Real Estate Law Blog http://www.jreardonlaw.com/blog.html Real Estate Law Blog COVID-19 UPDATE <table cellpadding="0" cellspacing="0" border="0" id="tabcolumn-1" style="width: 100%; margin-bottom: 15px"><tr><td><div id="column-1" usermodifiable="true" style="width: 100%"><font size="4" color="#202020"><b>COVID-19 Update:</b></font><div id="ctrl-1769878"><br></div><div id="ctrl-1769880"><font size="3">At the Law Office of Jeanne Reardon, the health and safety of our staff and clients is our top priority.&#160; Since you rely on us for your legal needs, we remain ready to help you in this difficult time as we face many health and financial challenges.&#160; Accordingly, we are taking a number of steps to minimize health risks during this health crises while serving our current clients as well as new clients coming on board.</font></div><div id="ctrl-1769881"><font size="3"><br></font></div><div id="ctrl-1769883"><font size="3">Our law firm will be adhering to the guidelines presented by the Centers for Disease Control and our local health officials, and we continue to monitor them for updates as they are released. We have implemented a plan to protect the safety of our work environment while allowing us to continue to service all of our clients.</font></div><div id="ctrl-1769884"><font size="3"><br></font></div><div id="ctrl-1769886"><font size="3">We are taking precautions with respect to non-essential meetings and face-to-face interactions. That includes telephone consultations and conference calls whenever possible. <font color="#202020"><i><b>With respect to our real estate practice, we will endeavor to utilize Powers of Attorney, pre-signed deeds, and Escrow Closings, where available, in order to close title when the transaction permits us to do so</b></i></font>.</font></div><div id="ctrl-1769887"><font size="3"><br></font></div><div id="ctrl-1769889"><font size="3">Do not hesitate to contact us if you have any questions or concerns regarding your current real estate transaction or if you are just getting started and are looking to hire a real estate attorney for an upcoming sale or purchase of a home.&#160; As always, we are committed to handling our clients&#39; matters with the utmost care and respect, and are available to assist both current and new clients. </font></div><div id="ctrl-1769890"><font size="3"><br></font></div><div id="ctrl-1769892"><font size="3">We hope that you and your family remain safe and healthy! </font></div><div id="ctrl-1769893"><font size="3"><br></font></div><div id="ctrl-1769895"><font size="3" color="#010726"><b><i>Jeanne Reardon, Esq.</i></b></font></div></div> </td> </tr> </table> http://www.jreardonlaw.com/blog/2020/03/21/COVID-19-UPDATE.aspx Law Office of Jeanne M. Reardon 03/21/2020 17:52:00 http://www.jreardonlaw.com/blog/2020/03/21/COVID-19-UPDATE.aspx What does the "on or about" closing date in my contract to purchase a home mean? <table cellpadding="0" cellspacing="0" border="0" id="tabcolumn-1" style="width: 100%; margin-bottom: 15px"><tr><td><div id="column-1" usermodifiable="true" style="width: 100%"><div id="ctrl-1"><a href="#" rel="sw_lightbox" class="userlink"><img src="http://www.jreardonlaw.com/blog/assets/0_0_0_0_250_166_csupload_70579361.jpg?u=636764558572670294" width="250" height="166" id="post-1282220:ctrl-7781229" alt="" title="" rel="sw_lightbox" description="" href="http://www.jreardonlaw.com/blog/assets/0_0_0_0_250_166_csupload_70579361_large.jpg?u=636764558572670294" singleimage="true" style="float:left;height:166px;margin:0 1.5em 7px 0;width:250px;"></a>The standard residential contract of sale used by attorneys in the New York Metropolitan area will often state that the closing will take place, for example, “on or about December 1, 2018.”&#160; In New York, unlike many other states, the “Closing Date” contained in the contract, especially if the words “on or about” precede it, is a fluid date. &#160;It is rare that a closing actually occurs on the date specified in the contract. The phrase “on or about” has been interpreted by the New York courts to mean that either side has a reasonable period beyond the “on or about” date in which to close. </div><div id="ctrl-4"><br></div><div id="ctrl-6">If all progresses on schedule, a closing can usually occur within 60 days after the contract has been fully executed by the seller and purchaser. However, not all real estate transactions proceed as planned.&#160; While many of the transactions do eventually close (unless a buyer is unable to obtain financing or an appraisal comes in too low), there are some that do end up in a dispute or litigation.&#160; If a party is unwilling to close within a “reasonable” time after the closing date, many times, before litigation is commenced, the attorney for the party wishing to close can send what is referred to as a Time of the Essence Letter (“TOE Letter”) to the other party.&#160; That letter will set forth a new closing date stating that “time is of the essence.” If the party receiving the letter does not close by that date they can be declared in default under the terms of the contract of sale.</div><div id="ctrl-7"><br></div><div id="ctrl-9">It is important to note that the “time of the essence” standard is not a statutory standard but rather one established by the courts and case law, and is constantly changing depending on each case that is decided by the courts.&#160; While the courts are silent as to what constitutes a “reasonable” time, many real estate attorneys practicing in the New York Metropolitan area have come to a consensus that “reasonable” is generally about 30 days.