Congratulations! You have an accepted offer on your property! So…everything’s all set, right? Well, not exactly…
Unlike other states, an accepted offer in New York is not legally binding. This actually works to the advantage of both parties – the seller is still in a position to consider a better offer if it comes along; and the buyer has an opportunity to thoroughly investigate the property before signing on the dotted line.
So how do you get from an accepted offer to a signed contract? Here’s what has to happen next:
After the deal sheet (which summarizes the basic terms of the agreement) is circulated among the agents and attorneys, the buyer’s attorney generally begins the process of conducting due diligence. This involves, among other things, reviewing the building’s offering plan, financials and the condo or co-op board’s minutes.
The seller’s attorney will draw up the initial draft of the contract for review and begin negotiations with the buyer’s attorney over the precise terms and any conditions as well as contingencies.
If an agreement is reached on the wording of the contract and the due diligence for the building goes well, the buyer will sign the contract and deliver the contract deposit (usually 10% of the purchase price). The seller will then countersign, making the deal officially binding.
Once you have a signed contract, then you’ll have something to be excited about! There’s a bit more assurance that the deal is going to move forward. However, being in contract doesn’t necessarily mean the deal will make it to the closing table. But that’s a topic for future posts 😉
Have more questions about what to expect during the sales process? Feel free to contact me! I’m always happy to help!
Nikki R. Thomas
Licensed Associate Real Estate Broker
The Corcoran Group – Village Office
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