Real Estate

​The real estate closing process in New York involves a series of steps that occur from the beginning to the end of a property transaction. Here is a detailed description of the process:
 

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Offer and Acceptance

The process typically starts with the buyer making an offer to purchase a property, which includes price, terms, and contingencies. Once the seller accepts the offer, a purchase agreement is created.

Attorney Review

Both parties hire real estate attorneys to review and negotiate the terms of the purchase agreement. During this stage, any necessary amendments or modifications to the contract are made.

Title Search and Examination

The buyer's attorney conducts a thorough title search to ensure there are no outstanding liens, encumbrances, or ownership disputes on the property. A title examination is performed to verify the property's legal status and ownership history.

Contract Signing and Deposit

Once all parties are satisfied with the terms of the purchase agreement, the contract is signed by the buyer and seller. The buyer is typically required to provide a deposit, often held in escrow, as a sign of good faith.

Financing and Mortgage Commitment

If the buyer is obtaining financing, they will work with a mortgage lender to secure a loan. The lender assesses the buyer's creditworthiness, appraises the property, and issues a mortgage commitment letter outlining the loan terms and conditions.

Property Inspections and Due Diligence

The buyer arranges for various inspections, such as a home inspection, pest inspection, and environmental assessment, to assess the property's condition. The results of these inspections may lead to negotiations for repairs or credits.

Contingencies and Waivers

Depending on the terms of the purchase agreement, the buyer may have contingencies for items such as securing financing, satisfactory inspections, or the sale of their current home. If these contingencies are met, the buyer can proceed with waiving them.

Closing Preparation

The attorneys for both parties work together to prepare the necessary documents for closing. This includes drafting the deed, transfer tax forms, and other legal documents required by New York state and local authorities.

Closing Disclosure and Settlement Statement

The lender provides the buyer with a Closing Disclosure, which details the final loan terms, closing costs, and any prorated expenses. The settlement statement outlines all financial transactions related to the closing.

Closing Day

On the scheduled closing day, all parties involved in the transaction, including the buyer, seller, their respective attorneys, and the title company representative, gather to complete the final paperwork and exchange funds.

Signing Documents and Funds Transfer

The buyer and seller sign the necessary documents, including the deed, mortgage note, and other closing paperwork. The buyer provides the funds necessary to complete the purchase, which may include the down payment, closing costs, and prepaid expenses.

Title Transfer and Recording

The deed is transferred from the seller to the buyer, and the transaction is recorded with the county clerk's office. This recording officially establishes the buyer as the new legal owner of the property.

Disbursement of Funds

After the closing, the funds are disbursed to the appropriate parties. This includes paying off the seller's mortgage, settling outstanding liens or debts, and distributing funds to the seller and other parties involved.

Post-Closing Matters

Following the closing, the buyer's attorney ensures that all necessary documents are filed and recorded, and the buyer receives the title insurance policy. The buyer may also need to transfer utilities and update insurance coverage.

The real estate closing process in New York involves multiple legal and financial steps to protect the interests of both the buyer and the seller. It is essential for all parties to work closely with experienced professionals, such as real estate attorneys and title companies, to ensure a smooth and successful transaction.