Real estate

Buying a home in New York.

Issue

My offer was accepted. Am I in contract?

Rule

In much of New York, especially downstate, an accepted offer isn't binding. The deal becomes binding when both sides sign a contract of sale, usually negotiated by attorneys.

Translation

Accepted is flirting. Contract is commitment.

Buyers commonly do the home inspection before signing, because once you sign, walking away can cost you your down payment. The down payment is typically held in escrow until closing.

Look for a mortgage contingency, which lets you exit if your financing falls through, and pay attention to its deadline.

Before closing, a title search confirms the seller can actually transfer clean ownership, and title insurance protects you if something was missed.