&#160; However, the case law has explained that <i>the other party must be given a reasonable time in which to act </i>and <i>what amounts to a reasonable time to perform depends on the circumstances of the case</i>.</div><div id="ctrl-10"><br></div><div id="ctrl-12">Whether dealing with a TOE Letter or an “on or about” closing date, the closing date and closing time frames can quickly change and extend far beyond the “on or about” closing date depending on the circumstances.</div><div id="ctrl-13"><br></div><div id="ctrl-15"><br></div></div> </td> </tr> </table> http://www.jreardonlaw.com/blog/2018/10/29/What-does-the-on-or-about-closing-date-in-my-contract-to-purchase-a-home-mean.aspx Law Office of Jeanne M. Reardon 10/29/2018 23:24:00 http://www.jreardonlaw.com/blog/2018/10/29/What-does-the-on-or-about-closing-date-in-my-contract-to-purchase-a-home-mean.aspx Real Estate Contract Mortgage Contingency Clause <table cellpadding="0" cellspacing="0" border="0" id="tabcolumn-1" style="width: 100%; margin-bottom: 15px"><tr><td><div id="column-1" usermodifiable="true" style="width: 100%"><div id="ctrl-4763789"><a href="#" rel="sw_lightbox" class="userlink"><img src="http://www.jreardonlaw.com/blog/assets/0_0_0_0_250_166_csupload_70548138.jpg?u=636739268517730233" width="250" height="166" id="post-1281513:ctrl-16" alt="" title="" rel="sw_lightbox" description="" href="http://www.jreardonlaw.com/blog/assets/0_0_0_0_250_166_csupload_70548138_large.jpg?u=636739268517730233" singleimage="true" style="float:left;height:166px;margin:0 1.5em 7px 0;width:250px;"></a>Most people obtain financing when purchasing a house, condo, or co-op.&#160; In that case, the contract of sale will contain a mortgage contingency clause making the sale contingent upon the buyer obtaining a mortgage in a certain amount.&#160; If the buyer&#39;s loan application is denied by the lending institution, the buyer can then cancel the contract and get the down payment back.</div><div id="ctrl-4763792"><br></div><div id="ctrl-4763794">In order to benefit from the protections allowed by the mortgage contingency clause the buyer must strictly abide by all its terms, i.e. the buyer must only apply for a loan in the amount stated in the clause (or such lesser sum as buyer shall be willing to accept), and obtain the mortgage within the time frame given in the clause.&#160; If the buyer applies for a loan greater than the amount stated in the clause and is then denied a loan, the buyer will have forfeited the protection afforded by the clause and will not be able to cancel the contract. &#160;If the buyer is then unable to obtain other funds to complete the purchase the buyer will be in default under the terms of the contract and more than likely lose their down payment.&#160; On the other hand, if the buyer is approved for a loan greater than stated in the mortgage clause, then no problem.&#160; Nonetheless, I&#160; would never advise a client to take such a risk and put their down payment in jeopardy.&#160; There are many reasons why the loan may be denied that have nothing to do with the financial qualifications of the buyer and are beyond the buyer&#39;s control.&#160; An experienced real estate attorney will help you navigate through this process.<br></div><div id="ctrl-4763796"><br></div><div id="ctrl-4763798">The mortgage contingency clause is there to protect your down payment should your loan be denied.&#160; To best protect yourself when purchasing a home with a mortgage, hire an experienced real estate attorney who fully understands all aspects of the mortgage contingency clause and will guide you through the entire closing process.</div><div id="ctrl-4763799"><br></div><div id="ctrl-4763801"><font size="2" color="#070707">To speak with an experienced real estate attorney, call us at (516) 314-8433.&#160; To learn more about our services and how we can assist you, visit us at<a href="https://www.jreardonlaw.com/Real-Estate-Closings.html" class="userlink"><font color="#4C4EC9"> www.jreardonlaw.com</font></a></font></div></div> </td> </tr> </table> http://www.jreardonlaw.com/blog/2018/09/30/Real-Estate-Contract-Mortgage-Contingency-Clause.aspx 09/30/2018 16:54:00 http://www.jreardonlaw.com/blog/2018/09/30/Real-Estate-Contract-Mortgage-Contingency-Clause.aspx Why a Home Buyer Needs Title Insurance <table cellpadding="0" cellspacing="0" border="0" id="tabcolumn-1" style="width: 100%; margin-bottom: 15px"><tr><td><div id="column-1" usermodifiable="true" style="width: 100%"><div id="ctrl-4461513"><a href="#" rel="sw_lightbox" class="userlink"><img src="http://www.jreardonlaw.com/blog/assets/0_0_0_0_250_166_csupload_70407688.jpg?u=636636549547015610" width="250" height="166" id="post-1278144:ctrl-5915089" alt="" title="" rel="sw_lightbox" description="" href="http://www.jreardonlaw.com/blog/assets/0_0_0_0_250_166_csupload_70407688_large.jpg?u=636636549547015610" singleimage="true" style="float:left;height:166px;margin:0 1.5em 7px 0;width:250px;"></a>Title insurance is crucial for a home buyer because it protects you and the lender from the possibility that your seller doesn&#39;t -- or previous sellers didn&#39;t -- have free and clear ownership of the house and property and, therefore, can&#39;t rightfully transfer full ownership to you. Problems with the title can limit your use and enjoyment of the property, as well as cause you financial loss.&#160; This is why you need title insurance.&#160;&#160; <br></div><div id="ctrl-4461517"><br></div><div id="ctrl-4461519">Your real estate attorney will arrange the process of getting you title insurance soon after your Contract of Sale is signed.