Preview
FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
EXHIBIT 86
FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
HOULIHAN LAWRENCE
SINCE 1888
BUYER'S GUIDE
FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
HOULlHAN LAWRENCE
SINCE 1888
THE FUTURE
OF REAL ESTATE
SINCE 1888
At Houlihan Lawrence, we pride ourselves in being at the forefront of Real Estate
innevation. As the area's longstanding market leader, we are defined by an unmatched
dedication to our clients and our ec-----Mies. We are a compa-f of more than 1,300
agents united around a co,,sisso,1belief: that buying or selling a home is more than a Real
Estate transaction. It's a unique opportunity to help indiv duals realize their dreams
and fulfill personal aspirations. It's the special eccasión when business partners becerñê
neighbors.
With service, quality, and innovation at our core, we are the area's largest independently
owned business with 30 offices serving Westchester, Fairfield, Putnam, and Dutchess
counties. Our extensive local netwórk provides an exclusive source of buyers. Our deep-
rooted dedication to the co111111ussities we serve shines through in everything we do and
solidifies our position as the local expert.
In leveraging our global cónnections and other select international firms, our reach
6-cpands from New York City's northern suburbs and the Tri-State Area to six continents
and 56 countries. We connect the right buyers to the right homes, whether they are
around the corner or across the globe.
Being the market leader means never standing still. We continue to harness our success
by always looking ahead for new eppertüñities and for better ways to serve our customers.
HOULIHANLAWRENCE.COM
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
TABLE OF CONTENTS
Here to Yon... ............3 Contract ofSale 14
Help
Factors to Consider 4 Tharüüg|à rsd Title Servican 15
Disclosures to f'nnsider 5 The Process 16
Closing
Buyers'
Home Financing Closing Costs
and Loan Pre-Approval 6 and ... .....-18
Su:::::.-f
Buyers'
Mortgügé Financing and Costs.....9 Diagram of a House 21
an Offer to the Seller.... 10 ofTerms 22
Making Glossary
The Inspection Process ....12 OurServices ................24
HOULIHANLAWRENCE.COM
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
HOULIHAN LAWRENCE
HERE TO HELP YOU
THOROUGH MARKET KNOWLEDGE
Our netwerk of over 1,300 sales professiciials has thorough kiiGwledge of the real estate
markets of New York City's northern suburbs. These agents preview liandreds of homes
in order to share their kil6wledge of local iiiveiitory and value to match your criteria.
MEDIA RESOURCES
Our agents can show you homes that are on the Internet, on the Multiple Listing Service
(MLS) website or advei tised in print publications. In addition, they can help you keep
up-to-date with new listings and price reductions with our exclusive Home Finder. Our
"InCrowd" cc--
proprietary network allows our agents to te with one another in
real time, giving our buyers an edge with homes that are coilillig to market.
GLOBAL RELOCATION
Our Global Betsiness Devé|op;iic;it Team is internationally recGgiii-ed for service excellerice
and expertise in assisting buyers tlireüghout our region and wlicrever their real estate
needs take them.
PERSONALIZE D ATTENTION
Our agents pride themselves on previdilig a unique hemchuying expcrictice to meet
your personal goals.
RE FERRAL ABILITIES
Our agents can assist you with referrals for attorneys, mortgage consultants, title services,
and licensed home inspectors.
HOULIHANLAWRENCE.COM
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
FACTORS TO CONSIDER
WHEN LOOKING FOR A HOME
• Select the area that you prefer suburban or rural).
(e.g.,
• Focus on a particular or geógraphic location.
city, town,
• Assess common etc.
prüperty taxes, charges,
• Decide whether or not and to public transportation is important
arcil:L·ility proximity
to you.
• CGñsider which architectural style you prefer (e.g., Colonial,Geergian, Contemporary,
Ranch or Victorian).
• Determine the number of bedracins and baths that you reqüire.
HOULIHANLAWRENCE.COM
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
DISCLOSURES
TO CONSIDER
The following are mandated by Federal, New York State or local municipal law. Please
consult your attorney for a complete listoflaws.
LEAD PAINT
Required for dwellings builtbefore 1978. First you willreceive a booklet: "Protect Your
Home,"
Family From Lead in Your then you will receive disclosure and other applicable
documents from the sellerbefore contracts are signed, preferably during negotiations.
Receipt of thisinformation is acknowledged by signing and dating the appropriate form.
