Congratulations! You are almost at the finish line of your Condominium sale. 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 them further with you.
1. Preparing to Close:
You should have already provided us with your most recent mortgage and/or HELOC statement(s). If IT-2663 non-resident tax forms and/or FIRTPA withholding apply to this sale, please ensure that these items were discussed prior to scheduling the closing date.
If you do not wish to attend the closing in person, you may assign our firm to be your agent via power of attorney. If this has not already been discussed, please be sure to let us know as soon as possible if this is something that you are interested in. If you are located overseas or in a location where there will be delays in the preparation and execution of power of attorney documents, this option may not be possible.
Once a closing date is set, please check with us before making any common charge or tax payments, and please turn off any applicable automatic bill payments.
2. Closing Statement:
The closing statement includes a breakdown of closing expenses and payments, stating how they will be paid and from where. All of the fees due for your sale, including any applicable mortgage, any broker commissions, NYC/NYS transfer taxes (along with preparation fees), any unpaid property taxes or common charges, condo/management fees, and any fees due to our firm will all be accounted for, along with the estimated balance due to you as Seller. You will generally receive the draft closing statement between 1-3 days prior to the closing. However, there are certain circumstances where the receipt of the closing statement may be delayed further.
• Once received, please review the closing statement, and let us know if you have any questions.
• Typically, bank checks are provided for in-person closings, though sometimes wires may be necessary and/or accommodated. Please note that official bank checks and attorney escrow checks often take one week or more to clear. You should contact your bank for details on clearance times if you have any questions or concerns.
• If a move-out deposit is collected at closing, it is best practice to pay it via personal check. This allows for the deposit funds to be voided or otherwise refunded more efficiently.
• If you have assigned our firm to close for you via power of attorney, we will advise you on the available options to send the balance funds to you.
3. Walkthrough:
The Purchaser will typically coordinate a final walkthrough with their broker. Utilities should not be turned off until after closing in order to allow the Purchaser to check that everything is working.
The standard practice in New York 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 to correct them (assuming the Contract states that the Seller is required to make any repairs).
• Please be sure to keep an eye out for emails and/or calls from your broker and our firm ahead of the closing.
• If there are walkthrough issues that remain unresolved prior to closing, we can discuss a way forward, as there are some options that may still allow you to close but with a credit, escrow, or other solution.
• If you are not attending the closing, please be sure to be available via phone so that we can discuss options if needed.
4. At the Closing Table:
Be sure to bring along a valid photo ID for the closing, such as an unexpired license or passport. You should also bring along any available keys for the Unit, building and mailbox (as applicable).
We generally advise clients to allot about 2 hours for the 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 Purchaser’s Attorney, the Purchaser, the Bank Attorney (where applicable), and an attorney from our office appearing on your behalf. If you have a mortgage, the Title Company’s closer will typically pick up the mortgage payoff check (which we will have the Purchaser bring on your behalf) and file the Deed with the county. Note that the Condominium (or their management company) typically does not send a representative to the closing, and will 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:
• Bank documents. If the Purchaser is getting a loan, there will be lender 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. Unless otherwise noted, the Seller is the responsible party for the NYS and NYC transfer taxes. If the Purchase Price is one million or greater then there is a Purchaser imposed tax as well.
• 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 may have some standard documents to sign. They will often expect you to provide a forwarding address and contact details in case they need to reach out post-closing.
• Title documents. The title company may require you to sign a document acknowledging the title charges, paperwork related to your mortgage payoff (if any), as well as an affidavit acknowledging that you are not hiding any pertinent information not otherwise disclosed.
Once the required documents have been signed, any walkthrough issues have been resolved, and the lender has funding approval (if your buyer has a loan), the Title Company representative will confirm with the Purchaser and Seller that we are clear to close.
The Title Company Representative will make copies of all documents exchanged for the Seller/Buyer/Bank. The keys will be released to the Purchaser and the checks released to the Seller. The Title Company Representative will also take the Deed and file it with the appropriate authority. If you have a mortgage, then the Title Company will deliver the payoff to your lender.
Congratulations! By this point, you have made it to the finish line and are now closed. 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.