closing on your sale

Closing on the sale of your property takes as much time and preparation as marketing it.  Use our years of experience and the information we have prepared for you below to make the closing process smooth and successful.

12 common real estate closing questions answered

Why and when do I need a lawyer?

A lawyer will be able to arrange documentation that will result in the conveyance of proper title and satisfaction of the new lender’s requirements.   It is generally useful to retain a lawyer that specializes in real estate practice at the beginning of the transaction process.

How will my lawyer’s fee be determined?

  Your lawyer will either set a flat fee or hourly rate based on his/her evaluation of the complexity of your transaction.   You are also responsible for any disbursements (expenditures) that your lawyer may incur in the process.   Make sure you understand what services you will receive from your lawyer and discuss them before you begin the process.

Who pays for closing costs?

In Western New York, the standard real estate contract dictates that the seller is responsible for those costs included in conveying proper title to the property (i.e. search, survey and state transfer tax).   The purchaser is usually responsible for those items specific to the purchaser’s lending institution and most recording fees.

Should my contract require a home inspection?

  The standard form contract generally used in Western New York states that the “Purchaser has satisfied himself/herself that the condition of the property and its contents are acceptable.” It is therefore important that a purchaser be knowledgeable about the condition of the property being purchased.   As a purchaser, you may find it worthwhile to obtain an inspection by an expert.   As a seller, you can rely on your purchaser’s familiarity with the condition of your home to help prevent claims of hidden defects after closing.

What exactly are title documents and why do we need new ones?

The abstract of title or “search” is a list of every document recorded in the county clerks office affecting the land on which your house is built.   The “survey” maps out your house and any improvements that have been made.   Your lawyer will review these documents to determine what is required to convey proper title from seller to purchaser.   In most cases, existing title documents just need to be updated.

How definite is the contract closing date?

The closing date specified on your contract is ordinarily a target date and may not, therefore, be binding on either of the parties.   However, if your individual circumstances revolve around a particular date, your lawyer will try too coordinate your closing date with your special needs in mind.

Do I move on the closing date?

The standard contract dictates that the seller must give the purchaser possession at closing.   If addressed in advance, it may be possible to negotiate your contract to include early or post-closing occupancy. You may also find it more convenient to have your belongings delivered on the day following your close date.

How much money do I need or will I get at closing?

Generally, your lawyer will not know the exact amount until the day before closing.   However, you can get a rough idea from the “Good Faith Estimate of Closing Costs” that will be issued by your lender following your mortgage application.   Your lawyer will also be able to discuss his or her fees and any additional disbursements. If you are moving in from out of the area, it is highly recommended that you open a checking account at a local bank in order for funds to be transferred from your previous location in a timely fashion.

What about utilities?

All utilities of the house, which is to be purchased, must be in operation at the time of the lender’s appraisal and the purchaser’s pre-closing inspection.   In many areas, both new and former owner must arrange to transfer the utilities.   It is recommended that you find out the customer service department of the local utility company.

Will I have to be present at the closing?

Sellers are not required to be present at the closing unless they wish to be.   Purchasers who are financing their purchases with a mortgage must be present, unless they are permitted to give “power of attorney” to another individual (depending on the requirements of their lender).

Why does the closing process take so long?

Many individuals and entities participate in the closing process.   The speed of you transaction will depend on a variety of activities taking place simultaneously and will rely on the knowledge and skill of the professionals and the responsiveness of the parties involved.   You can help by responding quickly to any requests for documents or information from your realtor, lender or attorney.

What can I do to expedite my transaction?

Cooperate with the new lender in providing information about yourself or your property.   Be patient waiting for information on the closing date and the funds that you will require or receive.   Arrange homeowner’s insurance if you are the purchaser.   Assist your lawyer in locating your title documents of you are the seller.

To ensure a timely closing, now is a good time to assemble the following items that you will need to provide your attorney once you have signed a contract:

Original Title Search/Abstract of Title – of all the documents pertaining to your house, this may be the most important.   The title search, also referred to as the abstract of title, is the document that shows the record owner of your premises from the first recorded deed in the early 1800’s to present date.   The dimensions of the search are 8.5” x 14” and can be quite substantial depending on the previous transactions involving your lot.   As you can imagine, the work involved in preparing a new title search can be quite costly, sometimes up to $900.00.   The average cost of updating an existing search is about $300.00.  

Survey – The survey is the map of your individual lot, which also shows a simple drawing of the dimensions of your house.

Deed – A copy of the deed is sufficient.   You may want to keep the original as a souvenir of your home.   This is perfectly acceptable because when closing takes place and the deed to the new owner is recorded, your existing deed becomes obsolete.

Tax receipts – Although easily obtained by your attorney from your local tax office, it helps to have these in hand to move the closing process along.

Mortgage statements – Have your current statements ready for any mortgages secured by your property.   Both your primary mortgage and any home equity loans will have to be paid off at closing.   It is helpful to provide your attorney with these statements in a timely manner to avoid any problems in obtaining final payoff statements at closing time.

Keys – Locate as many as you can find and label them accordingly.   Don’t forget the spare key hidden outside the house.   It is more convenient for you to allow your attorney to hand over at least one key to the new owner at closing.