Residential Contract Of Sale - a New York Form (7 Pages)

            This form of contract was prepared jointly by committees representing the New York State Bar Association, the New York State Land Title Association, the Bar of the City of New York and the New York County Lawyers’ Association. Certain pertinent clauses are addressed below. Buyers’ attorney should note that contract does not address environmental issues such as asbestos, radon, lead in drinking water, underground oil tank, existence of lead paint, termites. These should be insisted upon in a rider.
Some clauses in this contract are commented upon herein.
Be sure parties are identified correctly with Sellers listed exactly as they were in prior deed and Buyers names and selected form of ownership noted (Tenancy by Entirety for husband and wife; as  Joint Tenants for non-spousal family members; Tenancy in Common for business partners which will require a partition action to split apart).
¶1.Attach a Schedule A metes and bounds description to contract to accurately reflect premises conveyed.
¶2.Remove items of personal property from boiler plate that are not applicable. Insert “as seen on premises” , “in working order at time of contract signing” and “subject to reasonable wear and tear”.
¶6.Escrowed Downpayment. Generally placed in non-interest attorney IOLA  account (with interest diverted to New York State for community programs). When transactions involve huge sums, downpayment may be in interest bearing escrow account with interest following principal at closing or parties agreeing to split interest earned.
¶8.Mortgage Contingency. 30 to 45 days from fully executed contract  are generally provided.Due notice of mortgage denial must  be promptly transmitted to avoid  forfeiting  downpayment.
¶12. Condition of property.  If a Property Condition Disclosure Statement was completed prior to signing  the contract, it must be attached.  A court may impose penalties if it is found that Sellers had actual knowledge of a defect and failed to disclose same. Sellers have the option of providing for a $500 credit at closing in lieu of completing PCDS.  In addition, if the dwelling is pre-1978 a form providing disclosure of knowledge of existence of lead based paint and Lead Paint pamphlet must be enclosed.
¶14.Type of deed. Review deed formsto assure appropriate type is used in transaction.
¶15.Closing date and place. Should closing in an office outside of county of property sellers’ attorney should insert provision seeking travel expense from buyers.
¶23.Default remedies. Where downpayment is less than 10% seller should amend clause to allow for amount of liquidated damages beyond downpayment.
Author:
CLAIRE SAMUELSON MEADOW, Esq. is in the private practice of law, concentrating in real property transactions. In addition, she works on title matters as a consultant, attorney and representative for a New York based title agency. She is the author of numerous real estate articles distributed to lawyers, and she has appeared on the General Practice “Hot Tips” panel at the New York State Bar Association’s Annual Meeting. Recently, she has been presenting Continuing Legal Education-credit programs on real estate and title matters to the Westchester County Bar Association, the New York County Bar Association and the National Law Foundation. Mrs. Meadow authored the residential real property chapters of the New York Lawyer’s Deskbook and Formbook for more than 12 years.
Before entering private practice, Mrs. Meadow was a staff attorney in the Enforcement Division of the Securities and Exchange Commission’s New York regional office. She is a Phi Beta Kappa, cum laude graduate of Hunter College, Class of 1959, and a graduate of Columbia Law School, Class of 1962, where she was a recipient of a Moot Court Scholarship.
Mrs. Meadow is listed in Who’s Who in American Women and Who’s Who in American Law. She is a recipient of a Westchester County Woman of Achievement Award and a Certificate of Special Congressional Recognition from Congresswoman Nita M. Lowey for “outstanding and invaluable service to the community.”
Mrs. Meadow was a founding member of the New York State Women’s Bar Association, Westchester County, and its first recording secretary. She is also a member of the New York State Bar Association, Real Property Committee; the Westchester County Bar Association; and the New Rochelle Bar Association.
Don’t think this attorney has a narrow horizon. She chaired the Westchester Women’s Bar Association Annual Golf Outing for six years causing it to become such a popular community event that, in some years players had to be turned away.
Mrs. Meadow welcomes inquiries by new lawyers and general practitioners concerning basic real estate or title matters. She may be contacted at 914-834-6472.