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[NYC] Advice on mortgage contingency and post-closing possession agreement

Background: First time homebuyer, buying in NYC. Because the house was extremely desirable, we were forced into into a dual agency situation. Our lawyers have been in negotiations for more than a week now.

A few things that I would like advice on:

1) Seller's lawyer has language in the contract that says that if anything falls through between mortgage commitment and closing, then sellers have the right to keep our deposit (10% on the offer). My agent friend says that this is common legalese in CA but the culture there is that no seller with an experienced agent actually upholds this because sellers wouldn't want to have their house on hold in litigation. My lawyer wants to change the language so that we're protected until the mortgage is secured, but the seller's lawyer refused. Is my lawyer being an alarmist?

2) Sellers asked for a >3-month post-closing possession. We have negotiated the terms and feel comfortable with it, as long as we're truly protected. However, I've heard the agreement is potentially problematic for few reasons: (1) getting home insurance can be tricky; (2) because of the length of time, bank might not be ok with it and we might be establishing a landlord tenant relationship even though the contract says we won't (state/city law's can overrule?). Loan officer at Wells Fargo said it was ok. Any advice?

3) How long should these negotiations typically take, especially with a complicated post-closing possession agreement? And with the sellers counteroffering every step?

submitted by /u/realestate_anon
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source https://www.reddit.com/r/RealEstate/comments/e3eh25/nyc_advice_on_mortgage_contingency_and/
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