A PRACTICAL GUIDE FOR THE FIRST TIME HOME BUYER

I. Attorney's Qualifications and Experience

A. The practice of this law firm emphasizes real estate law (e.g. Purchase and sale of one and two family homes, cooperatives and condominiums)

B. The law firm is made up of fourteen (14) Attorneys, five (5) Partners and nine (9) Associate and Of Counsel Attorneys.

C. The combined legal experience of the Attorneys in the firm is in excess of one hundred fifty years.

D. I have been an Attorney since 1967. During this time my law practice has emphasized real estate law.

II. The necessity of having an Attorney represent the first time home buyer in the home buying process:

a. This purchase is probably one of the biggest purchases made by a person in his/her lifetime, is a complicated legal process, requiring the services of an experienced Attorney to protect the rights of the purchaser.

b. The legal and financial responsibilities of the home buyer are as follows:

1. Identify the Owner and the property and determine the following :

|i| Length of time lived in the property.

|ii| Inquiries about neighbors and/or the community.

|iii| Inquiries about shopping facilities and places of worship.

|iv| Inquiries about schools.

|v| Inquiries about the condition of the property. Procurement of a "Property Condition Disclosure Report" for one to four family dwellings. A Property Condition Disclosure Report is not required in the purchase of Condominium unit or Cooperative apartment or properties in a Home Owner's Association.

|vi| Inquire about violations (e.g. lead based paint, mold, asbestos, etc.).

|vii| Engage the services of a professional Engineer to inspect the property.

III. Selection of an Attorney

a. Select an attorney by experience. The attorney must be experienced in the purchase and sale of real estate in New York and in the area in which you are purchasing the home.

b. Locate an attorney (i) by recommendations of friends, relatives, financial advisors or (ii) bar associations.

c. Contact the attorney and interview him/her regarding experience and fees.

d. Do not hire an attorney suggested by the Seller. These persons may be highly qualified professionals, but may have a conflict of interest.

IV. The Attorney's Role in the Purchase of a Property

a. Review of the Binder Agreement.

b. Review of the Engineer's Report.

c. Review and negotiation of the contract of sale.

d. Assistance in the application for and procuring of a mortgage and review of the mortgage commitment.

e. Review of the Title Report (e.g. deffects in Title, Survey, Certificates of Occupancy, etc.).

f. Review of the closing documents and clearance of title prior to closing.

g. Appearance at the closing, review of the closing documents, mortgage documents and closing of title.

h. Post-closing review and procurement of deed, mortgage and other closing documents evidencing the transaction.

V. Preparation for Closing.

a. Pre-closing inspection of the property to insure compliance with the contract fo sale.

b. Preparation of documents and/or information required pre-closing by the mortgage lender (The Bank).

c. Procurement of Home Owner's Insurance naming the mortgage lender (The Bank) as provided for in the loan commitment.

d. Compliance with the terms and conditions of the loan commitment required pre-closing.

e. Preparation for closing by calculating closing costs, closing fees, taxes, escrows and balance due of purchase price.

f. Preparation of documents and/or identification required at closing.

VI. The Role of the Bank's Attorney at the Closing.

a. The necessity of the Bank to assign an independent attorney for closing and payment of the bank attorney's fee by Purchaser/Borrower.

b. Review of title report to insure clear title sufficient to protect the Bank's security interest on and after the closing in the form of a mortgage and security agreement. The bank receives title insurance at closing, which is paid for by the Purchaser-Borrower.

c. Preparation and execution of closing documents on behalf of the Bank (e.g. mortgage, note, loan disclosure and calculation of loan closing costs).

d. Disbursement of mortgage proceeds at closing and representation of Bank at closing.

e. Bank's closing costs :

|i| Origination fee (points).

|ii| Application fee.

|iii| Appraisal fee.

|iv| Credit report fee.

|v| Flood certification fee.

|vi| Bank Attorney's fee.

|vii| Tax service fee.

|viii| Pre-paid interest.

|ix| Private mortgage insurance.

|x| Tax escrows.

|xi| Insurance escrows and pre-paid insurance policy.

|xii| Title company expenses:

(a) Title insurance

(b) recording fees and charges.

f. Escrows for taxes, insurance and water & sewer charges.

g. Closing Costs.

a. Title company expenses.

|i| Recording fees.

|ii| Title insurance.

|iii| Mortgage tax.

|iv| Survey charges.

|v| Title search charges.

b. Adjustments due to the Seller.

|i| Property tax reimbursement.

|ii| Personal property adjustments.

|iii| Heating, oil and/or repair adjustments.

h. Purchaser's Attorney's fees

a. One and two family house, approximately $1,000.00

b. Cooperative or Condominium, approximately $850.00

CONCLUSION:

1. Hire competent professionals (e.g. real estate broker, attorney, banker and title insurance company).