PROPERTY CONDITION DISCLOSURE
Required for all residential dwellings. The purchaser acknowledges receipt of the
Property"
"Rights of Purchaser of Residential Real by signing and dating the appropriate
form. The purchaser receives information from the seller before the contract is signed. If
information is notprovided, the purchaser must receive $500 credit at closing.
AFFILIATED BUSINESS DISCLOSURE
Required for purchasers working with Houlihan Lawrence. Purchasers acknowledge
receipt of information by signing and dating the appropriate form.
FEMA FLOOD ZONES
Listing agents ask sellers if the property is in a designated flood zone and convey
information to the agent working with buyers. This information is conveyed to
prospective buyers once an active interest isshown in the property. Ifin doubt, Federal
Emergency Management Agency (FEMA) maps are viewed. Please note: the FEMAmaps
show areas subject to the highest risk of flooding.They do not, however, identify smaller
riskzones such as small streams, risks in rural areas or floodsthat exceed 100 year flood
levels or storm drainage problems. Additional information and flood maps are available
atwww.fema.gov/business/nfip/mscjumppage.shtm.
MEGAN'S LAW
For information on Megan's Law and the presence of convicted pedophiles in
communities, visitthe NY Attorney General's website: www.criminaljustice.state.ny.us
or contact the New York State Division of Criminal Justice Services at 800-262-3257.
AGENCY DISCLOSURE LAW
As a homebuyer, you have choices regarding the service and representation you receive
when working with an agent. Your Houlihan Lawrence agent will present you with the
required New York State Agency Disclosure document and answer any questions that
you might have. Receipt of thisinformation isacknowledged by signing and dating the
appropriate form.
HOULIHANLAWRENCE.COM
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
HOME FINANCING
AND LOAN PRE-APPROVAL
In today'scompetitive real estate market, homebuyers are obtaining a pre-approval for mortgages prior
to purchasing a home. Thoroughbred Mortgage loan officersare readily available to assistyou in the
process of obtaining pre-approval from a lending institution.
ADVANTAGES OF LOAN PRE-APPROVAL
• Verifies the purchase price you can afford.
• Prepares you to make an offeron the you wish to purchase.
property
• Expedites the process.
buying
• Indicates that you are and prepared to purchase a home.
credit-worthy financially
REQUIREMENTS FOR PRE-APPROVAL
The following documents are required by the mortgage representative:
• W-2 forms and federal tax returns from the past two years.
• stubs for the most recent 30 days.
Pay
• Two months of financial asset statements.
• Credit Report.
FINANCIAL INFORMATION REVIEWED IN THE PRE-APPROVAL PROCESS
Assets - to sufficientfunds needed to close the loan.
verify
Credit - to evaluate your credit based on the size of the loan.
standing
Income - to thatyou can afford mortgage payments to your income.
certify according
LOAN PRE-APPROVAL
Loan Commitment - A written guarantee from a lender to provide to a specifiedamount.
financing up
This type of pre-approval involves a creditcheck and verification of assetsand income. Then, a review
of allproperty related information (appraisal, title,insurance and contract) by the underwriter will
be required to finalize the loan. Ifyou have any questions regarding the pre-approval process or if
you would liketo obtain a pre-approved loan, a Thoroughbred Mortgage loan officercan assist you.
HOULIHANLAWRENCE.COM
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
Additional Benefits:
CONSIDER A THOROUGHBRED MORTGAGE PRE-APPROVAL
You'll instantly gain a distinct advantage over other house hunters. When you meet with
sellers and real estate agents, your pre-apprGVcd status tells them that you've got the
financial backing to make a deal. It's a position of strength that allows you to negotiate
more - and competitively.
confidently
PRODUCT VARIETY
Apply your pre-approval to almost any type of home loan. Whatever your situation,
you'll be expertly matched with a loan that makes sense for you.
PRE-APPROVAL
You can close in less time than you ever irwagined. With your pre-approval, you're armed
with the reassuring knoviledge that serseene's standing with you to get the deal done.
Our loan officers are committed to meling your home buying experieñce a happy one.
