Understanding Contracts: the Statute of Frauds
Contracts are at the heart of buying and selling real estate. This is because, by law, no real property can legally change hands (with the exception of a lease lasting less than one year) except through a written contract. This law is called the “Statute of Frauds.”
In order to be legally binding, a contract must contain certain basic information. First, it must explicitly name the parties involved in the deal. Failure to do this may make the contract impossible to enforce. Secondly, the specific boundaries of the subject property must be listed accurately, and with enough exactitude as to be easily identified. “By the long rock wall with a big oak tree at the north end,” unfortunately isn’t sufficient for the contract to be binding. Third, the purchase price for the property in question must also be listed and decided upon before the contract is signed, not after. Depending on the contract, it may also need to include such facts as closing date, the terms of the mortgage (if applicable), and information about the title of the property (amongst others).
Provided that a contract has all of the necessary information, the form that the contract takes contains a great deal of leeway. The contract could be many documents pieced together, some terms legibly scribbled on a napkin, or even an email chain (provided, of course, that they are sufficiently connected and that the required signatures can be proven genuine—a subject of no small amount of controversy). There is even one exception to the Statute of Frauds: in some cases an oral recitation of the contract may pass muster, provided that is obvious that all parties’ actions explicitly refer to the deal.
Hopefully, this tidbit of legal theory will help put the contract process into context. With any more specific questions, we would always recommend contacting a legal professional.
NYTimes: The Stuff We Leave Behind
What happens when sellers leave behind unwanted possessions after a closing? Whether an armoire or an armadillo, sometimes old property is left for the new homeowner to deal with, despite promises and guarantees to the contrary. In most New York contracts of sale, there will be specific language that attempts to grapple with what personal property will be taken or left behind. The attached article from the New York Times, entitled “You’re Taking that with You, Right?” approaches this question with humor, including anecdotes of situations both horrifying and heartwarming.
NYC Real Estate Attorney’s Closing Report: May 2016
Just a few of our recent closings. If you are also looking to buy or sell at these property addresses, you might want to give us a call.
| Property | Value | Transaction |
| 845 West 181st Street, NY, NY | $286,000 | Coop Refinance |
| 900 West 19th Street, NY, NY | $1,275,000 | Coop Purchase |
| 234 East 23rd Street, NY, NY | $1,130,000 | Condo Purchase |
| 919 Mayfield Road, Woodmere, NY | $730,000 | House Purchase |
| 29 Tiffany Place, BK, NY | $2,440,000 | Condo Sale |
| 10 Tanner’s Neck Lane, Westhampton, NY | $3,265,000 | House Sale |
| 415 Main Street, NY, NY | $1,175,000 | Condo Purchase |
| 211 East 35th Street, NY, NY | $306,000 | Coop Purchase |
| 93 Worth Street, NY, NY | $1,100,000 | Condo Purchase |
| 195 Prospect Place, BK, NY | $465,000 | Coop Purchase |
Jack Harari Guest Speaker at Google
WHFirm’s own Jack Harari and Caroline Malapero were both guest speakers at a recent event held at Google’s New York office, part of a series of lectures hosted by broker Roger Ma, of Charles Rutenberg LLC. Called Buying 101, the series is a resource for employees, many of whom may be new to New York City and its unique Real Estate market.
NY Times Shares Tips for First-Time Buyers
The New York Times recently published the following article, which should prove helpful to anyone thinking of purchasing a property in New York City. Among other tidbits, the article includes tips on fees and financing, key differences between coops and condos, advice for those needing a real estate broker, and a few tough truths about the bidding process.
The overall lesson of the article is to be informed, flexible, and prepared for any possible bumps in the road throughout the life of the deal, from bidding to closing. We would heartily recommend consulting a real estate professional with any questions about the process.
NYTimes Explores the Art of Soundproofing
In New York City, where multi-unit residential constructions make up the majority of available housing options, the soundproofing of apartments has become a booming industry. This article examines the science and practice of deadening the noise from that clomping upstairs neighbor or bassoon quartet, and how acoustic expertise can help to resolve the noise disputes that can make life difficult for tenants, neighbors, and building management.
Plan to Rezone East New York Passes
The city council recently approved a plan aimed at the rezoning of East New York, according to this article from DNAinfo. The plan, which passed near-unanimously, was lauded by many for its comprehensiveness and its focus on public infrastructure and housing, while others are critical, believing that the plan does not do nearly enough to reign in gentrification in East NYC.
Proponents and critics can agree, however, that the passing of the rezoning plan will certainly alter both the area itself and the value of its real estate. How much so remains to be seen.
Weidenbaum & Harari Quoted in Forbes
We are excited to share a recent article from Forbes, which includes a quote from partner Jack Harari. The article, entitled “Should You Waive Your Mortgage Contingency?,” was written by Roger Ma, and explores the risks and rewards that waiving the contingency can offer. While it can make an offer more attractive in a competitive market, it can also leave the purchaser exposed if they are unable to obtain financing. It is important to discuss the mortgage contingency or lack thereof with your attorney early on in the contract review process.
Of Dummy Money and Dogs: Navigating the Coop Approval Process
The New York Times Real Estate section recently published an an advice column with information that prospective coop buyers may find pertinent.
Two specific questions are ethical in nature: the first examines the use of “dummy money,” funds loaned or temporarily deposited into a bank account prior to closing in order to fulfill coop board financial requirements. The second examines potential loopholes in the enforcement of coop pet policies.
We suggest adhering to existing policies wherever possible in spirit as well as in letter: any attempt to exploit loopholes can have costly side-effects in the future, and leave the owner vulnerable to disciplinary action or even litigation.
For all such questions, we recommend that purchasers consult an attorney or real estate specialist.
Another Client of Weidenbaum & Harari Profiled in New York Times
We would like to congratulate one of our clients, Mortar Architecture + Development, on their recent profile in the New York Times Real Estate Section. The article tells the story the firm’s condominium at 324 East Fourth Street, a building with a (literally) colorful past.
Weidenbaum & Harari is pleased to represent Mortar in their efforts to populate 324 East Fourth Street with buyers who will appreciate the building’s unique charm.