Sales Contract Checklist - Sumitomo Real Estate NY - Sumitomo Real Estate Sales New York


Sales Contract Checklist

10% Down-payment

When the Buyer signs a Contract of Sale, they give a 10% down-payment to the Seller.

Mortgage Contingency

A mortgage contingency clause is a provision in the home purchase contract stating that if the prospective buyer cannot get a mortgage within a fixed period of time with the specified terms (ex.45~60days), the buyer can call off the deal and get the deposit back.

FIRPTA (Foreign Investment and Real Property Tax Act)

When a foreign entity or Seller sells a property, 15% of the selling price is withheld as deemed profit (Federal tax) withholding tax. (It is not applicable if the property's price is less than $ 350,000 and for self-use purposes.) Also, for state tax taxation, if a non-resident of New York State sells a property, the Seller will prepay 8.82% of the capital gain at the closing.

Condition of The Property

If there is no special arrangements concerning repair of the property, buyers will purchase the property "as is", in the condition when the property is in contract, except for any hardware such as refrigerator, dishwasher, oven, and air conditioner. After the contract, you do not need to paint or clean the floor. However, if any hardware such as refrigerators and air conditioners are broken, it is the Sellers responsibility to repair them. In addition, if there was any damage after the contract is signed and before the closing, it is Sellers responsibility to fix them (As it was a mutual agreement to sell "as is" condition at the contract).

*All information furnished regarding property for sale, rental or financing is from sources deemed reliable. No representation is made as to the accuracy thereof and It is submitted subject to errors, omissions, change of price, rental, commission or other conditions, prior sale, lease or financing, or withdrawal without notice.