From The New York Times: How to Buy a House

From The New York Times: How to Buy a House

Buying a home, especially in New York City, can often seem like a daunting prospect, and not just because of the price tag! This article from the New York Times Real Estate page might help answer some of your questions about just where to start if you are looking to purchase, and includes some helpful tidbits of advice on finding a home that works for you. After all, the first few steps can sometimes be the hardest.

Once you have taken those steps, however, remember that your Real Estate team is here to help you the rest of the way. Keep in touch with your attorney, banker, and broker, and don’t be afraid to ask questions.

From the NYTimes: Vetting an Apartment

An article was published recently in the New York Times which may be helpful to new purchasers. It outlines the process of “Due Diligence,” or research into a prospective property. This is meant to uncover any potential red flags and confirm that the property is in good physical and financial condition before the contract is finalized.

We often field questions about this subject, and with good reason: once a purchaser has selected a Real Estate attorney, they will begin collecting due diligence, and will be an important resource for any questions about the property. Remember to keep in contact with your attorney throughout this process, and let them know as early as possible if you have any concerns about the property.

FinCEN Extends Geographic Targeting Orders

The Financial Crimes Enforcement Network (FinCEN), a division of the US Treasury Department, has announced that it is again extending the Geographic Targeting Order which first went into effect in 2016. The update includes some important changes to the existing requirements. Most notably, while purchases made by wire transfer were once exempt, such transactions will now need to be reported.

The order, which is intended to combat money laundering schemes by identifying individuals behind companies and other entities purchasing real estate, is now effective from the 22nd of September, 2017, to March 20, 2018, unless it is further extended in the future.

For more details, please see the attached link to the FinCEN website.

From the NY Times: A Guide for First-Time Buyers

The New York Times recently published this handy guide for prospective purchasers who are new to the Real Estate process. It contains some important background, but for more detailed information, we of course recommend keeping in touch with your Real Estate attorney, broker, and mortgage banker.

From the NY Times: A Quick Guide to Mortgages and Financing

The purchase of a home, for most of us, will likely involve a massive commitment of financial resources. The prospect of taking out a mortgage, with its complex process and years of future payments, can be daunting. To this end, the New York Times recently released a series of helpful articles aimed at helping potential first time buyers understand whether taking out a mortgage is advisable,  as well as some of what to expect throughout the process. We thought that we might share those with you here:

Can I Afford to Buy a Home?

How Do I Get a Mortgage?

What Kind of Mortgage Should I Get?

How Do I Get a Good Interest Rate?

How Do Down Payments Work?

What Are Closing Costs?

Of course, there are bound to be further questions down the line. Throughout the process, don’t be afraid to communicate your questions and concerns to your mortgage banker and real estate team.

WHFirm Attorneys Teach CE Course at TitleVest

Congratulations to all of the brokers who recently completed a 3.75 credit hour course on the subject of Real Estate Due Diligence. The course, which was taught by Firm Partner Jack Harari and Associate Caroline Malapero, was presented in cooperation with TitleVest, Inc., and took place at their corporate offices on February 28th. We appreciate all who attended, as their input helps us to gauge the educational needs of the Real Estate community. We hope to be able to give many more similar courses in the future.

From the New York Times: Lead Paint and Illegal Sublets

In the attached article, the New York Times answers common questions that prospective purchasers may have. The first part discusses lead paint, which is a common feature of many older apartments. Though there are associated hazards, especially in houses with small children, there also ways that those risks can be easily recognized and mitigated.

In the second part, the article discusses the laws and ethics of renting out apartments short-term through sharing services such as AirBnB, which in some cases can be illegal. Prospective users of these services should always be aware of local laws concerning apartment use, as well as their building’s policy on temporary sublets, before hosting.

Details such as these can sometimes appear daunting to prospective purchasers, but remember that your real estate team is here to help–keeping actively involved during the due diligence stage of any purchase is the first step to staying educated about the rules and risks of purchasing a particular condo or coop.

From the New York Times: Coop Q & A

The huge presence of cooperative apartments in New York City is one of the many things that makes the local Real Estate market truly unique. However, the complex nature of coop ownership can sometimes be daunting to would-be purchasers–or even present owners. Since each coop is in essence its own independent corporation, individual buildings can distribute communal responsibilities quite differently.

This article, from the New York Times, explores the relationship between a coop board and the rest of its residents. First, how much control do residents who are not on their coop board have over renovations and other potentially costly decisions? And secondly, how can a coop determine who serves on the board and who does not–especially if no one wants to?

It is always important for a prospective purchaser to have a good sense of the workings of the building into which they hope to purchase, so don’t be afraid to ask questions and discuss any due diligence with your Real Estate Broker and Attorney.

New Change to NY Mortgage Tax Law Takes Effect

On October 1st, a change in New York Mortgage Tax law went into effect. Mortgages guaranteed by or participated in by an IDA, or Industrial Development Agency, are no longer exempt from all mortgage taxes, but will now have to pay New York’s special additional mortgage tax.

The special additional mortgage tax applies to New York City, as well as all other counties in New York which make up metropolitan commuter transportation districts. Outside of these counties, however, the tax is not applicable. Depending on the Transportation district, the tax consists of .25-.3 percent of the mortgage amount. You can find the information promulgated by the NYS Department of Taxation and Finance here.