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Buying a first home in New York City rarely resembles the clean and orderly process described in online checklists. The city’s real estate market is dense with unwritten rules, building specific customs, and legal nuances that can surprise even well prepared buyers. Contracts move quickly, competition is fierce, and a single overlooked detail can derail a transaction weeks later.
For first time buyers, the learning curve is especially steep. Many assume that if the price is agreed upon and the mortgage is approved, the rest will fall into place. In reality, New York real estate requires a deeper level of legal awareness long before closing day. Attorneys who work daily in this market often see the same preventable mistakes repeated by buyers who simply did not know what to look for.
Attorney Michael Moshan has spent decades guiding buyers through these complexities. His experience reveals not just where deals go wrong, but how thoughtful preparation can keep them on track. The following are five of the most common legal missteps first time buyers make in New York, along with practical ways to avoid them.
Many buyers believe due diligence begins after a contract is signed. In New York, that assumption can be costly. Legal due diligence often starts before an offer is even finalized, especially in co-op and condominium transactions.
Unlike many other states, New York does not require sellers to provide extensive disclosure forms. Instead, buyers rely on their attorney to investigate building records, offering plans, amendments, financial statements, and board rules. Skipping or rushing this review can mean inheriting problems that are difficult or impossible to fix later.
Moshan notes that buyers often focus on aesthetics while overlooking the legal health of a property. A beautiful apartment can still be tied to weak building finances, pending litigation, or restrictive house rules that affect everyday living.
Proper due diligence includes reviewing the building’s financial reserves, recent capital projects, outstanding loans, and patterns of maintenance increases. It also involves understanding whether the building has the legal authority to impose future assessments. For first time buyers, this information is rarely intuitive, which is why legal review is essential early in the process.
The solution is to involve an attorney before emotions take over. A careful review can identify red flags while there is still time to renegotiate or walk away.
New York real estate contracts may look standardized, but they are anything but generic. Each clause allocates risk between buyer and seller, often in ways that are not obvious to someone reading the document for the first time.
First time buyers sometimes assume that contracts are largely boilerplate and that negotiation is limited to price. In reality, contract terms govern financing contingencies, inspection rights, closing timelines, and remedies if something goes wrong.
Moshan emphasizes that contract review is where buyers gain or lose leverage. “The contract sets the rules for everything that follows,” he explains. “If you do not understand what you are agreeing to, you may discover too late that your protections were limited from the start.”
One common issue arises around mortgage contingencies. Buyers may not realize how narrowly these clauses are drafted, or how easily they can be waived through timing missteps. Another frequent problem involves closing date flexibility, which can affect moving plans, rate locks, and even employment schedules.
Avoiding this mistake requires more than a quick summary. Buyers should insist on a detailed walkthrough of the contract, with clear explanations of what happens under different scenarios. A good attorney will not just point out risks, but explain how those risks align with the buyer’s tolerance and goals.
Co-ops make up a significant portion of New York City housing, yet many first time buyers underestimate how much authority co-op boards wield. Unlike condominiums, co-ops retain broad discretion over who may purchase shares in the building.
Board approval is not a formality. Boards can reject buyers for financial reasons, incomplete applications, or subjective concerns that are difficult to predict. Even well qualified buyers can be delayed or denied if they are not prepared for the process.
Michael Moshan, Attorney often reminds clients that buying a co-op is as much about being approved as it is about affording the apartment. The board package typically requires detailed financial disclosures, reference letters, and personal statements. Interviews may follow, with little guidance on what questions will be asked.
Legal counsel plays a critical role in preparing buyers for this stage. Attorneys help assemble complete applications, flag potential weaknesses, and advise on presentation. They also review proprietary leases and house rules that govern everything from subletting to renovations.
The key to avoiding trouble with co-op boards is respect for the process. Buyers who treat board approval casually often face delays or denials that could have been prevented with better preparation.
Title problems are often invisible until they suddenly are not. First time buyers may assume that if a property is listed for sale, ownership issues have already been resolved. In reality, title defects can surface late in the process and threaten closing timelines.
In New York, title searches examine decades of ownership records, liens, easements, and recorded agreements. Problems can arise from unresolved estates, old mortgages, or boundary issues that were never properly addressed.
Moshan has seen transactions nearly collapse because buyers did not appreciate how complex title issues can be. Resolving them often requires coordination among attorneys, title companies, lenders, and sometimes courts.
Buyers can protect themselves by understanding that title review is not a rubber stamp. It is a critical legal safeguard. Asking questions about what the title report reveals and how issues will be resolved helps buyers stay informed rather than surprised.
Purchasing title insurance is another essential step. While it may feel like an abstract expense, it provides long term protection against claims that could otherwise be financially devastating.
First time buyers often approach the process with a fixed timeline in mind. They expect clear milestones and predictable progress. New York real estate rarely cooperates with that expectation.
Delays can arise from financing, board schedules, appraisal issues, or last minute document requests. Buyers who are unprepared for these disruptions may make rushed decisions or unnecessary concessions.
Michael Moshan stresses the importance of expectation management. “Delays are not failures,” he says. “They are part of the process. The goal is to respond thoughtfully rather than react emotionally.”
Planning for contingencies includes building flexibility into moving arrangements, understanding rate lock expiration dates, and maintaining open communication with all parties. Legal guidance helps buyers evaluate when to push forward and when to pause.
By anticipating delays rather than fearing them, buyers are better positioned to protect their interests and keep perspective during stressful moments.
Buying a first home in New York City is both an emotional milestone and a complex legal transaction. The mistakes outlined above are common not because buyers are careless, but because the system itself is demanding and opaque.
The most successful first time buyers approach the process as an education. They ask questions, seek detailed explanations, and recognize that legal guidance is not an obstacle but a tool.
Moshan’s experience underscores a simple truth. In a market as intricate as New York’s, informed decisions are the strongest form of protection. With careful due diligence, thoughtful contract review, and respect for the unique structures that define city real estate, first time buyers can move forward with confidence rather than regret.
Understanding the rules before playing the game does not eliminate risk, but it transforms uncertainty into informed choice. That shift makes all the difference when the stakes are as high as a first home in New York.