Whether it's your first time or your tenth, we'll do everything that we possibly can to
"Yes."
say,
HOULIHANLAWRENCE.COM
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
MORTGAGE
BUYERS'
FINANCING AND COSTS
TIPS TO CONSIDER WHEN LOAN SHOPPING ADDITIONAL MORTGAGE-RELATED COSTS
Make ita Point to Ask about Points The fa"c ;ing costs may vary according to martgags
amount:
When responding to an ad or calling a lender to
inquire about rates, be sure to check if the quoted Apprais al Fee - A fee for appraising the value of
interest rate reflects payment of points. Many loan the property.
programs allow you to receive a discounted interest
Lender's Morneys Fee - A fee paid to the lender's
rate by paying point or origination fees. One point
attorney for reviewing the title to the property,
equals 1% of the loan amount, and the more points
resolving any title problems, coordinating the
you can or wish to pay, the more you can discount
. closing, typing the bank papers, attending the
your rate. Paying points is not a s oquis o1ssont; it's
closing, dispersing the funds at closing, and ensuring
just an option lenders offer to accómmodate the
the documents are accurate and properly reccidad.
immediate or long-term monthly payment có1icerils
of home mortgage customers.
Credit Report Fee - A fee for investigating the
BUYERS' borrower's credit rating.
COSTS
II°ª¹EGWhªrs Insurance - An insurance
The costs to mortgage Policy policy
following may vary according
listing the lender as the loss payee. The buyer is
required to bring a paid receipt for this policy to the
Interim Interest - Interest accrued on the mortgage closing. Cost will vary accerdilig to type of cóverage
for the ilumber of days remaining in the month of and insurance company.
the closing.
Mortgage Fee - A fee paid to the
Recording county
Mansion Tax - All home sales of $1,000,000 and over clerk's office for mortgage documeiitation.
are subject to this NY State tax of 1% of the entire
Mortgage Title Insurance - A one-time charge to the
purchase price.
buyer for insurance that guarantees compensation if,
Mortgage Tax - A NY State tax between and
1.05% for the title should prove to be defective
any reason,
1.55% of the total mortgage minus the $30 residclitial if the previóüs owner had a tax lien on the
(e.g.,
fee exemption. property). Two types of insurance include required
coverage of the lender and recommerided coverage
Origination Fee - A fee paid at the time the mortgage
of the buyer.
application is processed.
-
Points Each point is a fee equal to 1% of the
mortgage amount. Mortgage information provided ThoroughbrêÃ
by
Private Mortgage Insurance (PMI)
- A premium
paid by the buyer to insure the lender if the buyer
is borrowing more than 80% of the appraised value
of the home.
THOROUGHBRED MORTGAGE
Tax and Insurance Escrows - Lender required funds ThüróüghbredMortgage.com
depesited by the buyer into an escrow account, to
be used by the bank to pay the next year's taxes and
insurance.
HOULIHANLAWRENCE.COM
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
MAKING AN OFFER
TO THE SELLER
Once you have found a home you wish to purchase, the next stepis to presentan ofer to the
seller.Your agent willassist you inmaking the ofer, which willbe delivered to theseller's
agent and then to the Negotiations
seller. will continue untilyou and theseller reach an
agreement on the ofer.
TERMS OF AN OFFER
Down Payment - The amount of cash you are prepared to invest in the purchase.
Contingencies - The two types of contingencies are stipulations the
primary regarding
mortgage and the home inspections. The mortgage commitment contingency will be
satisfied once you have a mortgage commitment in place.Other contingencies include
the completion of satisfactory home inspections (e.g.,engineering, termite), appraisal,
or signed contract.
Personal - Items that are not fixtures not be included in the purchase.
Property may
The Date - The date upon which you would like totake the titleto the property.
Closing
about"
This isoften an "on or date, mutually agreed to by the buyer and seller.
A STEP-BY-STEP PROCESS FROM OFFER TO CONTRACT SIGNING
Taking the following steps can make your ofer more appealing to theseller,and enhance
your status as a preferred buyer.
Obtain a pre-approval from Thoroughbred Mortgage for a loan before making the offer.
1. Perform inspections.
2. Contact a realestateattorney to represent you, thereby facilitatingcontract execution.
3. Verify important information such as the property taxes, square footage and certificate
of occupancy prior to signing contracts. Your Houlihan Lawrence agent can refer
you to the proper sources for this information.
4. Sign contracts in a timely manner.
AN ACCEPTABLE OFFER
An acceptable offerdoes not preclude other potential buyers from making another offer
on the house. The possibility stillexists that another buyer will make a higher offer
and/or offer better terms. All offers must be presented to the seller regardless of the
stage of the sellingprocess; therefore, buyers are urged to conduct alldesired property
inspections as quickly as possible and to enter into a fully executed contract. Buyers
and sellersare legally bound to one another once allcontingencies have been satisfied.
