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WHY IS HIRING A REAL ESTATE ATTORNEY NECESSARY WHEN CLOSING ON A HOME?

Home » Real Estate Law » RESIDENTIAL CLOSING ATTORNEY IN NEW YORK » WHY IS HIRING A REAL ESTATE ATTORNEY NECESSARY WHEN CLOSING ON A HOME?

WHY IS HIRING A REAL ESTATE ATTORNEY NECESSARY WHEN CLOSING ON A HOME?

A lot of people do not understand why an attorney is needed whenever a home is sold or bought. The closing and contract process can actually be quite tedious and long-winded. An attorney that is well-versed in property practices can simplify the entire experience, as well as expedite it. Rozhik Law Firm PLLC represents clients from start to finish of the closing process.

Besides the seller’s and buyer’s lawyers, an attorney that represents the realtor and lender will probably be present during closing as well. For the most part, a title closer clarifies any final objections there are to the home’s title insurance. They will also establish the amounts to be paid off, as well as prepare documentation that needs to be filed. In the meantime, the seller’s and buyer’s attorneys will establish if any credits are due to the parties involved. The attorney representing the lender will then put together a customized closing statement outlining all closing costs involved. They will also help get those funds to whomever the purchaser is. The attorney representing the buyer will go over what the mortgage documentation entails as the buyer is executing them. The attorney representing the seller will then put together property transfer tax and deed documentation.

The lawyers at Rozhik Law Firm PLLC have comprehensive experience when it comes to house closings. They have represented both sellers and buyers over the years. Each of the firm’s experts work tightly with clients throughout the entire closing process. They will make sure that each client has the materials necessary, and ensure that they understand the significance of the materials involved. The firm will ensure that the transaction is finalized as efficiently and quickly as possible for the sake of saving you both money and time.

RESIDENTIAL REAL ESTATE ATTORNEY FOR SELLERS:

  • Property contract review, preparation, and negotiation.
  • Explaining to a seller what the property contract entails.
  • Resolving any problems (which includes termite damage, repair issues, etc.) before closing.
  • Correspond with the attorney representing the buyer.
  • Prepare for closing.
  • Represent during closing.

An Instructional Guide for House Sellers

In the city of New York, the property sale process can be somewhat complicated both from a legal and practical standpoint. The guide below can help sellers through this real estate endeavor. Keep in mind that all deals are unique. These steps are a basic rundown of what the average sale process involves. If you have any questions, we encourage you to get in touch with us.

FIRST STEPFINDING A BUYER AND ACCEPTING THEIR OFFER

The initial step involved with property transactions involves finding buyers and accepting their offers. If the property was listed through a realtor, or if the property is being sold without involvement of a broker, the legal work that we perform will start once a buyer is found.

Nothing should be put in writing right after a buyer is found, though. Doing so could inadvertently create a legally binding contract. For the most part, a realtor will ask you to sign either a contract or buyer’s “offer.” This should not be done without first speaking with a professional real estate lawyer.

SECOND STEPHIRING AN EXPERIENCED REAL ESTATE LAWYER

After the buyer’s offer is accepted, you will need to retain the services of a professional real estate lawyer. In the city of New York, real estate sellers and buyers usually employ the services of an attorney. Their job involves navigating parties involved through the process, as well as handling all of the paperwork involved.

When you are scouting for a lawyer, ensure that they have extensive experience dealing with closings. Rozhik Law Firm PLLC has handled hundreds of individual property closings, and does so on an annual basis. We are more than qualified if you need representation – feel free to get in touch with us at your convenience.

THIRD STEP – LET THE BUYER CONDUCT THEIR DUE DILIGENCE

Grant an inspector access if a buyer requests a property inspection. Once the inspection begins, some faults inside the property may be discovered. This will give the buyer an opportunity to request certain repairs to be made before closing. Both the buyer and you must then be in agreement on which types of repairs will be made, and which ones will not.

FOURTH STEP – SIGNING THE CONTRACT WITH GUIDANCE FROM YOUR REAL ESTATE ATTORNEY

Either the realtor or you will need to give us some information so we can put together a sale contract. Once we do, a contract will be drawn up as per the information given to us. This seller-friendly document will then be sent to the attorney representing the buyer.

The attorney will then review all of the contract’s terms and, if necessary, conduct negotiations. These terms will then be discussed with you. Once all parties involved are in complete agreement, 4 (four) copies will be made of the sale’s contract after the buyer puts his/her signature on it. These contracts will then be mailed out, and a down payment will then be sent to our offices. Once the contract is received, a schedule will be made for you so that you can add your signature to it. Alternatively, we can either email or mail that contract over to you, assuming a signature is needed. After the applicable contract is signed, the applicable down payment will then be deposited into an escrow account. 2 (two) completely executed contracts will then be mailed to the attorney representing the buyer.

