Hey guys, is it true that in NY state the seller HAS to have a lawyer to complete the transaction? If so, how can I realistically attempt to wholesale a property if the lawyer will fight for 6-7% earnest money? The only thing I can think of would be transactional funding, but I’m not entirely sure.
I’ve been thinking of going out of my market (Hudson Valley) because prices are way too high here now, but I just want to know in general. Anyone have experience with wholesaling in NY state?
Hi,
Yes, New York is known as an "Attorney Closing State" in other words a real estate closing (Sale & Purchase) must be handled by a New York State Bar Attorney in Good Standing! This is for all real estate transactions.
It still cost’s almost exactly the same fee’s and cost’s of conventional Escrow / Title transactions but done by an attorney!
The Lawyer has nothing to do with earnest money or contract terms and conditions they are only handling the closing documents and procuring title insurance and recording after closing.
If the seller agrees to a specific amount of earnest money then escrow / title (In New York known as Attorney Closing) must process the transaction even if it’s $10 (Ten Dollars)
You wholesale by assignment or by using transactional funding and both are legal in any state!
GR
Thank you for confirming this for me Gold River, I appreciate it a lot! You have no idea how much that put me at ease, I can now focus on my marketing! 