New York process · buyer view
The New York Home-Buying Process: Your Step-by-Step Checklist
Buying a home in New York means working through an attorney-driven process with state-specific disclosure rules, multiple transfer taxes, and (for condos and co-ops) extra approval steps.
Reading as buyer. Switch to seller
Phase 1 of 7 · typically 2-8 weeks
Pre-Offer
Get your money lined up, hire your team, and start touring homes. In New York that team includes a lender, a buyer's agent, and a real estate attorney.
Get pre-approved for a mortgage
LenderBefore you start touring homes
Talk to 2-3 lenders to compare interest rates, closing costs, and loan terms. You will need W-2s, recent pay stubs, bank statements, and tax returns. A pre-approval letter shows sellers you can actually buy the home.
You'll need
- W-2s (last 2 years)
- Pay stubs (last 30 days)
- Bank statements (last 2 months)
- Tax returns (last 2 years)
- Photo ID
Cost: $0
Sign a buyer representation agreement with your agent
Your agentBefore touring any home
Since the NAR settlement took effect on August 17, 2024, your agent must have a signed buyer representation agreement with you before showing any home. The agreement spells out exactly what your agent will be paid, who pays it, and how long the agreement lasts.
You'll need
- Buyer representation agreement
Cost: $0
Sign the New York agency disclosure form
Your agentAt your first substantial conversation with an agent
Under New York Real Property Law section 443, your agent must hand you the state agency disclosure form at the first real conversation about buying. You sign it to acknowledge who the agent represents — you, the seller, or both. Use only the current Department of State form (revised February 2022).
You'll need
- New York State Disclosure Form for Buyer and Seller (Feb 2022 revision)
Cost: $0
Hire a real estate attorney
AttorneyBefore making an offer
New York is an attorney state — only a lawyer can draft or change the purchase contract. Brokers and agents are not allowed to write the contract. Find a real estate attorney before you make an offer so they are ready to negotiate the contract as soon as a seller says yes.
Cost: $1,500-$3,500 typical
Tour homes that fit your budget and needs
Your agentAfter pre-approval and signed buyer agreement
Once you are pre-approved and have a signed buyer representation agreement, your agent can show you homes. Tour several so you have a feel for the market and a clearer sense of what you actually want.
Cost: $0
Research the building's history and any open city violations
YouBefore making an offer
If you are buying in New York City, check for open building violations on the Department of Buildings and the Department of Housing Preservation and Development websites. Open violations can stay with the building and become your problem after closing.
Cost: $0
Phase 2 of 7 · typically 1-3 weeks
Offer
You and your agent put together a written offer, negotiate price and terms, and start gathering disclosures.
Make a written offer through your agent
Your agentOnce you find a home you want
Your agent submits a written offer to the seller's agent with the price, deposit amount, financing terms, and any conditions you want. In New York the accepted offer is not a binding contract — the lawyers still have to draft and sign a contract — but it sets the framework everyone will work from.
You'll need
- Pre-approval letter
- Proof of funds for deposit
Cost: $0
Decide who pays your agent and how much
Your agentWhen drafting your offer
Since the NAR settlement, offers of buyer broker pay can no longer be shown on the MLS. Your buyer representation agreement already states what your agent expects to be paid. Now you decide whether to ask the seller to cover that amount inside the purchase offer, or to pay it yourself at closing.
Cost: varies
Request the Property Condition Disclosure Statement
Seller's sideBefore signing the purchase contract
For one-to-four family resale homes, New York Real Property Law section 462 requires the seller to give you a Property Condition Disclosure Statement before you sign a contract. Under section 465, a seller can choose instead to give you a $500 credit at closing rather than fill out the form — so do not assume a missing form means there is nothing to disclose.
You'll need
- Property Condition Disclosure Statement (or $500 credit acknowledgment)
Cost: $0
Review the offering plan if you are buying a new condo or co-op
AttorneyBefore signing the purchase agreement (new condo or co-op only)
New York's Martin Act (General Business Law Article 23-A) requires the sponsor of a new condo or co-op to file an offering plan with the New York Attorney General's Real Estate Finance Bureau before selling units. You must receive the accepted offering plan before signing a purchase agreement, and you usually have a short rescission window after delivery — confirm the exact window from your plan.