An acceptable offer isnot binding to either party until the contracts have been signed
by both parties and delivered back to the buyer's attorney.
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
THE INSPECTION PROCESS
It is very important to cüñduct a thorough inspection of your prospective home. Conduct liespecticits as soon as possible
once your offer has been accepted. Ifyou are purchasiiëg a home that requires sigmficant renovations, multiple inspections
may be needed to assess the current condition of the property. Schedule the inspections when you can be present. This will
allow you to become familiar with your prospective new home, évalüüte its present condition, and decide what repairs will
be needed. As ofDecember 31, 2005, the Home Inspection Professional Licensing Act took effect. Real estate licEñsEEs may
ONLY recomméñd licéñsed home iñspéctors. You may access the fc:lowiñg website for a list of licensed home iñspectöi s:
www.dos.state.ny.us.
RECOMMENDE D TESTS FOR THE INSPECTION
Asbestos - This mineral fiber was once used for insulation and fire protection. Asbestos fibers released into the air may
pose a health hazard. Acbestes in good condition, such as that in ceiling tiles, may not need to be removed, but instead
covered and sealed. Any work performed on asbestes must be done by a properly trained and licensed contractor.
Carbon Monoxide - This and tasteless gas can be fatal if inlidled at sufficicut levels. Carbon manexide
odorless, colorless,
in the home is pródüced from fuel-burning suürces such as gas, oil, or wood-fired heating systems. Each home is
required by law to have at least one operable carbon monoxide detector on the lowest bedroom level. Compli&nce will
be affirmed at the closing.
- This inspection will assess the major structural clements of the out-t and as well
Eñgiñééring home, --ildings, pool,
as the heating, air conditioning, pluding, and electrical systems.
FEMA Flood Zone - The Federal Eª=oª Management has generated maps based on flood risk
r,cucy Agency (FEMA)
assessments. Information on your ;---4- local maps and is available at www.needsmst.gov.
area, =g rates,
Lead Paint - Paint chips or dust from lead paint are toxic and can cause lead when inlidled
deteriorating poisoning
or ingested. If the home was built before 1978, the seller must complete a lead paint disclosure form, which will be
signed by the buyer &ckac---ledging receipt of the disclosure. A lead disclosure beeMet endorsed by the EPA will also
be provided to both parties.
HOULIHANLAWRENCE.COM
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
Mold - The preseiice of mold could be considered a material and therefore
potentially property condition, any
knewledge about mold should be disclosed by a property seller to a potential buyer. Effective January 1, 2016, New York
State is requiring licenses for mold assessers and mold remediators. A mold assessor can test for mold and prepare
a remediation plan, whereas the remediator executes remediation. A company or person cannot be licensed as both
an assessor and remediator and the two cemp?aies cannot be related in any way. Starting Jañüary 1, 2016, real estate
agents can only recommeini licensed contractors.
Oil Tank - Oil tanks of 1,000 gelens or more must be tested for leakage. Be sure to ask ifthe seller has purchased tank
insurance. It is advisable to test all buried oil tanks.
Pest and Termite - An inspection will be performed for the presêñce of all forms of wood-destructive insects in the
home and outhniMing. The inspection report should contain a certificate of non-infestation, or iñforniation detailing
existing damage and recommended treatment.
Radon - This odorless and radicactive gas can into a house from soil and rock below the home's
invisible, slightly seep
feüñdation. PrGlenge d exposure to high levels of radon can pose a health hazard. In most cases, if radon is detected,
steps can be taken to remedy the problem.
Septic - Avisual inspection of the septic system area or dye test will often be performed. Since septic systems require
routine maintenance, be sure to find out when the system was last pumped out and its condition at that time.
SmokeDétecter - Confirmation of smoke detectors and ecmpliance with local regulations will be provided
functioning
by the seller.
Art::::f ;PoolEnclosures- to New York State an êñclosure shall be previded around outdeer
Acc0rdiñg law, swimming
pools which surround the pool and accessory equipment only. Your attorney can furnish you with the particulars.
Water - A siialysis will test the of the water. This is important for homes that have well
laboratory quality especially
water. Another test may be performed to determine the capacity of the well. Westchester County requires sellers to
test private wells and to present the results to buyers. There are specific term requiremêñts for private well testing
in Dutchess County.
HOULIHANLAWRENCE.COM
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FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018
CONTRACT OF SALE
Contract negotiations begin once the sellerhas accepted your offer.Alert your attorney to expect
the contracts.At this time, the inspections should be complete or near completion.
