No. New York law does not require you to hire a lawyer to buy or sell a home, and you are allowed to handle your own purchase or sale. In practice, though, most New York buyers and sellers do use one, especially in New York City, on Long Island and in Westchester. The reasons are practical: your real estate agent, the title company and the bank’s lawyer are not allowed to do the legal work for you, and in much of the state the whole deal is set up to run through attorneys.
One exception: if the sale needs a court’s approval, as some estate sales do, it goes through a court process (see probate and real estate in New York).
Why most people use a lawyer anyway
Your real estate agent can’t write your contract. New York limits what agents and brokers can do. They can fill in the basic details on a standard form, such as names, price and closing date, but they can’t write legal terms, give legal advice or charge you to prepare the contract (NYS Department of State guidance).
The title company doesn’t represent you. The title company searches the property’s records and insures the title. It can tell you what it found, but it won’t tell you whether to accept a problem or demand that the seller fix it (see what does a title company do). The title closer who comes to the closing works for the title company, not for you.
The bank’s lawyer works for the bank. If you’re getting a mortgage, the lender usually has its own attorney. That lawyer protects the loan, not you.
Downstate, the deal runs through attorneys. In NYC, Long Island and Westchester, the contract is customarily drafted or finalized by the seller’s attorney, and the seller’s attorney holds your down payment in escrow.
What a real estate lawyer does
For the buyer:
- Reviews and negotiates the contract, including what happens if your financing falls through or the inspection turns up problems
- Orders the title search and reviews the title report and survey
- Pushes the seller to fix title problems before closing, or negotiates money held back to cover them (see open items found days before closing)
- Attends the closing with you
For the seller:
- Prepares the contract and holds the buyer’s down payment in an escrow account
- Prepares the deed and the transfer tax forms
- Orders the payoff letter for your mortgage and works to clear title problems on the seller’s side
For a full breakdown of who does what, see title company vs real estate attorney.
How it works where you live
Closing customs differ between downstate and upstate New York. This summary comes from the New York State Bar Association’s county-by-county practice surveys, last updated between 2017 and 2019.
| Area | Who holds the deposit | Who writes the contract |
|---|---|---|
| NYC, Long Island, Westchester | Seller’s attorney | Usually the seller’s attorney |
| Albany, Buffalo, Rochester areas | Agent or broker | Real estate agent, on a form |
NYC, Long Island and Westchester. You agree on a price, but nothing is binding yet. The seller’s attorney sends a contract, your attorney negotiates it, and the deal is only final when both sides sign. At signing, the buyer usually pays a deposit of 10% of the price, which the seller’s attorney holds in escrow.
Upstate. In the Albany, Erie (Buffalo) and Monroe (Rochester) counties surveyed, buyer and seller sign the agent’s contract first. It’s usually “subject to attorney approval,” which gives each side’s lawyer a few days to approve or reject it. New York’s highest court has said that, unless the contract limits the approval, either lawyer can reject it for any reason, or none (2008 Court of Appeals decision).
The bank’s lawyer is not your lawyer
When you finance a purchase, the lender’s attorney (often called the bank attorney) prepares the loan papers, checks that the title meets the lender’s requirements and controls the release of the loan money. You may be asked to pay that lawyer’s fee. That’s allowed, as long as the fee covers work actually done and you’re told in advance how it’s set (NYSBA ethics opinion).
That lawyer represents only the lender. They won’t review your purchase contract or advise you on problems in the title report.
Buying or selling a co-op or condo
A co-op purchase is a purchase of shares and a lease, not real estate with a deed, and it needs the co-op board’s approval. Under the standard co-op contract, the buyer must submit a complete board application within 10 business days after getting the signed contract, or by a different deadline if the purchase is financed, and must attend any interview the board asks for (2023 co-op contract form). Condo resales use their own standard contract. Both forms are published by the New York City Bar Association. For the records a co-op buyer should check, see buying a co-op in NYC.
Can you buy or sell without a lawyer?
Yes. If you do, you take on the work a lawyer would otherwise do, and the other professionals in the deal can’t step in for you:
- The contract. Your agent can only fill in a standard form. You decide what terms you need.
- The seller’s disclosure. If you’re selling a one-to-four family house, you must give the buyer the Property Condition Disclosure Statement before the buyer signs the contract (New York’s disclosure law). Co-ops and condos are excluded, and so are some transfers, such as sales by an estate’s executor (related exemptions).
- The deed and the paperwork. The deed, the transfer tax form and the property transfer report still have to be prepared correctly and accepted for recording (see Long Island land records and recording in Westchester).
- The title report. You’ll need to read it yourself and decide which problems to accept and which to make the seller fix.
- The deposit. With no seller’s attorney, there’s no attorney escrow account. The contract needs to say who holds the deposit and when it’s released. New York also doesn’t allow closing protection letters, so who holds the money matters.
- The loan. The bank’s lawyer still represents only the bank.
If only one side has a lawyer, that lawyer works only for their own client. A lawyer can represent both buyer and seller only if they reasonably believe they can serve both well and each side gives informed consent, confirmed in writing (lawyers’ conflict-of-interest rules).
What it costs
Lawyer fees for a home purchase or sale are set by agreement between you and the lawyer. In most cases where the fee is expected to be $3,000 or more, New York court rules require a written engagement letter before the work starts. It covers what the lawyer will do, the fee and expenses, and billing (court rules on engagement letters). Before you sign it, check what’s included: contract negotiation, title review, attending the closing and handling any money held in escrow after closing.
Official sources
- Judiciary Law § 478 (practicing law without admission)
- Judiciary Law § 484 (only attorneys may be paid to prepare real estate documents for others)
- Judiciary Law § 495 (title insurer exception)
- Real Property Law §§ 462 and 463 (Property Condition Disclosure Statement; exemptions)
- NYS Department of State, Legal Memorandum LI04: brokers and the unauthorized practice of law
- NYS Attorney General Formal Opinion 96-F11 (brokers preparing contracts)
- Moran v Erk, 11 NY3d 452 (2008)
- 11 NYCRR § 35.1 (title closer definition)
- 22 NYCRR § 1215.1 and § 1215.2 (letters of engagement)
- NYSBA Ethics Opinion 438 (lender’s counsel fees paid by borrower)
- Rule 1.7, NY Rules of Professional Conduct (conflicts of interest)
- NYSBA Residential Real Estate Practice Guide (county closing customs)
- New York City Bar Association, real estate contract forms