Moving In – Closing Day

On closing day in a real estate deal in New York, several key steps need to be followed to finalize the transaction smoothly. Here’s a detailed breakdown of what typically happens on closing day:

1. Confirmation of Closing Details: Prior to closing day, all parties involved, including the buyer, seller, real estate agents, attorneys, and lender, confirm the date, time, and location of the closing.
2. Final Walkthrough: The buyer conducts a final walkthrough of the property to ensure that it is in the agreed-upon condition and that any negotiated repairs have been completed. This usually occurs shortly before the scheduled closing time.
3. Attend the Closing: On the appointed day and time, the buyer, seller, their respective attorneys, and possibly a representative from the title company or lender gather at the designated closing location. In New York, closings often take place at the office of the buyer’s attorney or a title company.
4. Review and Sign Documents: During the closing meeting, the buyer and seller review and sign all necessary legal documents. These documents may include:
   • Deed or Stock and Lease Certificate: Transfers ownership of the property from the seller to the buyer.
   • Promissory Note: Outlines the terms of the loan, including the amount borrowed, interest rate, repayment schedule, and consequences of default.
   • Mortgage or Deed of Trust: Secures the loan with the property being purchased.
   • Closing Disclosure: Provides a summary of the final terms of the loan and closing costs.
   • Title Insurance Policy: Protects the buyer and lender against any defects in the title to the property.
   • Various affidavits, disclosures, and other closing forms.
5. Payment of Funds: The buyer brings a cashier’s check or arranges for a wire transfer to cover the remaining balance of the purchase price, closing costs, and any other fees associated with the transaction. The seller receives the proceeds from the sale, minus any outstanding debts or liens on the property.
6. Recording of Documents: After all documents have been signed and funds have been exchanged, the buyer’s attorney or the title company records the deed and other relevant documents with the appropriate government office. This officially transfers ownership of the property from the seller to the buyer.
7. Distribution of Keys and Possession: Once the closing is complete, the buyer receives the keys to the property and takes possession, unless otherwise agreed upon in the purchase contract.
8. Title Insurance: The buyer typically receives a title insurance policy to protect against any future claims or issues with the title to the property.
9. Closing Costs: Both the buyer and seller may be responsible for various closing costs, which can include attorney fees, title insurance premiums, recording fees, transfer taxes, and other expenses. These costs are typically paid at closing.
10. Post-Closing Tasks: After the closing, the buyer’s attorney may handle additional tasks, such as disbursing funds to pay off any existing mortgages or liens on the property and ensuring that all necessary documents are properly filed with the appropriate government authorities.

By following these steps and working closely with experienced real estate professionals, the closing day of a real estate deal in New York can proceed smoothly, allowing the buyer to officially take ownership of the property and make a happy home.