A STEP-BY-STEP PROCESS
1. The listingbroker will send a memorandum ofthe accepted offer to the the
seller, seller's
attorney, your attorney, and your agent.
2. The seller'sattorney will prepare the contract of saleand
Preview
FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 EXHIBIT 86 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 HOULIHAN LAWRENCE SINCE 1888 BUYER'S GUIDE FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 HOULlHAN LAWRENCE SINCE 1888 THE FUTURE OF REAL ESTATE SINCE 1888 At Houlihan Lawrence, we pride ourselves in being at the forefront of Real Estate innevation. As the area's longstanding market leader, we are defined by an unmatched dedication to our clients and our ec-----Mies. We are a compa-f of more than 1,300 agents united around a co,,sisso,1belief: that buying or selling a home is more than a Real Estate transaction. It's a unique opportunity to help indiv duals realize their dreams and fulfill personal aspirations. It's the special eccasión when business partners becerñê neighbors. With service, quality, and innovation at our core, we are the area's largest independently owned business with 30 offices serving Westchester, Fairfield, Putnam, and Dutchess counties. Our extensive local netwórk provides an exclusive source of buyers. Our deep- rooted dedication to the co111111ussities we serve shines through in everything we do and solidifies our position as the local expert. In leveraging our global cónnections and other select international firms, our reach 6-cpands from New York City's northern suburbs and the Tri-State Area to six continents and 56 countries. We connect the right buyers to the right homes, whether they are around the corner or across the globe. Being the market leader means never standing still. We continue to harness our success by always looking ahead for new eppertüñities and for better ways to serve our customers. HOULIHANLAWRENCE.COM 1 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 TABLE OF CONTENTS Here to Yon... ............3 Contract ofSale 14 Help Factors to Consider 4 Tharüüg|à rsd Title Servican 15 Disclosures to f'nnsider 5 The Process 16 Closing Buyers' Home Financing Closing Costs and Loan Pre-Approval 6 and ... .....-18 Su:::::.-f Buyers' Mortgügé Financing and Costs.....9 Diagram of a House 21 an Offer to the Seller.... 10 ofTerms 22 Making Glossary The Inspection Process ....12 OurServices ................24 HOULIHANLAWRENCE.COM 2 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 HOULIHAN LAWRENCE HERE TO HELP YOU THOROUGH MARKET KNOWLEDGE Our netwerk of over 1,300 sales professiciials has thorough kiiGwledge of the real estate markets of New York City's northern suburbs. These agents preview liandreds of homes in order to share their kil6wledge of local iiiveiitory and value to match your criteria. MEDIA RESOURCES Our agents can show you homes that are on the Internet, on the Multiple Listing Service (MLS) website or advei tised in print publications. In addition, they can help you keep up-to-date with new listings and price reductions with our exclusive Home Finder. Our "InCrowd" cc-- proprietary network allows our agents to te with one another in real time, giving our buyers an edge with homes that are coilillig to market. GLOBAL RELOCATION Our Global Betsiness Devé|op;iic;it Team is internationally recGgiii-ed for service excellerice and expertise in assisting buyers tlireüghout our region and wlicrever their real estate needs take them. PERSONALIZE D ATTENTION Our agents pride themselves on previdilig a unique hemchuying expcrictice to meet your personal goals. RE FERRAL ABILITIES Our agents can assist you with referrals for attorneys, mortgage consultants, title services, and licensed home inspectors. HOULIHANLAWRENCE.COM 3 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 FACTORS TO CONSIDER WHEN LOOKING FOR A HOME • Select the area that you prefer suburban or rural). (e.g., • Focus on a particular or geógraphic location. city, town, • Assess common etc. prüperty taxes, charges, • Decide whether or not and to public transportation is important arcil:L·ility proximity to you. • CGñsider which architectural style you prefer (e.g., Colonial,Geergian, Contemporary, Ranch or Victorian). • Determine the number of bedracins and baths that you reqüire. HOULIHANLAWRENCE.COM 4 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 DISCLOSURES TO CONSIDER The following are mandated by Federal, New York State or local municipal law. Please consult your attorney for a complete listoflaws. LEAD PAINT Required for dwellings builtbefore 1978. First you willreceive a booklet: "Protect Your Home," Family From Lead in Your then you will receive disclosure and other applicable documents from the sellerbefore contracts are signed, preferably during negotiations. Receipt of thisinformation is acknowledged by signing and dating the appropriate form. PROPERTY CONDITION DISCLOSURE Required for all residential dwellings. The purchaser acknowledges receipt of the Property" "Rights