Congratulations! You are almost to the finish line of your Condominium purchase. Please take a moment to review the information below so that you may better understand what to expect as we approach your closing day. Please note that some of the specifics described below may change based on the particular circumstances of your transaction. Please let us know if you have any questions or concerns regarding this information so that we may discuss further with you.
1. Closing Statement:
The closing statement includes a breakdown of closing expenses and payments, stating how they will be paid and from where. You will generally receive this between 1-3 days prior to the closing, however, there are certain circumstances where the receipt of the closing statement may be delayed further. For example, in order for us to tell you how much money to bring to the closing and to whom the funds should be made payable, we must receive information from the Seller’s Attorney about the Payee(s). If there is a Lender involved, we often need to receive information from the Lender’s Counsel as to the precise amount of money that will be available to you (this is referred to as your “net proceeds,” and is comprised of the loan amount minus the Lender’s expenses).
- Once received, please review the closing statement, and let us know if you have any questions.
- Remember that funds for the closing will need to be NY certified bank checks, so please make sure that all the funds anticipated for the closing are in a NY branch bank account (and not Schwab, Fidelity, or any investment fund/credit union that may limit how much you can withdraw per day). If you are unsure, please reach out to your bank to confirm whether they can provide certified checks on the day of closing so that there is no issue.
2. Walkthrough:
Please coordinate the walkthrough with your Broker. The standard NY practice is to perform the final walkthrough the day before the closing (and sometimes even the morning of the closing). Issues discovered during the walkthrough may be troublesome due to limited time for the Seller to correct them (assuming the Contract states that the Seller is required to make the repairs). If you spot any walkthrough issues, we would strongly recommend seeing if the super can come and look at them while you are there – sometimes they are able to resolve the issue(s) or give initial insight and an estimated cost to repair.
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- Please take a detailed look at the unit, and ask your Broker any questions that you may have.
- Let your Broker and Attorney know as soon as possible if you spot any issues.
- If there are walkthrough issues that remain unresolved prior to closing, we can discuss your options, as there are some options that still allow you to close but with a credit, escrow or other solution.
3. At the Closing Table:
We generally advise clients to allot about 2 hours for closing, though some closings can take longer if there are matters for the parties to resolve, such as: bank-related issues, parties running late, etc. At the closing you can expect to see the Title Company, the Seller’s Attorney, the Seller, the Bank Attorney (where applicable), and an attorney from our office appearing on your behalf. In addition, if the Seller has a mortgage, the Title Company’s closer will typically pick up the Seller’s mortgage payoff check and file the Deed with the county. Note that the Condominium (or their management company) typically does not send a representative to the closing as they usually provide their documents and schedule of fees owed prior to the Closing date.
Once you get settled in at the table, a series of documents will be exchanged between and among the parties. We will explain to you the documents that you need to sign and their significance in the transaction. If you have any questions, you will have an opportunity to ask us at that time.
Examples of documents you may encounter at the closing:
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- Bank Documents. If you are getting a loan, we will have bank documents for you to sign. It is important to sign these documents first because the bank documents will likely need to be sent to the bank’s closing department for funding approval, which can take some time.
- City/State transfer documents. These documents are commonly referred to as ACRIS documents. These documents let the State/City know who is involved in this transaction and the amount of tax to be paid on the deal, and by whom. Please note: if your purchase price is above one million dollars, you will be required to pay a mansion tax at closing.
- Condominium documents. As mentioned above, the Condominium typically does not send a representative to the closing (though in some rare cases they will). Either way, the Condominium will likely require certain basic information, such as emergency contact information, unit power of attorney, and other similar documents.
- Title documents. The title company may require you to sign a document acknowledging the title charges, as well as an affidavit acknowledging that you are not hiding any pertinent information not otherwise disclosed. If the title company will be making a payment for upcoming property taxes, they may require an Escrow agreement for same.
Once you have signed everything, any walkthrough issues have been resolved, and your lender has funding approval (if you have a loan), the Title Company representative will confirm with the Buyer and Seller that we are clear to close.
The Title Company Representative will make copies of all documents exchanged for the Seller/Buyer/Bank. If you have a bank loan, make sure you receive copies of all bank documents signed at the closing, since our office typically does not retain these documents subsequent to the closing unless we also represent the Lender. The Title Company Representative will also take the Deed and file it with the appropriate authority. Deeds are public record, so if anyone reaches out to you after closing asking you to pay them money for a copy of your Deed, that is a scam. If ever unsure, scan us a copy of what you receive, and we will look over it for you.
If the Seller has a mortgage, then the Title Company will deliver the payoff to their lender.
If the Seller has not handed you the keys already, they will provide the keys to you. Please note that in some closings, the keys are left with the doorman or with the Brokers. We recommend that you seek clarification if you have not received your keys before leaving the closing.
Congratulations! By this point, you have made it to the finish line and are now closed. Please keep in mind that you will need to coordinate your move-in with management. After the closing, we will send you the final closing statement, which you can provide to your accountant during tax time.
If you have any questions about the above summary, please let us know – we want to make the process as smooth and seamless as possible for you!