You'll need
- Accepted offering plan
- Any plan amendments
Cost: $0
Phase 3 of 7 · typically 1-3 weeks
Under Contract
The attorneys negotiate and finalize the purchase contract, you wire the deposit, and you handle the disclosures that have to clear before the contract is fully binding.
Have your attorney negotiate and finalize the contract
AttorneyWithin 1-3 weeks of the accepted offer
In New York the seller's attorney usually drafts the contract and your attorney reviews and negotiates changes before you sign. Brokers and agents are not allowed to draft the contract under New York Judiciary Law section 478. The gap between accepted offer and signed contract is normally one to three weeks, and either side can walk away during that window.
You'll need
- Draft purchase contract
- Property Condition Disclosure Statement (or $500 credit)
- Title report
Cost: Included in attorney fee
Wire your contract deposit to escrow
Escrow / titleOn contract signing
When you sign the contract you wire a deposit — usually 10% of the purchase price in New York — to the seller's attorney escrow account. Under New York Department of State rules (19 NYCRR 175.1), client funds must sit in a separate escrow account, never mixed with the broker's or attorney's own money. Confirm wire instructions by phone before sending money to avoid wire fraud.
You'll need
- Signed purchase contract
- Verified wire instructions
Cost: Typically 10% of purchase price
Review the lead-based paint disclosure for pre-1978 homes
Seller's sideBefore the contract becomes binding (pre-1978 homes only)
Federal law (42 U.S.C. section 4852d) requires sellers of housing built before 1978 to give you the EPA lead hazard pamphlet, disclose any known lead-based paint, and give you a 10-day window to inspect for lead before the contract is binding. If your home is in New York City, the building also falls under Local Law 1, which adds city-level lead hazard rules for units where a child under six lives.
You'll need
- Lead-based paint disclosure
- EPA lead hazard pamphlet
Cost: $0
Confirm flood zone status and flood insurance need
YouDuring contract review
New York expanded flood disclosure rules in 2024. The Property Condition Disclosure Statement now asks the seller about prior flood damage, flood insurance claims, whether the property sits in a FEMA Special Flood Hazard Area, and whether flood insurance is currently in force. Check the answers and cross-reference the FEMA flood map — if you are in a Special Flood Hazard Area and using a federally backed loan, flood insurance is required.
You'll need
- FEMA flood map result
- Existing flood insurance declaration page (if any)
Cost: $0
Submit the co-op board package if buying a co-op
YouWithin 2-4 weeks of signed contract (co-op only)
Co-op apartments are not real property — you are buying shares in a cooperative corporation plus a proprietary lease for your unit. Most co-op boards require a detailed application with financial statements, tax returns, reference letters, and an interview. Approval is not guaranteed even if your contract is fully signed, so build time into your schedule.
You'll need
- Board application
- Tax returns (last 2 years)
- Bank and brokerage statements
- Personal and professional reference letters
- Employment verification letter
Cost: $500-$1,000 typical application fees
Phase 4 of 7 · typically 1-2 weeks
Inspection
Have a professional check the home top to bottom and follow up on anything that could affect safety, cost, or your willingness to close.
Hire a licensed home inspector
InspectorWithin the inspection period in your contract
A general home inspector checks the roof, foundation, plumbing, electrical, heating, cooling, and major appliances and gives you a written report. Be at the inspection if you can — seeing problems in person is more useful than reading the report later.
Cost: $400-$800 typical
Use your 10-day lead inspection window if the home is pre-1978
InspectorWithin the 10-day lead window (pre-1978 homes only)
For homes built before 1978, federal law gives you a 10-day window to test for lead-based paint before the contract becomes binding. You can shorten or waive the window in writing, but you cannot get it back later. Hire a certified lead inspector if there is any reason to worry, especially if a child under six will live in the home.
You'll need
- Lead inspection report
Cost: $300-$500 typical
Ask about underground heating oil tanks
InspectorDuring the inspection period
Underground and aboveground heating oil tanks are common on Long Island, in Westchester County, and in older homes across New York. Old or leaking tanks can create big environmental cleanup bills, and the seller's Property Condition Disclosure Statement asks about them. If a tank is on the property, get it inspected by a contractor who is registered for petroleum bulk storage.