of Purchaser of Residential Real by signing and dating the appropriate form. The purchaser receives information from the seller before the contract is signed. If information is notprovided, the purchaser must receive $500 credit at closing. AFFILIATED BUSINESS DISCLOSURE Required for purchasers working with Houlihan Lawrence. Purchasers acknowledge receipt of information by signing and dating the appropriate form. FEMA FLOOD ZONES Listing agents ask sellers if the property is in a designated flood zone and convey information to the agent working with buyers. This information is conveyed to prospective buyers once an active interest isshown in the property. Ifin doubt, Federal Emergency Management Agency (FEMA) maps are viewed. Please note: the FEMAmaps show areas subject to the highest risk of flooding.They do not, however, identify smaller riskzones such as small streams, risks in rural areas or floodsthat exceed 100 year flood levels or storm drainage problems. Additional information and flood maps are available atwww.fema.gov/business/nfip/mscjumppage.shtm. MEGAN'S LAW For information on Megan's Law and the presence of convicted pedophiles in communities, visitthe NY Attorney General's website: www.criminaljustice.state.ny.us or contact the New York State Division of Criminal Justice Services at 800-262-3257. AGENCY DISCLOSURE LAW As a homebuyer, you have choices regarding the service and representation you receive when working with an agent. Your Houlihan Lawrence agent will present you with the required New York State Agency Disclosure document and answer any questions that you might have. Receipt of thisinformation isacknowledged by signing and dating the appropriate form. HOULIHANLAWRENCE.COM 5 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 HOME FINANCING AND LOAN PRE-APPROVAL In today'scompetitive real estate market, homebuyers are obtaining a pre-approval for mortgages prior to purchasing a home. Thoroughbred Mortgage loan officersare readily available to assistyou in the process of obtaining pre-approval from a lending institution. ADVANTAGES OF LOAN PRE-APPROVAL • Verifies the purchase price you can afford. • Prepares you to make an offeron the you wish to purchase. property • Expedites the process. buying • Indicates that you are and prepared to purchase a home. credit-worthy financially REQUIREMENTS FOR PRE-APPROVAL The following documents are required by the mortgage representative: • W-2 forms and federal tax returns from the past two years. • stubs for the most recent 30 days. Pay • Two months of financial asset statements. • Credit Report. FINANCIAL INFORMATION REVIEWED IN THE PRE-APPROVAL PROCESS Assets - to sufficientfunds needed to close the loan. verify Credit - to evaluate your credit based on the size of the loan. standing Income - to thatyou can afford mortgage payments to your income. certify according LOAN PRE-APPROVAL Loan Commitment - A written guarantee from a lender to provide to a specifiedamount. financing up This type of pre-approval involves a creditcheck and verification of assetsand income. Then, a review of allproperty related information (appraisal, title,insurance and contract) by the underwriter will be required to finalize the loan. Ifyou have any questions regarding the pre-approval process or if you would liketo obtain a pre-approved loan, a Thoroughbred Mortgage loan officercan assist you. HOULIHANLAWRENCE.COM 6 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 Additional Benefits: CONSIDER A THOROUGHBRED MORTGAGE PRE-APPROVAL You'll instantly gain a distinct advantage over other house hunters. When you meet with sellers and real estate agents, your pre-apprGVcd status tells them that you've got the financial backing to make a deal. It's a position of strength that allows you to negotiate more - and competitively. confidently PRODUCT VARIETY Apply your pre-approval to almost any type of home loan. Whatever your situation, you'll be expertly matched with a loan that makes sense for you. PRE-APPROVAL You can close in less time than you ever irwagined. With your pre-approval, you're armed with the reassuring knoviledge that serseene's standing with you to get the deal done. Our loan officers are committed to meling your home buying experieñce a happy one. Whether it's your first time or your tenth, we'll do everything that we possibly can to "Yes." say, HOULIHANLAWRENCE.COM 7 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 MORTGAGE BUYERS' FINANCING AND COSTS TIPS TO CONSIDER WHEN LOAN SHOPPING ADDITIONAL MORTGAGE-RELATED COSTS Make ita Point to Ask about Points The fa"c ;ing costs may vary according to martgags amount: When responding to an ad or calling a lender to inquire about rates, be sure to check if the quoted Apprais al Fee - A fee for appraising the value of interest rate reflects payment of points. Many loan the property. programs allow you to receive a discounted interest Lender's Morneys Fee - A fee paid to the lender's rate by paying point or origination fees. One point attorney