Buying property in New York City is one of the most significant financial decisions you will ever make. Whether you are a first-time buyer or a seasoned investor, understanding the process and having the right legal counsel is essential to protecting your investment.
Why You Need a Real Estate Attorney in New York
Unlike many other states, New York requires that both the buyer and seller have their own attorney in a real estate transaction. This is not just a formality — your attorney plays a critical role at every stage of the process:
- Contract review and negotiation — your attorney reviews the purchase contract, negotiates terms, and ensures your interests are protected
- Due diligence — conducting title searches, reviewing building financials (for co-ops and condos), and identifying potential issues
- Closing representation — attending the closing to review and execute documents, ensure proper disbursement of funds, and address any last-minute issues
Co-ops vs. Condos: Understanding the Difference
New York City’s housing market includes both cooperatives (co-ops) and condominiums, and understanding the difference is important:
Condominiums
- You own your individual unit as real property
- You receive a deed and can obtain title insurance
- Typically fewer restrictions on subletting, financing, and renovation
- Often newer construction with modern amenities
Cooperatives (Co-ops)
- You purchase shares in a corporation that owns the building
- You receive a proprietary lease granting the right to occupy your unit
- Board approval is typically required — this can be a rigorous process
- May have restrictions on subletting, financing, and alterations
- Often offer lower per-square-foot prices than comparable condos
Understanding Closing Costs
Buyers in New York City should budget for closing costs that typically range from 2% to 5% of the purchase price. Common costs include:
- Attorney fees — for legal representation throughout the transaction
- Title insurance — protects against title defects (condo and house purchases)
- Mansion tax — 1% to 3.9% for properties priced at $1 million or above
- Mortgage recording tax — approximately 1.8% to 1.925% of the loan amount
- Bank fees — application fees, appraisal fees, and other lender charges
- Adjustments — prorated property taxes, common charges, or maintenance fees
Tips for a Smooth Transaction
- Get pre-approved for financing before you start your search — this strengthens your position and helps you know your budget
- Hire an experienced real estate attorney early in the process — ideally before you sign anything
- Be prepared for the board process if buying a co-op — have your financial documents organized and your application complete
- Conduct thorough due diligence — review building financials, minutes of board meetings, and any pending assessments or litigation
- Stay in close communication with your attorney, broker, and lender throughout the process
How Yazdi Law Can Help
At Yazdi Law, PLLC, our real estate attorneys guide buyers through every step of the transaction process. From contract negotiation to closing, we ensure your interests are protected and your transaction proceeds smoothly. Whether you are buying a co-op, condo, or house, we have the experience and knowledge to help. Contact us today to discuss your real estate needs.
