Top Legal Issues to Watch for in New York Real Estate Contracts

By Chiariello & Chiariello – Real Estate Lawyers in Glen Cove, NY

At Chiariello & Chiariello, we’ve helped countless clients avoid contract pitfalls and protect their real estate investments. Below, we break down some of the most common legal issues to watch for in New York real estate contracts and how to protect your rights

1. Ambiguous or Missing Terms

One of the most common legal problems in real estate contracts is vague language or missing key terms. A contract should clearly define:

• The purchase price and deposit
• Closing date and possession terms
• Responsibilities for inspections and repairs
• Contingencies (e.g., financing, appraisal)

Even a small ambiguity can lead to major disagreements. Always have an experienced real estate attorney review the contract to ensure everything is clearly spelled out.

2. Failure to Include Contingency Clauses

Contingency clauses allow you to cancel or renegotiate a deal based on specific conditions. The most important contingencies typically include:

• Mortgage contingency: allows the buyer to back out if financing falls through
• Inspection contingency: protects the buyer if major defects are found
• Sale contingency: while rarely allowed in NY, such a contingency can be negotiated to give buyers time to sell their current home

Without these clauses, you could be locked into a contract with no legal escape route. If you’re unsure what contingencies apply to your deal, don’t wait contact us for guidance.

3. Inadequate Property Disclosures

Under New York law, sellers are now required to fill out a detailed disclosure form about the property. Even so, some sellers may try to omit key issues like water damage, foundation cracks, or environmental hazards.

This makes it crucial to conduct thorough inspections and document everything in writing. If you suspect nondisclosure or misrepresentation, a real estate lawyer in Glen Cove can help you explore your legal options. Schedule a consultation to learn more.

4. Breach of Contract and Enforcement

What happens if one party fails to uphold their end of the deal? Whether it’s a buyer backing out after the contract is signed or a seller refusing to make agreed-upon repairs, a breach of contract can delay or derail the entire transaction.

Depending on the situation, you may be entitled to remedies such as:

• Specific performance (forcing the sale)
• Refund of earnest money
• Damages for financial losses

Don’t navigate a breach of contract on your own contact us to protect your legal interests.

5. Title Issues and Liens

Before closing, the buyer’s attorney typically performs a title search to identify any liens, judgments, or ownership disputes that could impact the sale. Common title problems include:

• Unpaid property taxes
• Unreleased mortgages
• Boundary disputes
• Mechanic’s liens

Failing to resolve these issues before closing can result in long-term legal battles. If you’re dealing with a complicated title situation, our Glen Cove real estate lawyers can help resolve it efficiently. Book a consultation today.

6. Misunderstandings About “As-Is” Clauses

Many real estate contracts in New York include “as-is” clauses, meaning the property is sold in its current condition. However, this doesn’t automatically release the seller from liability for known defects they fail to disclose and the exact terms of such a clause should be specifically negotiated.

Buyers often assume “as-is” means they have no legal recourse but that’s not always true. Our attorneys can help you understand what your rights are under an “as-is” contract. If you’ve been misled, contact us to discuss your legal options.

Protect Yourself with a Glen Cove Real Estate Attorney

Every real estate contract should be reviewed by a knowledgeable attorney who understands New York law. At Chiariello & Chiariello, we have over 50 years of experience helping buyers, sellers and developers protect their investments and avoid legal trouble.

Whether you’re preparing to close on a home or navigating a contract dispute, our team is ready to help. Contact us today for a personalized consultation with a trusted Glen Cove real estate lawyer.

About Chiariello & Chiariello
Based in Glen Cove, NY, Chiariello & Chiariello is a full-service law firm offering experienced representation in real estate law, personal injury, and more. Learn more about our firm here.

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