for reviewing the title to the property, equals 1% of the loan amount, and the more points resolving any title problems, coordinating the you can or wish to pay, the more you can discount . closing, typing the bank papers, attending the your rate. Paying points is not a s oquis o1ssont; it's closing, dispersing the funds at closing, and ensuring just an option lenders offer to accómmodate the the documents are accurate and properly reccidad. immediate or long-term monthly payment có1icerils of home mortgage customers. Credit Report Fee - A fee for investigating the BUYERS' borrower's credit rating. COSTS II°ª¹EGWhªrs Insurance - An insurance The costs to mortgage Policy policy following may vary according listing the lender as the loss payee. The buyer is required to bring a paid receipt for this policy to the Interim Interest - Interest accrued on the mortgage closing. Cost will vary accerdilig to type of cóverage for the ilumber of days remaining in the month of and insurance company. the closing. Mortgage Fee - A fee paid to the Recording county Mansion Tax - All home sales of $1,000,000 and over clerk's office for mortgage documeiitation. are subject to this NY State tax of 1% of the entire Mortgage Title Insurance - A one-time charge to the purchase price. buyer for insurance that guarantees compensation if, Mortgage Tax - A NY State tax between and 1.05% for the title should prove to be defective any reason, 1.55% of the total mortgage minus the $30 residclitial if the previóüs owner had a tax lien on the (e.g., fee exemption. property). Two types of insurance include required coverage of the lender and recommerided coverage Origination Fee - A fee paid at the time the mortgage of the buyer. application is processed. - Points Each point is a fee equal to 1% of the mortgage amount. Mortgage information provided Thoroughbrêà by Private Mortgage Insurance (PMI) - A premium paid by the buyer to insure the lender if the buyer is borrowing more than 80% of the appraised value of the home. THOROUGHBRED MORTGAGE Tax and Insurance Escrows - Lender required funds ThüróüghbredMortgage.com depesited by the buyer into an escrow account, to be used by the bank to pay the next year's taxes and insurance. HOULIHANLAWRENCE.COM 9 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 MAKING AN OFFER TO THE SELLER Once you have found a home you wish to purchase, the next stepis to presentan ofer to the seller.Your agent willassist you inmaking the ofer, which willbe delivered to theseller's agent and then to the Negotiations seller. will continue untilyou and theseller reach an agreement on the ofer. TERMS OF AN OFFER Down Payment - The amount of cash you are prepared to invest in the purchase. Contingencies - The two types of contingencies are stipulations the primary regarding mortgage and the home inspections. The mortgage commitment contingency will be satisfied once you have a mortgage commitment in place.Other contingencies include the completion of satisfactory home inspections (e.g.,engineering, termite), appraisal, or signed contract. Personal - Items that are not fixtures not be included in the purchase. Property may The Date - The date upon which you would like totake the titleto the property. Closing about" This isoften an "on or date, mutually agreed to by the buyer and seller. A STEP-BY-STEP PROCESS FROM OFFER TO CONTRACT SIGNING Taking the following steps can make your ofer more appealing to theseller,and enhance your status as a preferred buyer. Obtain a pre-approval from Thoroughbred Mortgage for a loan before making the offer. 1. Perform inspections. 2. Contact a realestateattorney to represent you, thereby facilitatingcontract execution. 3. Verify important information such as the property taxes, square footage and certificate of occupancy prior to signing contracts. Your Houlihan Lawrence agent can refer you to the proper sources for this information. 4. Sign contracts in a timely manner. AN ACCEPTABLE OFFER An acceptable offerdoes not preclude other potential buyers from making another offer on the house. The possibility stillexists that another buyer will make a higher offer and/or offer better terms. All offers must be presented to the seller regardless of the stage of the sellingprocess; therefore, buyers are urged to conduct alldesired property inspections as quickly as possible and to enter into a fully executed contract. Buyers and sellersare legally bound to one another once allcontingencies have been satisfied. An acceptable offer isnot binding to either party until the contracts have been signed by both parties and delivered back to the buyer's attorney. HOULIHANLAWRENCE.COM 10 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 j FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 THE INSPECTION PROCESS It is very important to cüñduct a thorough inspection of your prospective home. Conduct liespecticits as soon as possible once your offer has been accepted. Ifyou are purchasiiëg a home that requires sigmficant renovations, multiple