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closing on the purchase of your new home
Closing on the sale of your property takes as much time and preparation as choosing 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 represent you in the process and verify all the documentation the seller will be providing.
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 real estate 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.
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 to 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 use our page which lists the customer service departments of the local utility companies.
Will I have to be present at the closing?
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 your 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.
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