Term
| Is there a standardized statewide binder or sales contract form? |
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Definition
No, however there are standardized forms available on a local level from:
local bar association
local board of REALTORS
local multiple listing service |
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Term
| How do you determine when to use a residential form or a commercial form |
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Definition
Use residential form for properties with 4 or fewer units.
Use commercial forms for residential properties of 5 or more units, retail, business properties, and large tracts of land |
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Term
| How is a certificate of occupancy generated |
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Definition
| A COI is generated when a building inspector inspects the property and issues a report. |
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Term
| Under what three scenarios is a certificate of occupancy needed. |
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Definition
lenders usually require a COI on a resale of a single family residential property.
New construction and commercial income property always require a COI |
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Term
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Definition
| the direction and distance of a line forming the boundary of the property |
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Term
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Definition
| the physical features that define the boundary of the land |
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Term
| Besides legal address and metes and bounds, what are two other property description systems |
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Definition
Lot on a filed map (filed with county)
Tax maps |
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Term
| Describe the downstate process of contract preparation |
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Definition
| Buyers agent prepares binder, purchase offer, memorandum of sale, or receipt of sale that specifies essential terms of transaction. This is forwarded to sellers attorney, who prepares the actual contract |
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Term
| Describe the upstate process of contract preparation |
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Definition
| Buyers agent completes pre-printed purchase offer or contract of sale, subject to attorney review. Contract should be written in a way where it is not binding until attorneys review and possibly revise it. All parties must initial any revisions |
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Term
| When writing a mortgage contingency in an offer, how long does licensees give a buyer to get a loan commitment |
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Definition
| 45-60 days from date contract is signed |
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Term
| Does the buyer receive the earnest money back if they are unable to secure a loan |
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Definition
| The buyer gets the earnest money back only if they acted in good faith. If they did not act in good faith (i.e. made no effort to get loan or tried to get a loan for far greater than what they qualified for) the seller may keep the earnest money. |
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Term
| What is the usual percentage that the buyer puts down in escrow |
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Definition
| 10% - although this is negotiable |
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Term
| Who usually holds down payment |
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Definition
Down payment is held by listing agent, buyers broker, or sellers attorney. Brokerages must put money in a separate escrow account used only for trust funds.
Downstate, usually the sellers attorney holds down payment. This is advantageous because it decreases broker liability and the NY Lawyers Fund for Client Protection reimburses losses caused by dishonest lawyers up to 300,000 per client loss. Lawyers must set up separate escrow account or deposit in their Interest on Lawyer Accounts |
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Term
| Who signs the contract first? |
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Definition
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Term
| Are original signatures on contracts necessary? |
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Definition
| Contracts can be signed digitally, but in the event of a lawsuit (and requirements by most title companies) each party to the transaction should be provided with one original executed copy. However, a clause can be added stating that fax copies are deemed original . |
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Term
| sign contract by mail procedures |
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Definition
sellers atty faxes contract to buyers atty
buyer signs and mails several copies of contract with original signature to sellers attorney and sellers sign all copies |
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Term
| what parties should have a copy of the contract |
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Definition
| sellers atty, sellers broker, buyers atty, buyers broker, lender, the principals |
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Term
| who approves fill in the blank forms |
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Definition
| joint committee of the bar association and the board of REALTORS |
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