inspections may be needed to assess the current condition of the property. Schedule the inspections when you can be present. This will allow you to become familiar with your prospective new home, évalüüte its present condition, and decide what repairs will be needed. As ofDecember 31, 2005, the Home Inspection Professional Licensing Act took effect. Real estate licEñsEEs may ONLY recomméñd licéñsed home iñspéctors. You may access the fc:lowiñg website for a list of licensed home iñspectöi s: www.dos.state.ny.us. RECOMMENDE D TESTS FOR THE INSPECTION Asbestos - This mineral fiber was once used for insulation and fire protection. Asbestos fibers released into the air may pose a health hazard. Acbestes in good condition, such as that in ceiling tiles, may not need to be removed, but instead covered and sealed. Any work performed on asbestes must be done by a properly trained and licensed contractor. Carbon Monoxide - This and tasteless gas can be fatal if inlidled at sufficicut levels. Carbon manexide odorless, colorless, in the home is pródüced from fuel-burning suürces such as gas, oil, or wood-fired heating systems. Each home is required by law to have at least one operable carbon monoxide detector on the lowest bedroom level. Compli&nce will be affirmed at the closing. - This inspection will assess the major structural clements of the out-t and as well Eñgiñééring home, --ildings, pool, as the heating, air conditioning, pluding, and electrical systems. FEMA Flood Zone - The Federal Eª=oª Management has generated maps based on flood risk r,cucy Agency (FEMA) assessments. Information on your ;---4- local maps and is available at www.needsmst.gov. area, =g rates, Lead Paint - Paint chips or dust from lead paint are toxic and can cause lead when inlidled deteriorating poisoning or ingested. If the home was built before 1978, the seller must complete a lead paint disclosure form, which will be signed by the buyer &ckac---ledging receipt of the disclosure. A lead disclosure beeMet endorsed by the EPA will also be provided to both parties. HOULIHANLAWRENCE.COM 12 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 Mold - The preseiice of mold could be considered a material and therefore potentially property condition, any knewledge about mold should be disclosed by a property seller to a potential buyer. Effective January 1, 2016, New York State is requiring licenses for mold assessers and mold remediators. A mold assessor can test for mold and prepare a remediation plan, whereas the remediator executes remediation. A company or person cannot be licensed as both an assessor and remediator and the two cemp?aies cannot be related in any way. Starting Jañüary 1, 2016, real estate agents can only recommeini licensed contractors. Oil Tank - Oil tanks of 1,000 gelens or more must be tested for leakage. Be sure to ask ifthe seller has purchased tank insurance. It is advisable to test all buried oil tanks. Pest and Termite - An inspection will be performed for the presêñce of all forms of wood-destructive insects in the home and outhniMing. The inspection report should contain a certificate of non-infestation, or iñforniation detailing existing damage and recommended treatment. Radon - This odorless and radicactive gas can into a house from soil and rock below the home's invisible, slightly seep feüñdation. PrGlenge d exposure to high levels of radon can pose a health hazard. In most cases, if radon is detected, steps can be taken to remedy the problem. Septic - Avisual inspection of the septic system area or dye test will often be performed. Since septic systems require routine maintenance, be sure to find out when the system was last pumped out and its condition at that time. SmokeDétecter - Confirmation of smoke detectors and ecmpliance with local regulations will be provided functioning by the seller. Art::::f ;PoolEnclosures- to New York State an êñclosure shall be previded around outdeer Acc0rdiñg law, swimming pools which surround the pool and accessory equipment only. Your attorney can furnish you with the particulars. Water - A siialysis will test the of the water. This is important for homes that have well laboratory quality especially water. Another test may be performed to determine the capacity of the well. Westchester County requires sellers to test private wells and to present the results to buyers. There are specific term requiremêñts for private well testing in Dutchess County. HOULIHANLAWRENCE.COM 13 FILED: WESTCHESTER COUNTY CLERK 10/01/2018 05:13 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 269 RECEIVED NYSCEF: 10/01/2018 CONTRACT OF SALE Contract negotiations begin once the sellerhas accepted your offer.Alert your attorney to expect the contracts.At this time, the inspections should be complete or near completion. A STEP-BY-STEP PROCESS 1. The listingbroker will send a memorandum ofthe accepted offer to the the seller, seller's attorney, your attorney, and your agent. 2. The seller'sattorney will prepare the contract of saleand