Found a Home You Love? How to Lock It Down

“The seller accepted my offer. How did someone else end up buying it?” This is one of the most common regrets among New York buyers. The reason is simple: in New York, an “accepted offer” is not a deal.

Why Doesn’t an Accepted Offer Count?

New York law requires a contract for the sale of real property to be in writing and signed by the party to be charged (General Obligations Law §5-703). A broker’s deal sheet, an exchange of emails or a verbal yes generally does not create a binding contract. New York courts have also held that where the parties intend to sign a formal contract, either side may walk away until the signed contract is delivered (Scheck v. Francis, 26 N.Y.2d 466 (1970)).

That means that between the accepted offer and contract signing, the seller can keep showing the home and take a higher offer. You truly “have” the house only when the contract is fully signed and your deposit is in escrow.

Before You Offer: Be Ready

Good homes often draw multiple offers within days. If you start preparing after you find the one, you are usually too late.

1. A mortgage pre-approval letter, which carries more weight than a pre-qualification;
2. Proof of funds, such as bank or brokerage statements covering the down payment and closing costs;
3. An attorney lined up in advance, who can start reviewing the contract draft the day it arrives;
4. An inspector on call, ideally able to inspect within a day or two (see Part 1);
5. For a co-op, a head start on the board package, including tax returns, financial statements and reference letters.

When You Offer: Why Should the Seller Pick You?

Price matters, but it is often not the only factor. Sellers care about certainty and speed:

• Clean terms. Fewer contingencies reassure a seller. But don’t casually waive the mortgage contingency unless you can truly close in cash;
• A larger down payment, which also improves your chances with a co-op board;
• A flexible closing date that fits the seller’s move. If needed, allow a short post-closing rent-back, documented in writing by your attorney;
• Show you can execute. Tell the other side your attorney and loan officer are ready and you can sign within days.

About “love letters” to the seller: Be careful. Letters that mention family, religion or national origin can raise fair housing concerns, and many brokers now advise against them.

After Your Offer Is Accepted: Speed Is Everything

1. Send your attorney’s contact information to the listing broker the same day;
2. Complete the inspection within a day or two;
3. Have your attorney finish due diligence quickly: the contract draft, title, Certificate of Occupancy and violations, and for condos and co-ops, the building’s financial statements and board minutes;
4. Sign and deliver the deposit promptly. Downstate, the deposit at signing is usually 10% of the price, held in escrow by the seller’s attorney.

Which Contract Terms Are Worth Holding Onto?

Fast does not mean agreeing to everything. These terms are worth keeping:

• Mortgage contingency, with a deadline to obtain a mortgage commitment, commonly about 30 to 45 days and negotiable;
• Co-op board approval contingency, so that if the board rejects you, the contract is cancelled and your deposit returned;
• Vacant delivery, requiring the home to be delivered “vacant and broom clean” at closing. This connects directly to Part 7, “Bought a Home and Found a Tenant Inside”;
• Systems in working order at closing, including plumbing, electrical and heating;
• A right to a final walk-through before closing.

Attorney’s Insight

In New York, winning a house is often less about the highest offer and more about who signs a clean, enforceable contract first. Our advice to buyers:

• Speed and protection can coexist. A well-prepared attorney can review a contract within a day or two while still protecting the mortgage contingency, board approval and vacant delivery. Giving these up to be “fast” can cost you your 10% deposit if something goes wrong;
• Expect a last-minute price bump. Before the contract is signed, a seller who receives a higher offer may legally ask you to raise yours. Know your ceiling and decide in advance whether you will match;
• Never pay a “deposit” to an individual before signing. In New York, the deposit customarily goes into an attorney’s escrow account. A request to wire money to an individual or an unfamiliar account is a common sign of wire fraud. Always confirm wiring instructions with your attorney by calling a number you already know.

Attorney’s perspective

In a competitive market, speed matters. We review the contract and propose changes quickly, so you can lock in the home without giving up the protections you need.

For advice about your own situation, call +1 718-218-5805 or schedule a consultation. We meet clients in Flushing and Manhattan, in English or Chinese.

Series overview

This article is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. For advice about your situation, please contact us.

Back to all articles