I live in California and am a broker here. We are relocating to NYC and I am reading up on the differences

Bay Area Broker
Broker
Los Gatos, CA

between how transactions are done on each coast.

I'm seeing a lot of differences. For instance, when we sell a property here, we use an escrow company to handle funds/contract and title insurance to ensure good title. The escrow company is a neutral 3rd party.

I understand that in NY, buyers and sellers use attorneys/lawyers instead of escrow.

What is the purpose of using an attorney? I see from this site that attorney fees are typically higher than our escrow fees and that attorneys/lawyers are often accused of bungling contracts, leading to loss of deposits and other problems.

Can a buyer/seller in NY skip using an attorney and hire an escrow company instead? Do attorneys/lawyers carry E&O insurance in case they do in fact bungle a transaction?

Thanks much everyone! I look forward to hearing your replies.

Answers (3)
Luis Fernandez
Agent
10710

Hi in NYC most people will use an attorney you can opt to represent yourself. I have been in the business for 7 years and have had a handful of people representing themselves. Here in NY agents dont write contracts (upstate NY its different).

Luis Fernandez, ABR, CIPS, GRI, QSC, SRES, Top 1% of Westchester Brokers
The Luis Fernandez Sales Team
Keller Williams Realty Group
760 White Plains Rd
Scarsdale, NY 10583
luis@lowerwestchesterny.com http://www.lowerwestchesterny.com

Fri Apr 10 2009, 08:20
Vicky Chrisner
Agent
Leesburg, VA

I have placed several referrals with agents in NYC, and I suspect you will find even more differences than the ones you've mentioned. Logistical and practical challenges... like MANY MLS systems. In attempting to place referrals, it seems that agents work very small areas - I guess to avoid spending all their time trying to get from one place to the other. So, buyers already need to know where they want to look to find a place - before they hire an agent!

Also, I think that maybe less people use buyers agents, and more go straight through the listing agents. What a shame. A first time buyer could be eaten alive. Also, my impression is that cooperating brokers aren't really so cooperating, it is really dog eat dog. Given that agents work such small areas, I would personally work with a team - either official team or created network, so that if buyers think they want one area and decide later they want another - we'd constantly benefit from reciprocal referrals. I am yet to find anyone that works that way there.

From what I know about CA, I could work there. I could work in NY, outside the city. But, from what I know about NYC I couldn't. As close as I live, I've only been THROUGH NYC once, and have had little desire to even visit. I think I'd be a fish out of water - even on a vacation. Personally, I find it all intimidating. So, my prayers will be with you.

Fri Apr 10 2009, 05:13
Richard V Hamil...
Agent
10011
FIRST ANSWER

Well Bay Area, Lawyers write the laws! Nobody is required to use an attorney at all, but they will find it hard to navigate the process without one.
One nice thing is in NY we (agents) are well insulated in the process, the contracts state that no representation we have made survives the contract signing, that the contract embodis the entire agreement. THis does NOT mean we can get away with willful misrepresentation, btu legally we don't negotiate contracts. It also means we do not have a 'deal' until the contract is signed by both parties, no binders, no coomittment until that is done. Not sure about lawyers having E&O Insurance, but we as agents in ourt agency do...not all do.

If you come here to be an agent a few hints, go to a larger firm where you have all the extensive marketing and the credibility that comes from being with one of them, make sure it is a REBNY firm (Realtor is nothing in Manhattan) and be prepared, it is a tough market to make it in, but if you can make it herem, you can make it anywhere,,,its up to you New York...New York!

Thu Apr 9 2009, 22:09

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