</div><div id="ctrl-4461520"><br></div><div id="ctrl-4461522"><br></div><font color="#010726"><b><br>What Could Happen If You Don&#39;t Get Title Insurance?<br><br></b></font><div id="ctrl-4461527">Title insurance protects against the following common hidden risks just to name a few: </div><div id="ctrl-4461528"><br></div><ul><li>Errors or omissions in deeds </li><li>Mistakes in examining records </li><li>Forgery </li><li>Undisclosed or missing heirs </li></ul><ul><li>False impersonation of the true owner of the property</li><li>Instruments executed under invalid or expired power of attorney</li><li>Mistakes in recording legal documents </li><li>Misinterpretations of wills Deeds by persons of unsound mind </li><li>Deeds by minors</li><li>Deeds by persons supposedly single, but in fact married</li><li>Fraud</li><li>Liens for unpaid estate, inheritance, income or gift taxes</li></ul><div id="ctrl-4461544"><br></div><div id="ctrl-4461546"><br></div><div id="ctrl-4461548"><font color="#010726"><b>Title Insurance: Lender&#39;s Policies and Buyer&#39;s Policies</b></font></div><div id="ctrl-4461549"><font color="#010726"><b><br></b></font></div><div id="ctrl-4461551">Title insurance is typically a combination of two policies: a lender&#39;s policy and a borrower&#39;s policy. Your lender -- assuming you&#39;re taking out a mortgage, will require that you buy a lender&#39;s policy (also called a &quot;mortgagee&#39;s policy&quot;) to pay for its legal defense costs and reimburse any mortgage payments you can&#39;t make because you&#39;ve lost the house to someone else&#39;s claim on it.</div><div id="ctrl-4461552"><br></div><div id="ctrl-4461554">The lender may also require you to buy an &quot;owner&#39;s policy,&quot; covering your own legal fees and other losses, as yet another step toward protecting the lender&#39;s collateral. Your title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.&#160; Title insurance will give you the peace of mind in knowing that the investment that you have made in your home is a safe one.</div><div id="ctrl-4461555"><br></div><div id="ctrl-4461557"><i>The Law Office of Jeanne M. Reardon assists New York property owners with title insurance matters. </i><font size="2"><i><font face="Times New Roman" color="#070707"><font face="arial"><font color="#585858">To speak with an experienced </font></font></font><a href="http://www.jreardonlaw.com/Deed-Transfer.html" class="userlink"><font face="Times New Roman" color="#2E3E82"><font face="arial">New York</font></font></a><font face="Times New Roman" color="#070707"><font face="arial"><a href="http://www.jreardonlaw.com/Deed-Transfer.html" class="userlink"><font color="#2E3E82"></font></a><a href="default.html" class="userlink"><font color="#585858">real estate attorney, </font></a><font color="#585858">call us at </font><b>(516) 314-8433 </b><font color="#585858">or </font><a href="http://www.jreardonlaw.com/Contact-Us.html" class="userlink"><font color="#2E3E82">e-mail us</font></a>. <br></font></font></i></font></div><div id="ctrl-4461563"><br></div><font color="#010726"><b><br></b></font></div> </td> </tr> </table> http://www.jreardonlaw.com/blog/2018/06/03/Why-a-Home-Buyer-Needs-Title-Insurance.aspx 06/03/2018 19:36:00 http://www.jreardonlaw.com/blog/2018/06/03/Why-a-Home-Buyer-Needs-Title-Insurance.aspx Joint Ownership of Real Property in New York <table cellpadding="0" cellspacing="0" border="0" id="tabcolumn-1" style="width: 100%; margin-bottom: 15px"><tr><td><div id="column-1" usermodifiable="true" style="width: 100%"><div id="ctrl-7448517"><a href="#" rel="sw_lightbox" class="userlink"><img src="http://www.jreardonlaw.com/blog/assets/0_0_0_0_123_86_csupload_70379078.jpg?u=636618325335544782" width="123" height="86" id="post-1277457:ctrl-2825756" alt="" title="" rel="sw_lightbox" description="" href="http://www.jreardonlaw.com/blog/assets/0_0_0_0_123_86_csupload_70379078_large.jpg?u=636618325335544782" singleimage="true" style="float:left;height:86px;margin:0 1.5em 7px 0;width:123px;"></a>Joint property ownership can be a great solution for people who want to own a home, especially for first-time buyers. But joint ownership can limit your rights and options -- not only while you own the property, but also when you want to transfer ownership to an heir or another buyer. There are three major forms of joint property ownership (or &quot;concurrent ownership&quot;) -- tenancy in common, joint tenancy, and tenancy by the entirety.</div><div id="ctrl-7448520"><br></div><div id="ctrl-7448522"><font color="#010726"><br></font></div><font color="#010726"><b><font size="2">Tenancy in Common (TIC)<br><br></font></b></font><div id="ctrl-7448526">Tenancy in common (sometimes called a &quot;TIC&quot;) is the most popular form of concurrent property ownership. Tenants in common (or co-tenants) each own an equal share of a piece of property -- whether it&#39;s a house, an apartment building, or other type of real estate. This generally means that each co-tenant has an equal right to possess or use the entire property, and that the rent or maintenance costs of the property are shared among the co-tenants according to their ownership interest. Each co-tenant also possesses a share in the value of the property as it appreciates.