Legal Question in Real Estate Law in New York

Re: binder requirements

I practice up here. Such a "law" is nonsense. Now, the broker wants the binder to "tie up the sale" but the broker is required to advance your offer to the seller, with or without the binder, and you have the right to be there when the offer is presented by the broker to the seller, to explain your side of it, if need be.

Call with any questions.

Good Luck

RRG

Re: binder requirements

There is no "county law" requiring a binder.

Re: binder requirements

There is no such law. However, it is customary in the northern part of the state to do so. Make sure any binder agreement that you might sign is subject to your attorney's approval.

Debra Palazzo

Re: binder requirements

Not only is there no such law, as everyone else seems to agree on, but it is generally not in your interest to sign a binder or an offer. Ideally, you should go straight to the contract stage after your oral offer is accepted and an inspection has been done to your satisfaction.

Having said that, it is a common practice in some Upstate NY counties for brokers to demand binders and small amounts as deposits to deliver offers to the seller. Both binders and amounts paid as deposits are, however, negotiable.

As a practical matter, in this "seller's market," some buyers choose to go with the approach dictated by the broker. If you do, make sure that the binder offers you at least some protection (that a contract would otherwise do in a much more comprehensive way):

* that it provides for refund of your deposit if the seller rejects your offer or, at the latest, by a certain date;

* that it makes the broker's firm a trustee for your funds to be kept pending the execution of a contract or rejection of your offer; and

* that it makes your offer subject to the main buyer's contingencies (engineering inspection, financing, etc.) to enable you as the buyer to "get out" of the deal if necessary.

I also maintain an office in the area (Northern Westchester) so if you have further questions, feel free to call me at (914) 739-1600.