What a Real Estate Attorney Does When You Buy in NYC

In NYC, the buyer’s real estate attorney negotiates the contract of sale, checks the building and the title, protects your deposit, and runs the closing. No law requires you to hire one, but in New York City it is standard practice for both the buyer and the seller to have their own lawyer. The other side, the lender and the co-op or condo all expect to deal with yours.

In many states a title or escrow company handles closings and agents fill in standard forms. In NYC the contract is usually drafted by the seller’s attorney and negotiated lawyer to lawyer, and the closing is often held as a meeting with both attorneys, the lender’s closing attorney and a title closer. Here is what your attorney does at each stage and how to hire well.

What the attorney does, from offer to keys

1. 1

   Reviews and negotiates the contract

   Once your offer is accepted, the brokers send a deal sheet to both attorneys. The seller’s attorney sends a draft contract and your attorney negotiates riders: the mortgage contingency, the closing date, what happens if the board rejects you, appliances and condition, and the contract deposit terms.
2. 2

   Does due diligence before you sign

   For a co-op or condo, your attorney reviews the building’s financial statements, recent board minutes, the offering plan and amendments, the managing agent’s questionnaire, and any pending assessments, lawsuits or major repairs. See co-op due diligence. For a house, it means surveys, permits and open violations. You can check a building’s violations on Roofy’s building lookup.
3. 3

   Gets the contract signed and the deposit into escrow

   In NYC, you sign the contract first and wire the deposit, and then the seller countersigns. Your attorney confirms the escrow details by phone, never by email alone.
4. 4

   Manages the mortgage and board timeline

   Your attorney tracks the commitment deadline, reviews the commitment letter’s conditions, and helps with the co-op board package or the condo’s right of first refusal waiver.
5. 5

   Orders and clears title (houses and condos) or a lien search (co-ops)

   For a condo or house, your attorney orders a title report and works with the title company to clear liens, judgments and old mortgages before closing. For a co-op, which is personal property, a lien search on the seller and the shares takes the place of a title report. See title insurance explained.
6. 6

   Prepares and attends the closing

   Your attorney reviews your Closing Disclosure (which the lender must give you at least three business days before closing), checks the adjustments for taxes and common charges or maintenance, prepares the transfer tax forms with the seller’s attorney, and attends the closing with you. See the closing day checklist.

Paperwork the attorneys file for you

Recording and tax forms are a big reason NYC closings involve lawyers. The NYC Real Property Transfer Tax applies to sales over $25,000, including co-op share transfers. For an individual home, condo or co-op unit the rate is 1% up to $500,000 and 1.425% above. The return is due within 30 days of the transfer, and both buyer and seller must sign it. Deeds and other documents are recorded with the City Register, which publishes them on ACRIS. In most NYC sales the seller pays the city and state transfer taxes, while the buyer pays the mansion tax on residential purchases of $1 million or more and any mortgage recording tax. Your attorney makes sure each one is calculated and paid. Estimate them with the NYC closing cost calculator.

Attorney vs broker: who does what

Since August 17, 2024, under the National Association of REALTORS® settlement rules, REALTORS® working with buyers ask them to sign a written buyer agreement before touring a home with them. It must spell out what the agent is paid, so ask your attorney to read it too. See buyer broker agreements.

How attorney fees usually work

No fee is set by law, and prices vary with the type of property, the size of the deal and the firm. Common structures:

• Flat fee for the transaction. This is common for standard co-op, condo and house purchases. Ask what counts as standard and what triggers extra charges, such as a second contract after a deal falls through, a new development purchase, a 1031 exchange or a title problem.
• Hourly billing. More common for complex deals, litigation or commercial property.
• Separate lender’s attorney fee. If you finance, the lender usually has its own closing attorney, and you pay that fee too. It appears on your Loan Estimate and Closing Disclosure.
• Deal falls through. Ask what you owe if the contract is never signed or ends before closing. Some attorneys charge a reduced fee.

Questions to ask before you hire

1. How many NYC co-op, condo or house purchases did you handle in the last year? Which type do you handle most?
2. Will you personally review the building financials and board minutes, or will a paralegal?
3. Who will be my day-to-day contact, and how fast do you return calls during contract negotiation?
4. What is the fee, what does it include, and what costs extra?
5. Do you attend the closing yourself?
6. How do you confirm wiring instructions, and will you ever send new ones by email?
7. Do you have a referral relationship with the broker or lender in this deal?

Choose your own attorney, even if a broker suggests one. The attorney should work only for you.

Protecting your money

Attorneys handle large sums: the contract deposit, and sometimes payoff and closing funds. Two protections matter:

• Verify every wire by phone. The CFPB warns buyers never to follow wiring instructions in an email, and to confirm account details by calling a number you got in person or at the start of the deal. If you wire to a scammer, call your bank right away to ask for a recall and report it to the FBI at ic3.gov. See real estate wire fraud.
• The Lawyers’ Fund for Client Protection. This New York State agency reimburses clients who lose money through a lawyer’s dishonest conduct. Its examples include theft of escrow deposits in real property transactions, and it can pay up to $450,000 per client loss.

Do sellers need an attorney?

Yes, in practice. The seller’s attorney drafts the contract, usually holds the deposit in escrow, works with the lender on the payoff of the existing mortgage, prepares the deed or stock transfer documents and the transfer tax returns, and handles the co-op flip tax or condo waiver. See how to sell a home in NYC.

This guide is general information, not legal advice. Fees and practices vary by firm and deal.