</div><div id="ctrl-7448527"><br></div><div id="ctrl-7448529">Real estate owned by one or more persons as tenants in common gives a percentage ownership to each person, and upon that owner’s death, their percentage share goes to their estate. If they have a will, it goes to the persons named in their will. If they die without a will, then it goes to their legal heirs-at-law. With this type of ownership, each owner has the right to transfer their share during their lifetime, without obtaining the permission of the co-owner. If the deed is silent as to form of ownership, then there is a presumption in the law that the parties own as tenants in common. &#160;&#160;Any co-tenant has the right to live in the premises without paying rent to the other owners, and every co-tenant may be entitled to credits for items such as taxes, maintenance and repairs. If the premises are rented to a non-owner, all co-tenants would be entitled to share in the rent.&#160; </div><div id="ctrl-7448530"><br></div><div id="ctrl-7448532">A co-tenant can transfer interest in a tenancy in common to another buyer or to an heir -- via a will, for example. A co-tenant can also mortgage a share in the property. What a co-tenant <i>cannot</i> do is transfer or sell the other co-tenants&#39; interests in the property. Once a co-tenant&#39;s interest in a tenancy in common is transferred, the new owner steps into the shoes of the co-tenant seller and becomes a tenant in common with the other co-tenants.</div><div id="ctrl-7448533"><br></div><div id="ctrl-7448535"><br></div><div id="ctrl-7448537"><font color="#010726"><b>Joint Tenancy</b></font></div><div id="ctrl-7448538"><font color="#010726"><b><br></b></font></div><div id="ctrl-7448540">Joint tenancy is sometimes called &quot;joint tenancy with right of survivorship.&quot; Joint tenancy ownership implied that a joint tenant lost all interest in their property when they died. The deceased person&#39;s interest was automatically transferred to the other joint tenant.&#160; Thus, in a joint tenancy, the last surviving joint tenant owned all the property outright.</div><div id="ctrl-7448541"><br></div><div id="ctrl-7448543">If you want to create a joint tenancy or take possession of property as joint tenants, make sure that your lawyer or real estate agent is very careful about the phrasing in the deed or will. In general, courts prefer very specific wording that shows the desire to create a joint tenancy and the right of survivorship and <i>not</i> a tenancy in common. For example, a deed or will might include instructions that read &quot;to A and B, as joint tenants with a right of survivorship, and not as tenants in common.&quot;</div><div id="ctrl-7448544"><br></div><div id="ctrl-7448546">Sometimes, under state law, a joint tenancy will automatically convert to a tenancy in common. For example, if joint tenants die simultaneously, their property is treated as a tenancy in common by the courts, for purposes of inheritance and estate distribution. And if two or more people inherit property from a last surviving joint tenant, they do so as tenants in common instead of as joint tenants.</div><div id="ctrl-7448547"><br></div><div id="ctrl-7448549"><br></div><div id="ctrl-7448551"><font color="#010726"><b>Tenancy by the Entirety</b></font></div><div id="ctrl-7448552"><b><br></b></div><div id="ctrl-7448554">The third form of ownership -- tenancy by the entirety -- is only available to a married couple who owns a piece of property together.&#160; &#160;The couple must be married at the time they acquire the property and must remain married in order for the tenancy by the entirety to be valid.&#160; If a married couple divorce after taking title to the property as tenants in entirety, they then become tenants in common.<b></b></div><div id="ctrl-7448555"><br></div><div id="ctrl-7448557">The deed should recite the names as follows: “John Doe and Jane Doe, husband and wife” or John Doe and Jane Doe, his wife.” If silent, it is presumed that a married couple has taken as tenants by the entirety. Not all states recognize tenancies in entirety -- but those that do often presume that a grant of property to a husband and wife automatically creates a tenancy by the entirety, unless some other type of ownership is specified. &#160;If a different form of ownership is desired between a husband and wife, then it must be specified as either tenants in common or joint tenancy with right of survivorship. </div><div id="ctrl-7448558"><br></div><div id="ctrl-7448560">Under a tenancy by the entirety in New York State, upon the death of one spouse, the other spouse owns the property free and clear of any encumbrances that may have been caused by the other spouse. Thus, if one spouse sells or mortgages the survivorship interest to a third party, the third party will get only a contingent interest.&#160; For example, where the husband conveys or grants a mortgage to a third party, the third party will get nothing if the husband predeceases the wife.&#160; It the wife dies before the husband, the third party will own the property outright, or will have an enforceable mortgage on the husband’s full fee interest.&#160; Neither spouse can disinherit the other spouse by leaving the property to someone else in their will.