More and more, people are becoming attracted to Long Island's East End for purchase of a year-round or second home. There are seven steps involved in consummating such a purchase.

  1. Locating A Desirable House. List all of the important features your new home must have; for example, waterfront, four bedrooms, home office, etc. Another consideration is the size of the property and whether or not there is room to expand the house or improve the property with a pool, tennis court or garage. Once you have prioritized these items and estimated a price range, your local broker can provide you with several listings to meet your needs.
  2. Negotiate the Price. As experienced homebuyers know, the seller's asking price is always negotiable. Every house has its good points and bad points. The age and condition of a house can be used by the buyer to negotiate what he or she thinks is a better price for the house. One should also remember that every seller has a minimum amount that they need to clear from the sale.
  3. Retain Counsel. Once a price is tentatively agreed upon, the next step is to retain counsel. Counsel will revise the contract prepared by the seller's attorney and prepare riders in order to guarantee full protection of a buyer's interest during the course of real estate transaction.

    4. In order to accelerate the transaction, property owners usually retain local counsel who are familiar with local zoning and building department regulations and title company requirements.

    The attorney will help the buyer obtain an engineer's report and give an evaluation of local zoning restrictions and the tax consequences of the purchase. The attorney will need to know how a buyer wishes to finance the purchase and can assist in obtaining a bank mortgage, if one is necessary.

  4. Conditions. A buyer's attorney will frequently want to condition the offer of purchase on several items that he will seek to include in the contract. If a bank mortgage is necessary, he will want to negotiate with the seller's attorney a suitable time period in which to obtain the mortgage commitment. In addition, he may want to condition the contract on a suitable water quality test and termite inspection. The experienced attorney will also require that the seller a) present a Certificate of Occupancy showing the premises in full compliance with all zoning laws; b) convey good title acceptable to a title company; and c) assume full liability for any brokerage commission due. If the vacation home is purchased off-season and a pool is included in the sale, the buyer's attorney will want to include an escrow agreement guaranteeing that the pool will operate in the summer which it is put back in operation.

    5. There are many other provisions, including those regarding escrow funds, the closing date, details on a purchase money mortgage, notice requirements and other procedural matters that must be worked out by the buyer's attorney.

  5. After The Contract. Once the contracts have been signed, the buyer's attorney will assist the buyer in obtaining a bank mortgage, if one is necessary. An application will need to be submitted to a bank with suitable guarantees about the buyer's income and credit status and the house will have to be appraised. It may take the Banks six weeks or more to complete their review of a mortgage application.

    6. The buyer's attorney will order a title report from a licensed title insurance company to determine what liens or encumbrances exist on the property. If the title report identifies any liens or encumbrances, the buyer's attorney will work with the seller's attorney to help eliminate those prior to closing. The buyer's attorney will also want to obtain a new survey for the premises if a recent one is not available or if there have been additions to the premises since the last time the property was surveyed.

  6. Pre-Closing. The sixth step involves items that must be completed a week or so before closing. The buyer must obtain homeowners insurance, insuring both himself and the bank against loss. The buyer's attorney will endeavor to supply the bank's attorney will all documents the bank needs in order to complete its file and distribute funds at closing. The buyer will want to inspect the premises a few days prior to closing to see that they are in broom-cleaning condition and that the items of furnishings agreed to be included in the sale remain on the premises. During the pre-closing stage, the buyer's attorney will review with the buyer the charges to be paid at closing for such things as title insurance, the survey, mortgage taxes, points, the bank attorneys fee, tax escrows, fire insurance premiums, and other items which will be required by a bank. The day before closing, the buyer will want to obtain all the certified checks necessary to complete the transaction.
  7. Closing. The last step involves the closing itself. A buyer is almost always present inasmuch as his signature is required on numerous bank documents when a mortgage is involved. At the closing, the title company will guarantee to the buyer's attorney that the title is free and clear from encumbrances and ensure both the buyer and the buyer's bank in this fact. Numerous checks will be issued, the real estate property taxes will be brought up to date, and apportions allowed to the seller for charges he has paid for taxes and services which extend beyond the closing date. Naturally, the buyer will usually receive a set of keys to the house.

Following the closing, the buyer's attorney should prepare a bound closing statement setting forth in detail all that occurred at the closing with copies of all instruments and checks, together with an accounting of all funds, including credits to the buyer and seller. This statement is generally given to the buyer's accountant so that proper tax treatment can be given to the transaction.

Finally, the buyer can move in and relax.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.