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Selling a home in NYC can be a long process but once you’ve found an offer your willing to accept you can move onto the next step. Completing a deal sheet. If you are unfamiliar with the closing process and have never compiled a deal sheet, this article should clear everything up. Of course, if you’re working with an agent, it won’t present many problems and can be drafted by them. Still, it helps to know the process and what goes into one.
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What is a deal sheet?
A deal sheet is merely an Excel or Word document that includes a summary of the deal. The reason for it is not to “lock-in” a deal but show that you’re serious about closing and want to move ahead with all. The thing to keep in mind is that this document is non-binding and shouldn’t be signed until it’s been run by your listing agent and attorney first.
If you are managing your sale through an Agent Assisted FSBO you will be required to assemble the deal sheet on behalf of the listing agent. If working with a full-service listing agent (as 99% of NYC deals are) then they can assemble and circulate the deal sheet on your behalf. Once an accepted offer has been reached the listing agent will draft the deal sheet. After it’s been reviewed by the buyer’s agent, it will be forwarded to all parties involved. Once everyone is happy the seller’s attorney can begin drafting the contract of sale.
What goes into a deal sheet?
The key things that any NYC deal sheet should include are:
- Terms of the sale (price, down payment percentage, contingencies, anticipated closing date)
- Specific information about the property (common monthly charges, number of shares in the case of a co-op)
- Contact details for all parties involved (purchaser, seller, both attorneys, brokers and the lender)
Also, the deal sheet should include the following information from the buyer and seller: name, current address, social security number, email, contact phone and fax number. It should also include the following information from the attorney: firm name, attorney name, mailing address, email, office phone and fax number.
The same goes for the brokers involved in the deal. Ensure that the deal sheet includes their name, firm name, firm address, agent license number, commission split, firm license number, email, office phone, cell phone and fax number.
Lastly, the deal sheet should include all the terms of the proposed transaction.
- Purchase Price – ensure that the proposed price of the property is included. If the price consists of any extra items, such as furniture, it should be added as well.
- Closing Date – if either the buyer or seller has any stipulations for a particular closing date it should be included. Otherwise, it’s okay to just state the standard 60-90 days for a financed deal or 30-60 days for an all-cash or non-contingent deal.
- Financial Information – if it’s a financed deal, ensure that the percentage down that the buyer gave on their offer is included.
- Exclusions/Inclusions – if anything is being included in the sale, such as furniture, it should be stated.
- Flip Tax – if this is a co-op deal, include the buildings flip tax. This is usually either a percentage or a per-share dollar amount.
- Number of Shares – for a co-op deal, list the number of shares allocated for the specific lot.
What to do with a completed deal sheet
The listing agent ensures everything is in order and sends it on your behalf to both attorneys, the buyer’s agent and yourself. Once circulated, the attorneys will contact each other to begin the due diligence and contract process. As things move forward, you can expect your attorney to contact you and explain the next steps as you move to close the sale.