</div><div id="ctrl-7448561"><br></div><div id="ctrl-7448563"><i>The Law Office of Jeanne M. Reardon assists New York property owners with strategies to protect and pass on their homes and real estate investments. </i><font size="2"><i><font face="Times New Roman" color="#070707"><font face="arial"><font color="#585858">To speak with an experienced </font></font></font><a href="http://www.jreardonlaw.com/Deed-Transfer.html" class="userlink"><font face="Times New Roman" color="#2E3E82"><font face="arial">New York</font></font></a><font face="Times New Roman" color="#070707"><font face="arial"><a href="http://www.jreardonlaw.com/Deed-Transfer.html" class="userlink"><font color="#2E3E82"> deed attorney</font></a>, <font color="#585858">call us at </font><b>(516) 314-8433 </b><font color="#585858">or </font><a href="http://www.jreardonlaw.com/Contact-Us.html" class="userlink"><font color="#2E3E82">e-mail us</font></a>. <font color="#585858">To learn more about our deed transfer services visit us at:</font>&#160; <a href="http://www.jreardonlaw.com/Deed-Transfer.html" class="userlink"><font color="#2E3E82">www.jreardonlaw.com/Deed-Transfer.html</font></a></font></font></i></font></div></div> </td> </tr> </table> http://www.jreardonlaw.com/blog/2018/05/13/Joint-Ownership-of-Real-Property-in-New-York.aspx Law Office of Jeanne M. Reardon 05/13/2018 17:21:00 http://www.jreardonlaw.com/blog/2018/05/13/Joint-Ownership-of-Real-Property-in-New-York.aspx Home Mortgage Refinance <table cellpadding="0" cellspacing="0" border="0" id="tabcolumn-1" style="width: 100%; margin-bottom: 15px"><tr><td><div id="column-1" usermodifiable="true" style="width: 100%"><div id="ctrl-76912"><b><font face="arial narrow" size="3" color="#010726">Standard Refinance</font></b></div><div id="ctrl-76913"><br></div><div id="ctrl-76915">A standard refinance paying off an existing mortgage with the proceeds from a new loan.&#160; In order to decide whether this is worthwhile, the savings in interest must be weighed against the fees associated with refinancing. Other reasons to refinance include reducing the term of a longer mortgage, or switching between an adjustable-rate and a fixed-rate mortgage. </div><div id="ctrl-76916"><br></div><div id="ctrl-76918">A <b><font color="#202020">cash-out refinance</font></b> is taking a loan for more than you owe on your existing mortgage. Your existing mortgage is paid off from the new loan proceeds and you receive the balance of the new loan. You might do this if you want to make home improvements or pay for a child&#39;s education. Cash-out refinancing removes some of the equity you have built up in your home.</div><div id="ctrl-76919"><br></div><div id="ctrl-76921"><b><font color="#202020">Closing costs</font></b> are the fees paid when you close on a refinance loan. These fees may include application fees; title examination, abstract of title, title insurance, and property survey fees; fees for preparing deeds, mortgages, and settlement documents; attorneys&#39; fees; mortgage recording tax; recording fees; estimated costs of taxes and insurance; and origination, appraisal, and credit report fees. Under the Real Estate Settlement Procedures Act (RESPA), the borrower receives a &quot;good faith estimate&quot; of closing costs within three days of application. </div><div id="ctrl-76922"><br></div><div id="ctrl-76924"><br></div><div id="ctrl-76926"><b><font face="arial narrow" size="3" color="#010726">What is a New York CEMA?</font></b></div><div id="ctrl-76927"><b><font face="arial narrow" size="3" color="#010726"><br></font></b></div><div id="ctrl-76929">“CEMA” stands for Consolidation, Extension and Modification Agreement.&#160; A CEMA allows borrowers to save on the amount of the mortgage recording tax associated with the refinance.&#160;</div><div id="ctrl-76930"><br></div><div id="ctrl-76932">CEMA is a tool that can help a borrower save thousands of dollars in mortgage recording tax on the new loan amount. &#160;In reality, rather than having the original mortgage satisfied and discharged of record, the original mortgage is assigned to the new lender. The parties execute a new mortgage for refinance closing costs and for additional funds if it&#39;s a cash-out refinance, and an agreement which assigns the original mortgage to the new lender and consolidates the original and new mortgage into one mortgage. The borrower would only&#160;have to pay taxes on the amount of the new loan that exceeds the unpaid balance of the original loan, such as closing costs or cash out. &#160;Although it can be a lengthy process, a CEMA is well worth the additional time as it can save a borrower thousands of dollars in mortgage recording taxes which would otherwise be payable at closing.</div><div id="ctrl-76933"><br></div><div id="ctrl-76935"><font color="#585858">Contact</font> our expert Long Island mortgage refinance attorneys today to find out how we can help you <b><font color="#202020">save thousands of dollars in closing costs</font></b>, specifically mortgage recording tax, by refinancing your mortgage with a Consolidation, Extension and Modification Agreement (CEMA).&#160; <br></div><div id="ctrl-76937"><br></div><div id="ctrl-76939"><i>Our mortgage lawyers represent clients in all areas of New York , including all 5 boroughs of NYC (Manhattan, Brooklyn, Queens, Bronx and Staten Island), Long Island (Nassau and Suffolk Counties), and Westchester County.&#160; We look forward to helping you.&#160; Call us today at (516) 314-8433 or <a href="Contact-Us.html" class="userlink">e-mail us</a>.<br></i></div><div id="ctrl-76942"><br></div></div> </td> </tr> </table> http://www.jreardonlaw.com/blog/2018/02/11/Home-Mortgage-Refinance.aspx Law Office of Jeanne M. Reardon 02/11/2018 16:23:00 http://www.jreardonlaw.com/blog/2018/02/11/Home-Mortgage-Refinance.aspx Will I Pay Capital Gains Taxes on the Sale of My Home <table cellpadding="0" cellspacing="0" border="0" id="tabcolumn-1" style="width: 100%; margin-bottom: 15px"><tr><td><div id="column-1" usermodifiable="true" style="width: 100%"><div id="ctrl-1"><a href="#" rel="sw_lightbox" class="userlink"><img src="http://www.jreardonlaw.com/blog/assets/0_0_0_0_288_192_csupload_70120958.jpg?u=636473154018126269" width="288" height="192" id="post-1270543:ctrl-13509737" alt="" title="" rel="sw_lightbox" description="" href="http://www.jreardonlaw.com/blog/assets/0_0_0_0_288_192_csupload_70120958_large.jpg?u=636473154018126269" singleimage="true" style="float:left;height:192px;margin:0 1.5em 7px 0;width:288px;"></a>Will you pay tax on the sale of your home? Likely not, unless you have gains&#160;that are more than $250,000 or more than $500,000 for married couples. </div><div id="ctrl-4"><br></div><div id="ctrl-6"><font color="#202020"><b>Old Rule:</b></font></div><div id="ctrl-7">Until 1997, once you reached the age of 55, you had the one-time option of excluding up to $125,000 of gain on the sale of your home providing it was your primary residence.