FIFTH STEP – HAVE PATIENCE WITH THE BUYERS REAL ESTATE ATTORNEY

Once the attorney representing the buyer receives the executed contract, these conditions will need to be completely satisfied:

  • The attorney representing the buyer will order at least one title search in order to make sure that the property’s title is completely clean. Title searches take between 5 and 10 days (not including weekends). If any problems come up about the title, then we will do what is necessary to rectify them. This could add more time to the process based on how severe the title issue is.
  • If the buyer is seeking financing, then they will need to obtain their loan through a lender, which starts with an application. It might take anywhere between 45 and 60 days before a loan is cleared.
  • If the property you’re selling is a co-op, then the buyer will need to fill out an application directly to the applicable co-op board, but only after they have been approved for financing. Dealing with the board could add another 30 days or more, as they need time to either deny or approve an applicant.
  • Your belongings will need to be vacated from the premises in order to showcase the property as a unit in clean condition.

WHAT IF A CLEAN TITLE IS INVOLVED?

If a clean title is involved, then the buyer will get financing once the board approves them (assuming the sale involves a co-op property). You will need to move right out of the place by a certain day (or be ready to do so). We can help schedule a time for closing when you are ready. Here are some average time frames involved with closing:

These are merely average time frames based on the experiences that we have had:

  • Sale of the house with cash – 20 days.
  • Sale of a condo with cash – 25 days.
  • Sale of a co-op with cash – 45 days.
  • House sale (financing included) – 60 days.
  • Condo sale (financing included) – 60 days.
  • Co-op sale (financing included) – 90 days.

SIXTH STEP – BOOKING A CLOSING

After the buyer is prepared to close (and their bank is just as ready), we can book a closing for you. It would be worth your while to plan this in advance for the sake of establishing when you can vacate the premises. The property will be deemed vacant during the actual closing.

SEVENTH STEP – MOVING OUT

The premises must be “broom clean” and “vacant” at closing (unless otherwise stated in your contract). In other words, occupants cannot be on the premises by this point. All personal items – including furniture – must be removed as well.

EIGHTH STEP – ATTENDING THE CLOSING

Closing can be described as a type of “meeting,” where a deed (and/or a stock certificate if a co-op is involved) and similar legal documentation will be issued to a buyer. In return, money will be transferred to a seller.

Here are the individuals that typically attend a closing:

  • Real estate attorney representing the buyer.
  • Real estate attorney representing the seller.
  • Attorney representing the buyer’s financial institution.
  • Attorney representing the seller’s financial institution (if co-op transactions are involved).
  • Title closer (only for transactions of a non-co-op nature).
  • Property brokers.
  • Managing agent (only for co-op transactions).

CLOSING TYPICALLY OCCURS AT THE REAL ESTATE ATTORNEY’S OFFICE

Customarily, a closing takes place at an attorney’s office, whether it is the one representing a buyer’s bank or the seller. When co-op transactions are involved, a closing will need to transpire at a managing agent’s office.

Here is what our office covers when residential closings are taking place:

  • Real estate sale agreement review and drafting.
  • Title report reviews.
  • Building department record reviews.
  • Building plan and survey reviews.
  • Offering plan reviews.
  • Outstanding violation reviews issued by the Department Of Housing, Preservation, and Development.
  • Legality review of property structures involved.
  • Acquisition of New York-based residential property.
  • Checking to see if any municipal violations, ECBs, liens, judgments, franchise taxes, real estate taxes, or water taxes have been unpaid.
  • Property refinancing.
  • Mortgage assignments.
  • Real estate transaction Power of Attorney.
  • Deed transfers.
  • Lien and title search review.
  • Rate modifications.
  • Builders mortgages.
  • Equity lines.
  • Private lending.
  • Offering plan drafting.
  • Representation of institutional lenders.
  • Free estimate of closing costs.
  • Title insurance purchasing and claims.
  • Contract assignments.
  • Dismissal of mortgages and liens.
  • Enforcement of sale rights contracts.

Get in touch with us today for more information about setting up your home’s sale.

 

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ATTORNEY ADVERTISING. Information presented on this site should NOT be construed to be formal legal advice nor the formation of a lawyer or attorney client relationship. Using the advice provided on this site without consulting a lawyer can have disastrous results. Prior results do not guarantee similar outcomes. This web site is not intended to solicit clients for matters outside of the State of New York, although we have relationships with attorneys and law firms in states throughout the United States.