Country Buying Guides - New York

The conveyancing process

• Independent Lawyer
It is essential to use an independent lawyer with a legal knowledge of both the English and American legal systems, who are able to translate the documents and explain the terms to your full understanding.

• Due Diligence
It is important to carry out due diligence on the property you are purchasing in order to ensure there are no encumbrances on the property. Your independent lawyer will do this on your behalf. Meanwhile your lawyer will examine the financial condition of the condominium where you want to buy.

• The Real Estate Agent
Real estate agents in America work from a central database. The agents work for the vendor or purchaser, as opposed to for a certain property. It is wise to use a purchaser’s agent with experience of British purchasers.

• The Offer
Initially an oral offer on a property is submitted through your Agent immediately who will then follow it up in writing, the vendor may counter your offer, beginning a negotiation process that, hopefully, will lead to an agreement on price, terms, and closing date. Once your offer is verbally "accepted" by the Vendor, your agent will notify the Vendor's attorney in America, who in turn will draw up and send to your lawyer the initial contract.

• The Contract
The vendor’s attorney, will preparation of the contract of sale. Review of the following documents is required: the deed, survey, title insurance policy, promissory notes or mortgages on the property, certificates of occupancy, tax bills, fuel and utility bills, leases, permits for elevator, pools, etc. After your lawyer concludes that the Due diligence, you can go ahead and sign the contract. You will usually be required to present a deposit of 10% of the purchase price. This money will be held in the Vendor's attorney's escrow account (an account where the balance can not be obtained until the end of the purchase) until closing. It is important to note that until all parties have signed the contract, and it has been delivered, the Vendor can still entertain and accept other offers.

• The Interview
Firstly you will receive the board requirements and application materials which varies from building to building. The sale is conditional upon the Board of Managers' approving the purchaser, unless you are purchasing directly from the developer and as such the process should be prioritised. Your application will include a review of documents and a personal interview, if all required materials are included and in order, an approval is typically granted. After which you can proceed with the closing ceremonies. Notification of the board's decision is given within 72 hours however some boards may take longer. This process is not needed for a purchase of a town house.

• The Inspection
Prior to closing, after the Vendor has vacated, your Agent will accompany you on an appointment to inspect that the property is in the same condition or promised condition as stated in the contract.

• The Closing
Closing practices vary from region to region. Generally, all parties are present, their identity verified, money and information exchanged, and financial calculations and documents are finalised and signed. Your lawyer will record the relevant documents by filing in a public recording office. A power of attorney is commonly used, effectively giving some else the power to act on your behalf, saving you time and money flying back and fourth.

• Inheritance
America’s legal system and hence inheritance law is different to our system, making it extremely important to make a will so that in the unfortunate event of your passing, your wishes and not the word of the law is followed.

• Costs
Taxes in the USA will vary according to where you live and whether you are considered resident or non-resident. Local taxes are levied to cover education and other services. USA income taxes and capital gains taxes are fairly low, but inheritance tax needs good planning. It is essential to employ a professional to guide you through the tax system. It is essential to obtain a visa allowing you to stay in the US for the amount of time you require.

In Assocation With The International Property Law Centre LLP