</div><div id="ctrl-8"><font color="#202020"><br></font></div><div id="ctrl-10"><font color="#202020"><b>New Rule:</b></font></div><div id="ctrl-11">Now, anyone, regardless of age, can exclude <a href="https://www.irs.gov/taxtopics/tc700/tc701" target="_blank" class="userlink">up to $250,000</a> of gain or $500,000 for a married couple filing jointly on the sale of a home.</div><div id="ctrl-13"><br></div><div id="ctrl-15"> That means most people will pay no tax unless they have lived there for less than 2 out of the last 5 years</div><div id="ctrl-16">Who Qualifies for Tax-free Gains When They Sell Their Home?</div><div id="ctrl-17"><br></div><div id="ctrl-19">To qualify for the capital gain tax exclusion on your home sale, you must meet the following <a href="https://www.irs.gov/taxtopics/tc700/tc701" target="_blank" class="userlink">IRS requirements</a>.</div><div id="ctrl-21"><br></div><ul><li>Owned the home for at least 2 years. (the ownership test)</li><li>Lived in the home as your main home for at least 2 years. This is the use test. If you plan on renting your home for part of the year, study this use test carefully. The amount of gain you can exclude from taxes may be proportional to how much you use it vs. rent it.</li><li>During the 2-year period ending on the date of sale, you did not exclude gain from the sale of another home.</li></ul><div id="ctrl-27"><br></div><div id="ctrl-29">You can use this capital gain exclusion to avoid <a href="https://www.thebalance.com/sale-of-your-home-3193496" class="userlink">tax on a home sale</a> over and over.</div><div id="ctrl-31"><br></div><div id="ctrl-33"><br></div><div id="ctrl-35"><i>The Law Office of Jeanne M. Reardon assists New York property owners with strategies to protect and pass on their homes and real estate investments. </i><i>To speak with an experienced </i><a href="Real-Estate-Closings.html" class="userlink"><i>New York</i></a><i><a href="Real-Estate-Closings.html" class="userlink"> real estate attorney</a>, </i><i>call us at </i><b><i>(516) 314-8433 </i></b><i>or </i><i><a href="http://www.jreardonlaw.com/Contact-Us.html" class="userlink">e-mail us</a>. </i><i>To learn more about our deed transfer services visit us at:</i><i>&#160; <a href="http://www.jreardonlaw.com/Deed-Transfer.html" class="userlink">www.jreardonlaw.com</a></i></div></div> </td> </tr> </table> http://www.jreardonlaw.com/blog/2017/11/26/Will-I-Pay-Capital-Gains-Taxes-on-the-Sale-of-My-Home.aspx 11/26/2017 17:50:00 http://www.jreardonlaw.com/blog/2017/11/26/Will-I-Pay-Capital-Gains-Taxes-on-the-Sale-of-My-Home.aspx How to Add Someone to the Deed of My New York Home as a Joint Owner <table cellpadding="0" cellspacing="0" border="0" id="tabcolumn-1" style="width: 100%; margin-bottom: 15px"><tr><td><div id="column-1" usermodifiable="true" style="width: 100%"><div id="ctrl-14991534"><br></div><div id="ctrl-14991536"><a href="#" rel="sw_lightbox" class="userlink"><img src="http://www.jreardonlaw.com/blog/assets/0_0_0_0_167_167_csupload_70120914.jpg?u=636473138679275714" width="167" height="167" id="post-1270541:ctrl-13873026" alt="" title="" rel="sw_lightbox" description="" href="http://www.jreardonlaw.com/blog/assets/0_0_0_0_167_167_csupload_70120914_large.jpg?u=636473138679275714" singleimage="true" style="float:left;height:167px;margin:0 1.5em 7px 0;width:167px;"></a>There are many reasons you may want to add someone to the title of your home. Maybe you just got married and would like your new spouse listed as part owner of your home.&#160;Or you may want to add an adult child to your title for estate planning purposes.</div><div id="ctrl-14991539"><br></div><div id="ctrl-14991541">Whatever the reason, you will need to retain an attorney, experienced in real estate, to draft a new deed conveying &#160;your home &#160;to yourself and the person you wish to add to&#160;your title. In addition to the deed, your attorney will also need to prepare transfer tax returns. While there is no transfer tax due on conveyances which are considered gifts, (i.e. no money given for the conveyance) the returns must still be prepared and filed with the county clerk when the deed is recorded.</div><div id="ctrl-14991542"><br></div><div id="ctrl-14991544">Review your mortgage documents or contact your lender before initiating the process to change your deed. If you transfer your interest in the property, or a share of it, to someone else without the lender&#39;s permission, it may exercise the loan&#39;s due-on-sale clause. Even if the person you&#39;re adding doesn&#39;t give you money for ownership in your property, the lender still may view the transfer of ownership as a sale and can demand payment in full. Depending on your financial situation, this issue may cause you to reconsider making the addition. If your mortgage contains a due upon sale clause, talk to your lender about adding someone to your deed. Some financial institutions give consent, allowing you to add another person to your property deed without requiring you pay off your loan.