INVESTOR CHECKLIST FOR BUYING
PROPERTY IN NEW YORK STATE
- Complete Contract for purchase and sale, initialing all
pages and signing where indicated, and submit to your real
estate agent or property owner with earnest money deposit
- Select buyer’s attorney
and determine his fee.
- When contract is fully executed (negotiated and signed
by both buyer and seller) submit to
- Your buyer’s attorney who needs to approve contract
as does seller’s attorney
- Your bank or mortgage broker to start financing process
- Your insurance agent to determine
cost of coverage (actual value is cheaper than replacement
coverage). You will usually pre-pay 1 year’s coverage. Agent must be notified
of closing date by buyer’s attorney or you to submit
the insurance binder.
- Communicate with East/West, your realtor, your attorney,
your banker and your insurance agent who the other team
members are and their contact information.
- Financing: Get loan commitment
within 20 days. Get rate, term, down payment, points and
closing costs negotiated. Follow
up with banker on a weekly basis to ensure progress is being
made. Determine if you can close with Power of Attorney
or by overnighting loan documents to you to be signed and
notorized? Get POA notorized and send to your buyer’s
attorney. Be aware of rate lock deadlines. Follow up with
- Due diligence: You have
20 days to do any property inspections or tests, and to
determine rent roll, tax and expenses. For taxes in Ononodaga
County go to www.ongov.net.
Verify the rent roll in writing and I suggest that you or
your property manager talk to each one prior to closing.
Follow up with East/West Properties to get free walk through
by Bob’s contractor. If you want a licensed property
inspection, do it within 20 days. If you want to have problems
corrected or the contract renegotiated or if you want out
of the contract due to the due diligence, you must make the
decision within 20 days. If you opt out of the deal
after 20 days, you risk losing your deposit. Your financing
contingency is still in effect.
- Follow up with your buyer’s attorney and your banker
on a regular basis to encourage the process to move forward. It
is your and your attorney’s responsibility to
bug the seller’s attorney to complete the title work
and to bug the banker’s attorney to give you the “clear
to close” With luck and follow through we will close
in 45-60 days.
- Select a property manager, determine
costs and communicate on a regular basis. Don’t
get talked in to a contract where you lose control of your
money unless you are comfortable with it.
- Get power and water turned on in your name when appropriate.
- Buy another property.