Regardless if you’re purchasing or selling real estate, the transaction will involve signing important legal documents. These documents are part of the safeguards that ensure both parties are aware of their rights and responsibilities as well as the terms and conditions of the transaction.
Doing your research on a real estate transaction means being able to read between the lines of legal contracts and the importance of careful adherence to NY property law. In New York where real estate laws can quickly become overwhelming, working with an experienced Manhattan real estate attorney can allow you to focus on achieving your real estate goals without compromising your legal rights. Avenue Law Firm seeks to assist real estate buyers and sellers in completing their transactions efficiently and effectively. To learn more about how we can help you, contact us today at (212) 729-4090 to schedule a complimentary consultation.
Experienced Real Estate Attorneys at Avenue Law Firm Explain the Definition of a Fully Executed Contract
Real estate contracts are legal documents certifying that a real estate transaction has been completed between two or more parties. These documents outline the terms in which the parties agree to facilitate the transaction.
A “fully executed contract” can mean two things. The first meaning can mean that the contract has been fulfilled completely according to its terms. All stakeholders in the agreement have accomplished their roles and obligations based on the conditions set by the contract.
A contract being “fully executed” can also mean that all stakeholders have signed the contract and expressed their agreement regarding the terms and allow themselves to be bound by the contract.
Using the meaning in this second context, executed real estate contracts formalize the sale, purchase, or lease of a property. The contract should include the following information:
- A legal description of the property
- The price discussed for the transaction
- Information about the financing option the buyer or lessor would be using to finance the property
- Deadlines of home inspections, repairs, mortgage commitments, and the submission of other important documents as needed in the transaction.
- The agreed closing date
- Contract contingencies
- Stakeholder signatures
Parties signing the contract should be of legal age and have the legal capacity to engage in a transaction.
Compared to other states, real estate transactions in New York are initiated by making an offer. It is not necessary to sign a form contract when making an offer in New York. Once the seller accepts the offer, this means that negotiations can be initiated between the stakeholders. It is important to note that neither party is legally bound to proceed with the transaction at this stage. However, parties who are interested in proceeding with the transaction need to create a contract of sale that illustrates the terms and conditions of the deal.
Before this contract is signed, your real estate attorney would need to conduct due diligence on the property and ensure that everything is in order. It is also helpful to consult property inspectors and ensure that the title is clean to avoid any issues.
Once this contract is signed, it will be considered executed. At this stage, the buyer and seller of the property would be considered “in contract” and are bound by the terms of the document they signed.
It is strongly recommended to consult an experienced Manhattan real estate attorney when negotiating and drafting a contract. A skilled attorney can assist in making sure that your rights are protected and that the terms of the deal are aligned with your real estate goals. At Avenue Law Firm, our top-rated New York City real estate attorneys have assisted in numerous transactions. From sending an offer to the final closing processes, our attorneys can assist with your real estate transaction at all stages. Contact us today at (212) 729-4090 to schedule a consultation.
Importance of an Executed Real Estate Contract
Executed real estate contracts protect all stakeholders involved in the transaction. While there are ready-made contracts made available by the local government itself, it is still important to make sure that your contract is legally binding and properly executed to ensure that any issues are dealt with in a timely manner. Aside from the necessary details in a contract such as the description of the property, the agreed price, financing options, and such, contracts can also include ‘riders’ which are add-ons or customizations to the transaction.
Adding riders to the contract can ensure that these changes would be honored as part of the transaction itself and make it a legal obligation of the stakeholders to accomplish. These contingencies can include the completion of any improvements in the property that have not yet been completed but have already been negotiated when the contract was drafted.
Your contract would also indicate the closing date of the transaction. In most residential real estate contracts, the closing date can act as an estimate rather than a hard deadline depending on the circumstances. If the parties would like to include a specific date in the contract, there should be wording in the contract that specifically states the need. In New York, the assumption is that the closing date can still be changed so this would need to be clearly communicated in the document to be binding.
Contracts are unlikely to be a one-and-done deal. Contracts would likely change before being signed depending on new terms about the transaction being negotiated. Your contract acts as the road map of your transaction and ensuring that it is created accurately and legally can help avoid costly mistakes down the road.
| Importance of an Executed Real Estate Contract | Details |
|---|---|
| Protects all stakeholders involved | Ensures legal protection for all parties engaged in the real estate transaction, offering recourse in case of disputes or issues. |
| Includes necessary details | Specifies crucial elements such as property description, price, financing terms, and potential add-ons or customizations through riders. |
| Establishes obligations through riders | Adds contingencies to the contract, making it obligatory for stakeholders to fulfill specified conditions, like completing property improvements negotiated during drafting. |
| Indicates closing date | Specifies the anticipated date for closing the transaction, with flexibility depending on circumstances, and requires clear communication to establish it as a binding deadline. |
| Acts as a roadmap for the transaction | Serves as a guide throughout the transaction process, subject to modifications based on evolving terms negotiated between parties, ensuring accuracy and legality to prevent errors. |
Working With Our Top-Rated NYC Real Estate Attorneys at Avenue Law Firm
New York’s real estate market is highly competitive. Engaging in a real estate transaction in New York can quickly become an overwhelming feat for those who are not familiar with the market and the many legal intricacies of real estate law that interact with it. Our team of real estate attorneys at Avenue Law Firm is well-versed in the legal issues and complications that are often involved with real estate transactions in New York.
We provide quality legal guidance and services including investigating the details of your transaction, drafting important legal documents, negotiating terms, as well as reviewing any existing agreements and documents involved in your transaction. Our attorneys take proactive measures to avoid possible disputes and issues to save both time and money.
Hiring an attorney to help in your transaction is not mandatory in New York but the benefits of working with an experienced real estate lawyer to ensure that your transaction is concluded efficiently and smoothly are evident. We offer a complete range of professional legal services aimed at assisting you in achieving your real estate goals. Contact us today at (212) 729-4090 to schedule a free consultation.