You'll need
- Tank inspection report
Cost: $100-$500 typical
Confirm working smoke and carbon monoxide detectors
InspectorDuring the inspection
Amanda's Law (New York Executive Law section 378) requires carbon monoxide detectors in one and two-family homes and multiple dwellings, within 15 feet of each sleeping area. New York Real Property Law section 464 also requires the seller to certify on the Property Condition Disclosure Statement that working smoke and CO detectors are installed. Check that they actually exist and work.
Cost: $0
Decide whether to ask for repairs, a credit, or to walk
AttorneyAfter receiving the inspection report
Once you have the inspection report, you and your attorney decide what to ask the seller to fix, what credit to ask for, or whether to walk away if the issues are serious. In New York the inspection usually happens before contract signing, so this is also your chance to push for last-minute contract changes.
You'll need
- Inspection report
- Repair estimates (if any)
Cost: $0
Phase 5 of 7 · typically 3-6 weeks
Loan & Appraisal
Lock your rate, send the lender everything they need, and let the appraisal confirm the home is worth what you are paying.
Lock your mortgage interest rate
LenderWithin a few days of contract signing
After you are under contract, ask your lender to lock your rate. A rate lock protects you from rate increases while your loan is being processed. Lock periods usually run 30 to 60 days — pick one that lasts until your expected closing date.
Cost: $0
Let the lender order the appraisal
LenderWithin 1-2 weeks of contract signing
Your lender hires an independent appraiser to confirm the home is worth at least the purchase price. You pay the appraisal fee, usually at the time it is ordered. If the appraisal comes in low, you will need to renegotiate with the seller, bring extra cash, or use the appraisal contingency in your contract to walk away.
Cost: $500-$700 typical
Send the lender your final loan paperwork
YouThroughout the loan-processing period
Your lender will ask for updated pay stubs, bank statements, the signed purchase contract, and answers to any underwriter questions. Respond fast — slow document delivery is the most common reason closings get pushed back. Keep your credit score steady: do not open new credit cards or finance a car before closing.
You'll need
- Updated pay stubs
- Updated bank statements
- Signed purchase contract
- Letters of explanation (if requested)
Cost: $0
Review your loan estimate and closing disclosure
LenderWithin 3 business days of application and 3 days before closing
Federal law requires your lender to send you a Loan Estimate within three business days of your application and a Closing Disclosure at least three business days before closing. Compare the two — fees on the Closing Disclosure should match the Loan Estimate. If anything moved up sharply, ask your lender why.
You'll need
- Loan Estimate
- Closing Disclosure
Cost: $0
Phase 6 of 7 · typically 1 week
Pre-Closing
Tie up loose ends in the last week before closing: walk the home one last time, line up your money, and confirm insurance and any seller withholding.
Do a final walk-through of the home
Your agent24-48 hours before closing
Walk through the home within 24-48 hours of closing to make sure the seller actually moved out, agreed-upon repairs were made, and nothing was damaged on the way out. Test lights, faucets, and appliances. If anything is wrong, raise it before you sign at closing — once you close, it is your home.
Cost: $0
Get certified funds ready for closing
You1-2 days before closing
Your attorney will tell you the exact amount you owe at closing — purchase price minus deposit and loan amount, plus closing costs. Send the money as a wire transfer or bring bank-certified checks. Confirm wire instructions by phone using a number you already know, not one from an email, to avoid wire fraud.
You'll need
- Verified wire instructions
- Photo ID
Cost: varies
Bind a homeowners insurance policy
YouAt least a week before closing
Your lender will not close the loan without proof of homeowners insurance. Shop at least 2-3 carriers, pick a policy that covers replacement cost, and have the insurer send the binder and paid receipt to your lender. If you are in a flood zone, add a separate flood insurance policy.
