The first step in purchasing a home in New York is engaging a Real Estate Broker. Once the purchaser chooses the ideal home, an offer is made to the seller. The offer is officially made by the purchaser by filling out an agreement called a binder and an advance amount of 1% of the offered consideration is deposited with the seller by the buyer as earnest money.

The binder is the basic agreement for a purchaser of a home and requires that various conditions be included. The s conditions required include, the amount of mortgage loan that the purchaser can raise, structural stability of the property based on a report by a structural engineer, pest control inspection reports, water purity in places where the municipal supply does not reach, drainage inspection reports especially in homes that are not connected to the public sewage systems and inspection of radiation levels if any. Once the binder is signed the purchaser should engage a lawyer, a real estate title company or a title trust company to search and give a certification that the property has a clear title. The New York state Insurance Department regulates the fees charged for a title search. Details of real estate title companies and title trust companies are available with the New York Land Title Association, The New York Society of Mortgage Professionals and the American Land title Association. Mortgage companies and banks lend money on the basis of the property having a clear title.

The seller is liable to disclose to the purchaser, any encumbrance on the title such as prescriptive easements and liens arising out of non payment of maintenance services, taxes, previous mortgages, judgments, municipal rates or divorce. Further, the purchaser is required to obtain a title insurance by paying a one time premium under the New York State Laws . The seller's lawyer then draws up and sends the contract to the purchaser's lawyer. The purchaser's lawyer whets the contract. The purchaser then makes a down payment by check which the seller is expected to deposit in a bank as escrow. At this juncture, the purchaser can sort out mortgage applications, arrange for carrying out the required inspections and renegotiate or withdraw from the contract in case of irreconcilable differences. The purchaser will be well served by a mortgage plan that covers a combination of not only the cost of the transaction but also the incidental fees.

A promissory note is signed with the mortgage company by the purchaser which functions as the mortgage agreement. Mortgage Insurance is often waived by mortgage companies if the applicant has a reliable payment history. Once all formalities are concluded the contract is formally signed and sealed for the purchase of the home. This is the closure of the purchase and it is at this time that Attorney and agents fees are payable. The purchaser is required to show the proof of a home owners insurance at the time of closure and leave with the keys to his new home.