</div><div id="ctrl-14991545"><br></div><div id="ctrl-14991547">How your new deed is drafted will determine your type of joint ownership. There are three ways to take title to the deed in New York depending on the language used in your deed, and they are as follows: (1) joint tenants with rights of survivorship, (2) tenants in common, or (3) tenants by the entirety. Your attorney can advise you as to which type of joint ownership is appropriate in your case.</div><div id="ctrl-14991548"><br></div><div id="ctrl-14991550"><i>The Law Office of Jeanne M. Reardon assists New York property owners with strategies to protect and pass on their homes and real estate investments. </i><i>To speak with an experienced </i><i><a href="http://www.jreardonlaw.com/Deed-Transfer.html" class="userlink">New York</a></i><i><a href="http://www.jreardonlaw.com/Deed-Transfer.html" class="userlink"> deed attorney</a>, </i><i>call us at </i><b><i>(516) 314-8433 </i></b><i>or </i><i><a href="http://www.jreardonlaw.com/Contact-Us.html" class="userlink">e-mail us</a>. </i><i>To learn more about our deed transfer services visit us at:</i><i>&#160; <a href="http://www.jreardonlaw.com/Deed-Transfer.html" class="userlink">www.jreardonlaw.com/Deed-Transfer.html</a></i></div><div id="ctrl-14991555">&#160;<br></div></div> </td> </tr> </table> http://www.jreardonlaw.com/blog/2017/11/26/How-to-Add-Someone-to-the-Deed-of-My-New-York-Home-as-a-Joint-Owner.aspx Law Office of Jeanne M. Reardon 11/26/2017 17:04:00 http://www.jreardonlaw.com/blog/2017/11/26/How-to-Add-Someone-to-the-Deed-of-My-New-York-Home-as-a-Joint-Owner.aspx New TRID Rules <table cellpadding="0" cellspacing="0" border="0" id="tabcolumn-1" style="width: 100%; margin-bottom: 15px"><tr><td><div id="column-1" usermodifiable="true" style="width: 100%"><div id="ctrl-5442213"><a href="#" rel="sw_lightbox" class="userlink"><img src="http://www.jreardonlaw.com/blog/assets/0_0_0_0_217_149_csupload_69646856.png?u=636267690170619478" width="217" height="149" id="post-1258090:ctrl-5315982" alt="" title="" rel="sw_lightbox" description="" href="http://www.jreardonlaw.com/blog/assets/0_0_0_0_217_149_csupload_69646856_large.png?u=636267690170619478" singleimage="true" pngsrc="/blog/assets/0_0_0_0_217_149_csupload_69646856.png?u=636267690170619478" style="float:left;height:149px;margin:0 1.5em 7px 0;width:217px;"></a>On October 3, 2015, the Consumer Financial Protection Bureau’s (CFPB) new mortgage disclosure law, also known as the TRID went into effect. TRID will help consumers be more informed regarding the closing cost. </div><div id="ctrl-5442216"><br></div><div id="ctrl-5442218">Here are <b>11 things you should know about the new law:</b></div><div id="ctrl-5442219"><b><br></b></div><div id="ctrl-5442221">1. Initial Good Faith Estimate (GFE) and Truth in Lending disclosure (TIL) are now combined into one new form called the Loan Estimate (LE).</div><div id="ctrl-5442222"><br></div><div id="ctrl-5442224">2. Instead of the old forms such as the HUD-1 and Final TIL we now have the Closing Disclosure (CD). Most major lenders will prepare the CD for the borrower; some however may rely on settlement agents. The new form will describe the loan terms, projected loan payments, closing cost at closing, loan features such as assumption, escrow details, borrower’s liability at foreclosure and others. The Sellers will also have a CD statement.</div><div id="ctrl-5442225"><br></div><div id="ctrl-5442227">3. The CD will be provided by the Lender to the consumer/borrower at least three days prior to the scheduled closing date but can be waived if consumer has a “bona fide emergency”.</div><div id="ctrl-5442228"><br></div><div id="ctrl-5442230">4. The Lender will now provide the borrower with list of closing service providers so that they can shop for services.</div><div id="ctrl-5442231"><br></div><div id="ctrl-5442233">5. If the following changes occur then a new CD must be issued with an additional 3 day waiting period:</div><blockquote><ul><li>APR changes 1/8 of a percent</li><li> Pre-payment penalty added to your Note</li><li> Loan is changed from fixed to variable, negative amortization</li></ul></blockquote><div id="ctrl-5442239"><br></div><div id="ctrl-5442241">6. Closing fees subject to zero tolerance unless otherwise excepted.</div><blockquote><ul><li>10% tolerance for charges paid to third parties-charges cannot increase by more than 10%</li><li> no tolerance-charges can increase without limits if originally disclosed</li><li> 0% tolerance- charges cannot increase at all</li></ul></blockquote><div id="ctrl-5442247"><br></div><div id="ctrl-5442249">7. How do you determine what category you fall in?</div><blockquote><ul><li>Does lender allow borrower to shop for the third party services? If third party provider is on the bank list, there is a 10% tolerance, if not on the list there is no tolerance.</li></ul></blockquote><div id="ctrl-5442253"><br></div><div id="ctrl-5442255">8. Fees that can’t increase:</div><blockquote><ul><li>fees to brokers or creditor</li><li> charges to an affiliate of broker or creditor</li><li> charges to an unaffiliated third party – if consumer not allowed to shop</li><li> transfer taxes</li></ul></blockquote><div id="ctrl-5442262"><br></div><div id="ctrl-5442264">9. Any variation of the above must be refunded no later than 60 days after closing.</div><div id="ctrl-5442265"><br></div><div id="ctrl-5442267">10. Seller will receive CD by or at closing. This will be prepared by the bank attorney in addition to the statement provided by the Seller’s lawyer.