You'll need
- Insurance binder
- Paid receipt or first-year premium proof
Cost: $800-$2,000 typical per year
Confirm seller withholding if the seller is foreign or out-of-state
AttorneyBefore closing (if seller is foreign or nonresident)
If the seller is a foreign person, federal FIRPTA rules (26 U.S.C. section 1445) require the buyer to withhold 15% of the gross sale price and send it to the IRS — 10% if the home is $300,000 or less and will be your primary residence. New York also requires nonresident sellers to file Form IT-2663 with an estimated tax payment at closing. Your attorney and the title company handle the paperwork, but the IRS withholding liability sits with you as the buyer, so confirm it is being done.
You'll need
- Seller's FIRPTA affidavit or withholding certificate
- Form IT-2663 if applicable
Cost: varies (withheld from seller proceeds)
Phase 7 of 7 · typically 1 day
Closing
Sit down at the closing table, sign everything, hand over the money, get the keys, and have your attorney record the deed.
Attend the closing meeting
AttorneyOn the agreed closing date
New York closings are usually in-person and attorney-led. You, your attorney, the seller and their attorney, a lender representative, and a title company representative all sit down together. You sign the loan documents, the deed transfer paperwork, and any tax forms. Bring photo ID and any documents your attorney asked you to bring.
You'll need
- Photo ID
- Final Closing Disclosure
- Proof of insurance
Cost: $0
Pay closing costs and transfer taxes
Escrow / titleAt closing
At closing you pay your share of closing costs — lender fees, title insurance, recording fees, attorney fee, and prepaid items like property tax and insurance. New York's state real estate transfer tax (0.4%) and the New York City Real Property Transfer Tax (1% under $500,000 and 1.425% at $500,000+ for residential) are normally the seller's obligation. The Mansion Tax — 1% of the sale price for residential sales of $1 million or more, with extra brackets in New York City for sales of $2 million and above — is the buyer's responsibility.
You'll need
- Final Closing Disclosure
- TP-584 transfer tax form
Cost: Typically 2-4% of purchase price (plus 1%+ Mansion Tax if $1M+)
Get the keys and deed
Seller's sideAt the end of the closing meeting
Once everyone has signed and money has changed hands, the seller hands over the keys, garage remotes, alarm codes, and any warranty paperwork. Get a copy of the signed deed and closing statement for your records — you will need them for tax filings and for proving ownership later.
You'll need
- Signed deed copy
- Closing statement
Cost: $0
Have your attorney record the deed
AttorneyWithin a few days of closing
Your attorney or the title company records the deed with the county clerk where the property sits, which puts the world on notice that you own the home. Recording fees vary by county. Keep the recorded deed and the title insurance policy in a safe place — you will need them when you sell or refinance.
You'll need
- Signed deed
- Title insurance policy
Cost: $200-$500 typical recording fees
Sources
- [1] NAR Settlement FAQs – Buyer Agreement Requirements
- [2] NAR Settlement FAQs – MLS Policy Changes
- [3] NY Attorney General – Real Estate Finance Bureau
- [4] NY General Business Law §352-e – Real Property Securities
- [5] NY Real Property Law §462 – Property Condition Disclosure
- [6] IRS – FIRPTA Withholding
- [7] NY DTF Form IT-2663 – Nonresident Real Property Estimated Tax
- [8] NYS DEC – Petroleum Bulk Storage and Underground Storage Tanks
- [9] NYC Department of Buildings – Building Information System
- [10] NYC HPD Online – Housing Preservation and Development
- [11] NY DTF – Real Estate Transfer Tax
- [12] NYC Finance – Real Property Transfer Tax
- [13] NY Real Property Law §443 – Agency Disclosure
- [14] NY Real Property Law §462 – Property Condition Disclosure Statement
- [15] EPA – Real Estate Disclosure for Lead-Based Paint
- [16] NYC HPD – Lead-Based Paint (Local Law 1)
- [17] NY Real Property Law §465 – Effect of Failure to Deliver Disclosure Statement
- [18] NY Executive Law §378 – Carbon Monoxide Detectors (Amanda's Law)
- [19] NY Real Property Law §464 – Smoke Detectors in Residential Construction
- [20] NY Judiciary Law §478 – Unauthorized Practice of Law
- [21] 19 NYCRR Part 175 – Escrow and Deposit Handling
Last updated May 15, 2026