Title
Title (or ownership) to the house may be taken by one or more individuals, most often a husband and wife. When a husband and wife take title together, the form of ownership is called tenancy by the entirety; each owns title to the whole house and title passes automatically to the survivor if one partner dies.
If they divorce, title will be converted to a tenancy in common; each owns a one-half interest in the house. The interests of tenants in common pass through their individual estates when they die, rather than automatically transferring to other owners. If two unmarried individuals wish to take title together and have it automatically transfer to the survivor if one of them dies, they can take title as joint tenants.
How a House Is SoldA home is sold by its owner or through a licensed real estate broker who charges the owner a commission on the sale price of the home. Brokers provide marketing services, such as listing the house on the multiple listing service available to other real estate brokers but not the general public, showing the house to prospective buyers and assisting with the contract.
Prospective home buyers can select a real estate broker or buyer’s broker to represent them, assist them in identifying homes that may be of interest and arrange for visits (also called showings) of the homes. Most brokers will also assist with securing financing, arranging the necessary inspections and referring an attorney and insurance carrier.
Typically, real estate brokers assist the buyer and do not charge buyers a fee directly. They share a portion of the commission charged by the selling broker working with the owner.
Homes offered for sale by owners not using real estate brokers are often advertised in the newspaper, on certain web sites and with “for sale by owner” signs in front of the residence. If you are looking at one of these homes, you or your broker will need to make direct contact with the owner.
Signing a Contract
Contracts for the sale of real estate must be in writing in New York state. In this region, there is a commonly used contract form, which you may obtain from your real estate broker or attorney. The form allows you to indicate particular items that are included or excluded in the sale and the dates by which inspections must be completed, a mortgage must be obtained and the closing date must be scheduled.
Typically, the contract will have an attorney’s approval clause giving you several days to consult with your attorney about the contract and the transaction. Your attorney will help you resolve any problems that arise. All home owners and home buyers should sign the contract.
The Closing
Prior to the closing date, your attorney and the seller’s attorney will work together to collect the necessary documents (mainly from the seller) and to have the title to the home searched. Your closing will then be scheduled. You should expect that the closing will be on very short notice since banks control the scheduling and have many closings to complete.
At the closing, the sellers will sign a deed transferring the title of the house to you, and you will sign a number of documents, including a note and mortgage promising to repay the lender the amount of your home loan. You will pay the seller the amount of your purchase price using the proceeds of your mortgage and your own funds, which must be in a certified check or a teller’s check obtained from your bank.