</div><div id="ctrl-5442268"><br></div><div id="ctrl-5442270">11. <b>TRID will not apply to:</b> HELOCS, Reverse Mortgages, Commercial Loans and lenders who make 5 or less loans per year.</div><div id="ctrl-5442271"><br></div><div id="ctrl-5442273">The Closing process will be more organized, with all the numbers worked out about a week prior to closing so there are no surprises on the closing day.</div><div id="ctrl-5442274">&#160;<br></div></div> </td> </tr> </table> http://www.jreardonlaw.com/blog/2017/04/02/New-TRID-Rules.aspx 04/02/2017 21:30:00 http://www.jreardonlaw.com/blog/2017/04/02/New-TRID-Rules.aspx Using a Quitclaim Deed to Transfer Property <table cellpadding="0" cellspacing="0" border="0" id="tabcolumn-1" style="width: 100%; margin-bottom: 15px"><tr><td><div id="column-1" usermodifiable="true" style="width: 100%"><div id="ctrl-2224956"><a href="#" rel="sw_lightbox" class="userlink"><img src="http://www.jreardonlaw.com/blog/assets/0_0_0_0_136_136_csupload_69532539.jpg?u=636230332995920577" width="136" height="136" id="post-1254388:ctrl-2164447" alt="" title="" rel="sw_lightbox" description="" href="http://www.jreardonlaw.com/blog/assets/0_0_0_0_136_136_csupload_69532539_large.jpg?u=636230332995920577" singleimage="true" style="float:left;height:136px;margin:0 1.5em 7px 0;width:136px;"></a>I am often asked by clients looking to transfer property whether I will be using a quitclaim deed to complete the transfer.&#160; I tell my clients that in the New York Metropolitan area, the type of deed customarily used to convey real property, whether to a third party in an arm’s length transaction or to a family member, is a “Bargain and Sale Deed with Covenants Against Grantor’s Acts.”</div><div id="ctrl-2224959"><br></div><div id="ctrl-2224961">A quitclaim deed must to used with caution and can be dangerous or beneficial depending upon whether you are the grantor or grantee.&#160; This type of deed conveys the interest you have in a property <i>without providing any warranties or guarantees</i> about the interest you are conveying.&#160; A quitclaim deed&#160;means you are only transferring whatever interest and title you MAY have in the property, subject to any claims which exist or may arise.&#160; It does not ensure good title as a Bargain and Sale Deed with Covenants Against Grantor&#39;s Acts would.&#160; </div><div id="ctrl-2224962"><font color="#434343"><br></font></div><div id="ctrl-2224964"><font color="#434343">The <a href="http://public.leginfo.state.ny.us/LAWSSEAF.cgi?QUERYTYPE=LAWS+&QUERYDATA=$$RPP258$$@TXRPP0258+&LIST=LAW+&BROWSER=BROWSER+&TOKEN=41470941+&TARGET=VIEW" target="_blank" class="userlink"><font color="#2E3E82">New York State Real Property Law Sec. 258</font></a><font color="#585858"> recognizes several types of deeds to be used to convey real property. A quitclaim deed is among the recognized forms.&#160; Nevertheless, the customary practice among local attorneys in New York will determine the appropriate deed to be used.&#160; While there is no case law or statute prohibiting the use of a quitclaim deed to convey a home in the New York Metropolitan area, its use would be unusual and could raise questions down the road and therefore should be used only in very limited circumstances.</font></font></div><div id="ctrl-2224966"><font color="#434343"><br></font></div><div id="ctrl-2224968"><font color="#434343"><font color="#585858">Transferring title by a deed whether by a quitclaim deed or any other type of deed is a serious matter with numerous legal and financial consequences and should <i><u>not be attempted without an attorney</u></i>.&#160; A deed may not be effective if not prepared properly or executed properly. A New York real estate attorney can ensure that the legal formalities required for deeds are met, and that you thoroughly understand what the conveyance process entails. Once the deed is properly executed, it must then be recorded in the public records of the county where the property is located. </font><br></font></div><div id="ctrl-2224971"><font color="#010726"><br></font></div><div id="ctrl-2224973"><i>The Law Office of Jeanne M. Reardon assists New York property owners with strategies to protect and pass on their homes and real estate investments. </i><font size="2"><i><font face="Times New Roman" color="#070707"><font face="arial"><font color="#585858">To speak with an experienced </font></font></font><a href="Deed-Transfer.html" class="userlink"><font face="Times New Roman" color="#2E3E82"><font face="arial">New York</font></font></a><font face="Times New Roman" color="#070707"><font face="arial"><a href="Deed-Transfer.html" class="userlink"><font color="#2E3E82"> deed attorney</font></a>, <font color="#585858">call us at </font><b>(516) 314-8433 </b><font color="#585858">or </font><a href="Contact-Us.html" class="userlink"><font color="#2E3E82">e-mail us</font></a>. <font color="#585858">To learn more about our deed transfer services visit us at:</font>&#160; <a href="Deed-Transfer.html" class="userlink"><font color="#2E3E82">www.jreardonlaw.com/Deed-Transfer.html</font></a></font></font></i></font></div><div id="ctrl-2224978"><br></div><div id="ctrl-2224980"><br></div><div id="ctrl-2224982"><br></div><div id="ctrl-2224984"><br></div><div id="ctrl-2224986"><br></div><div id="ctrl-2224988"><br></div></div> </td> </tr> </table> http://www.jreardonlaw.com/blog/2017/02/18/Using-a-Quitclaim-Deed-to-Transfer-Property.aspx Law Office of Jeanne M. Reardon 02/18/2017 15:57:00 http://www.jreardonlaw.com/blog/2017/02/18/Using-a-Quitclaim-Deed-to-Transfer-Property.aspx