typingthebank papers,attending the theimmediate or long-term monthly payment concerns of home closing,dispersingthefunds at closing, and ensuring the documents mortgage customers. are accurateand properly recorded. BUYERS' CreditReport Fee -A fee for investigating theborrower's creditrating. COSTS Homeowners Insurance - An insurance thelender Policy policy listing The followingcostsmay vary according to mortgage amount: . as theloss payee. The buyer is requiredto bringa paidreceiptfor this Interim - Interest Interestaccrued on themortgage for the number of policyto theclosing. Cost willvary according to typeof coverageand days remaining in themonth of theclosing. insurance company. Mansion Tax -All home sales of $1,000,000 and over are subject to Mortgage Recording Fee -A fee paid — to thecounty clerk's officefor thisNY State tax of 10/oof the entirepurchase price. mortgage documentation. Title Insurance - A one-time charge to thebuyer for insurancethat Mortgage Tax -A NY State taxbetween 1.05% and total 1.55°/oof the mortgage minus the$30 residentialfee exemption. guarantees compensation if the title should prove to be defective (e.g., if the previous owner had a taxlienon theproperty).Two typesof OriginationFee -A fee paid at thetime themortgage application insurance includerequired coverage of the lender and recommended is processed. coverage of the buyer. Points -Each point is a fee equal to 10/oof the mortgage amount. PrivateMortgage Insurance -A premium p— paid the buyer (PMI) by to insurethelender if the buyer is borrowingmore than 80°/o of the appraised value home. of the Tax and Insurance Escrows - Lender requiredfunds deposited the by buyer intoan escrow account, to be usedby thebank to paythenext year'staxesand insurance. thoroughbredmortgage.com == 8 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 i I. p 4 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 Making an Offer to the Seller you' Once you'vefound a home you wish to purchase, the next an ofer step is to present to the seller Your agentwillassistyou in making the ofer; which willbe delivered to the seller's agent and then to the seller Negotiations willcontinueuntilyou and the seller reach an agreement on the ofer TERMS OF AN OFFER Down Payment - The amount of cashyou are prepared in to invest thepurchase. Contingencies- The two types of contingenciesare stipulations the primary regarding mortgage and thehome inspections.The mortgage commitment contingency willbe satisfied once you have a mortgage commitment in place. Other contingencies includethecompletion of satisfactory home inspections(e.g., engineering, termite), appraisal,or signedcontract. Personal - Itemsthat are notfixtures notbe includedinthe purchase. Property may Date - The date upon which you would liketo takethetitle to theproperty.This is Closing about" oftenan "on or date, mutuallyagreed to by thebuyer and seller. A STEP-BY-STEP PROCESS The followingdocuments are requiredby the mortgagerepresentative: FROM OFFER TO CONTRAC T 1. Obtain a pre-approval from Thoroughbred Mortgage fora loanbefore theoffer. making SI G N I N G 2. Perform inspections. 3. Contact a realestate attorney to representyou, thereby contract facilitating execution. 4. Tell yourattorneyyou choose Thoroughbred Titleand requestthey contactthem to start thetitle process. 5. Verifyimportant informationsuch as theproperty taxes,square footageand of certificate occupancy priorto signingcontracts.Your Houlihan Lawrence agent canreferyou to the proper sourcesfor this information. 6. Sign contractsina timelymanner. AN ACCEPTABLE OFFER An acceptableofferdoes notprecludeotherpotential buyers from making another offeron thehouse. The still possibility existsthatanother buyer willmake a higherofferand/or offer betterterms.All offers must be presentedto theseller regardlessof thestage of the selling process; buyers therefore, are urgedto conduct alldesiredproperty inspectionsas quicklyas possibleand to enterintoa fully executed contract.Buyers and sellers are legallybound to one another once allcontingencieshave been satisfied. An acceptableofferis not binding to either buyer' partyuntilthecontracts have been signed byboth partiesand deliveredback to thebuyer's attorney. 10 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 The Inspection Process Itis veryimportantto conduct a thoroughinspectionof yourprospectivehome. Conduct inspectionsas soon once your as possible oferhas been accepted.If youare purchasing a home thatrequiressignificant renovations,multipleinspectionsmay be neededto assess the current conditionof the property. Schedule the inspections when you can be present.Thiswillallowyou to become familiarwithyour prospective new home, evaluate its present condition,and decide what repairs willbe needed.As of December 31,2005, the Home Inspection ProfessionalLicensingAct took eject. Real estatelicensees may ONLY recommend licensedhome inspectors.You .may may access website for the following a list of licensed home inspectors: dos.state.ny.us. RECOMMENDED TESTS Asbestos - Thismineral fiberwas once used for insulation and fireprotection. Asbestos fibersreleasedinto theair may pose a healthhazard. Asbestos ingood such condition, in as that ceilingtiles, may not need to be removed, but insteadcovered and sealed.Any work performed on asbestosmust be doneby a properly trainedand licensed contractor. Carbon Monoxide - This and gas can tasteless be fatal if inhaledat sufficient Carbon levels. odorless,colorless, monoxide inthe home is producedfrom fuel-burning sources such or wood-fired as gas, oil, heating systems. Each home is requiredby law to haveat least one operablecarbon monoxide detectoron thelowest bedroom level. Compliance willbe affirmed at theclosing. - Thisinspectionwillassess themajor structuralelements of the and Engineering home, out-buildings, pool, as wellas theheating,airconditioning,plumbing, and electrical systems. FEMA Flood Zone - The Federal Management (FEMA) has generatedmaps based on Emergency Agency floodriskassessments. Information on your area,includinglocalmaps and is available rates, at floodsmart.gov. Lead Paint - Paintchipsor dustfrom leadpaint are toxic and can cause lead when deteriorating poisoning inhaled or ingested. If the home was builtbefore1978, theseller must complete a leadpaintdisclosure form,which willbe signedby the buyer acknowledging receiptof thedisclosure. A lead disclosure booklet endorsed by theEPA will alsobe provided to bothparties. Mold - The presence of mold could be considereda material and therefore potentially property condition, any knowledge about mold should be disclosedby a propertyseller to a potential buyer.EffectiveJanuary 1,2016, New York State is requiring licensesfor moldassessors andmold remediators.A mold assessorcan test for mold and prepare a remediationplan,whereas theremediator executes remediation.A company or person cannot be licensedas bothan assessor and remediatorand the two companies cannot be relatedinany way. StartingJanuary 1,2016, real estateagentscan only recommend licensedcontractors. OilTank - Oiltanks of 1,000gallonsor more must be testedfor leakage. Be sureto ask if the seller has purchased tank insurance. to test all buried It is advisable oiltanks. 12 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 94 RECEIVED NYSCEF: 07/14/2018 Pest and Termite- An inspection willbe performed for the presence of all forms of wood-destructive insects in thehome and outbuildings.The inspectionreport should contain of non-infestation, a certificate or information detailingexistingdamage and recommended treatment. Radon -This odorlessand radioactivegas can from soil rock below invisible, slightly seep into a house and thehome's foundation.Prolonged exposure to highlevelsof radoncan pose a healthhazard.In most cases, if radon steps can is detected, be takento remedy the problem. Septic- A visual inspectionof thesepticsystem area or dye test will oftenbe performed. Since septic systems require routinemaintenance, be sureto findoutwhen the system was last pumped out and its condition at thattime. Smoke Detector-