Buying real estate is tricky in any market, but especially so in New York City. With special regulations, limitations, and liabilities, purchasing property in Manhattan would be all but impossible without the help of a real estate attorney who knows what he or she is talking about, according to Steven Sutton of the Law Offices of Steven R. Sutton. Known as a premier real estate law firm in Manhattan, Sutton’s office has been helping both commercial and residential clients close deals on properties for years.
When it comes to real estate, Sutton warns that people should look for an attorney who is sensitive to their own personal issues. Chief among the concerns of most apartment buyers is the issue of fair contracts—how to get one and how to make sure that the contract is secure. For both buyers and sellers, this contract is extremely important, according to Sutton.
Transfer taxes are another area of real estate law that any Manhattan legal firm should be able to help sort out for its clients, says Sutton, since the majority of property buyers would have no idea how to understand these archaic tax structures on their own. Property buyers should expect their real estate lawyers to have plenty of advice on these topics, and be able to estimate the costs that are going to be associated with them right from the beginning.
When it comes to residential real estate in Manhattan, Sutton explains that purchases are typically divided into two main areas - condos and co-ops.
Purchasing a Condo
When buying a condo, there is typically going to be an offering plan, and most real estate law firms in Manhattan will try to guide their clients through that process while making sure they are aware of what costs are going to be going into that plan.
Another issue that comes up for condo buyers has to do with borders and boundaries. An attorney should be able to help his clients with any encroachment or surveying issues. Unfortunately, Sutton says that survey issues are completely foreign to many real estate attorneys, which is why it is so worthwhile to choose a real estate law firm in Manhattan that has plenty of experience in this area.
Mortgages are another issue that comes up with real estate purchase. Sutton says that his law office in particular has contacts with a lot of banks, which helps him smoothly guide clients through the mortgage application process from beginning to end. “We represented a number of banks during the heyday of the big mortgage boom,” Sutton says, “So we are very familiar with all types of mortgage issues and title issues.”
Purchasing a Co-op
Condos and co-ops are two very different things. Although purchasing a condo is just like purchasing any other type of property, buying a co-op is what Sutton describes as a “whole different animal.” When a client purchases a co-op apartment, he or she is buying stock in a building, or a proprietary lease, rather than buying the actual apartment itself.
Sutton cautions that buyers should make sure they are working with an attorney who is sensitive to these differences in the laws and sensitive to the provisions of the co-op’s plan, since not understanding these nuances could end up costing the buyer a lot of money in the long run.
People who are looking at co-op apartments are subject to a host of rules and bylaws that condo buyers are not, simply because co-op clients are buying their way into a corporation rather than purchasing any actual real estate. Very little can be negotiated when someone is buying a co-op apartment, and Sutton says that is definitely something that people need to be aware of beforehand.
Still, Sutton says that there is a fair amount of due diligence that needs to be done when someone considers buying a co-op, as well as financial statements that need to be reviewed. He explains that a real estate attorney should be the professional handling these issues as they come up. “You need someone who is going to put in that extra effort to make sure that you know what you are getting into, as well as someone who will try to negotiate on your behalf,” Sutton recommends.
Although the fees that real estate law firms in Manhattan charge for these services can vary wildly, Sutton says that real estate negotiations and financial reviews aren’t something that most low-price firms will necessarily handle. In fact, he recommends being very cautious before hiring any attorney whose fee is well below what others in the same area are charging. “There are many technical property issues that come up during the purchase of an apartment that can be really complex,” he says. “That is why it is so important that people hire an attorney who is as experienced as possible.”
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.
