NEW YORK, NY – The attorney review period in New York real estate transactions provides a critical three to five-day window for contract evaluation, but several complications can derail deals during this timeframe. Manhattan real estate attorney Natalia A. Sishodia of Sishodia PLLC (https://sishodia.com/what-can-go-wrong-with-attorney-review/) explains the common problems that arise during attorney review and how buyers and sellers can protect their interests.

According to Manhattan real estate attorney Natalia A. Sishodia, attorney review is a mandatory step in most New York real estate transactions that begins after both parties sign the contract. During this period, each party’s attorney has three to five business days to review and approve the agreement. The contract does not become legally binding until both attorneys approve it or the review period expires without objection.

Manhattan real estate attorney Natalia A. Sishodia emphasizes that one of the most significant risks during this period is that sellers can still accept competing offers. Since the original contract is not legally binding yet, sellers who receive higher bids may switch to a better offer without penalty. This occurs more frequently in competitive markets where sellers continue entertaining multiple offers during the review period.

“During attorney review, the seller can still accept offers from other buyers,” explains Sishodia. “If a higher bid comes in, the seller may accept it and walk away from your deal.”

Contract issues discovered by attorneys represent another common problem during the review period. Attorney Sishodia notes that buyers’ attorneys frequently identify problematic terms including unreasonable closing dates, insufficient time to secure financing, unfair allocation of closing costs, and missing inspection contingencies. Some contracts require buyers to pay transfer taxes that sellers typically pay, while others include clauses that waive important protections.

Sishodia points out that title issues can emerge during the due diligence conducted throughout attorney review. Title searches sometimes reveal liens, judgments, or ownership disputes that must be resolved before closing. In Manhattan, the New York County Clerk at 60 Centre Street maintains real property records that attorneys search to verify a clean title.

For Manhattan transactions specifically, Sishodia notes that attorney review is particularly critical because of the borough’s unique considerations. Manhattan transactions often involve co-ops requiring board approval after contract signing, as well as high closing costs including mansion tax, NYC transfer tax, and New York State transfer tax under Real Property Law § 462.

During the review period, attorneys negotiate several key issues that determine the final terms governing the transaction. These negotiations typically address the deposit due date, scope of inspection, mortgage commitment deadlines, closing dates, closing cost allocation, and contingencies. For Manhattan co-op purchases, attorneys ensure the contract includes adequate time for board approval, which typically takes four to eight weeks to complete.

Sishodia emphasizes that several situations may justify walking away during attorney review. These include sellers who refuse to address serious contract issues, unresolved title problems, changes in the buyer’s financial situation, or inspections revealing major defects that sellers refuse to repair.

Once both attorneys approve the contract or the review period expires without objections, the contract becomes legally binding. At this point, neither party can walk away without penalties unless a contingency allows it. The typical Manhattan closing timeline is 60 to 90 days from contract signing, during which title searches, inspections, and board approval for co-ops occur.

Buyers and sellers are advised to stay in close contact with their attorneys during the review period. For those navigating Manhattan real estate transactions, consulting with an attorney experienced in New York real estate law may provide essential protection during this critical stage.

About Sishodia PLLC:

Sishodia PLLC is a New York-based law firm dedicated to sophisticated real estate transactions and estate planning. Led by attorney Natalia A. Sishodia, the firm represents domestic and international clients in high-end Manhattan real estate matters including co-op and condo purchases, new developments, and complex closings. For consultations, call (833) 616-4646.

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Email: natalia@sishodialaw.com

Website: https://sishodia.com/

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Company Name: Sishodia PLLC
Contact Person: Natalia A. Sishodia
Email: Send Email
Phone: (833) 616-4646
Address:600 3rd Ave 2nd floor
City: New York
State: New York 10016
Country: United States
Website: https://sishodia.com/