What Happens After A Contract Is Signed In A Real Estate Transaction?
Once a contract is signed and the down payment is furnished as part of that contract, the seller’s attorney holds the down payment in escrow. The next stage for the seller is to begin getting the property ready for the closing. That includes getting the property vacant and cleaned, making sure that all appliances are in working order, and making sure that the roof does not have any leaks. After the contract is signed by both the purchaser and the seller, the purchase orders a title report. Once the title report is furnished to both the purchaser and the seller, it has to be reviewed and any title defects or issues have to be addressed.
If the purchaser is obtaining any financing for the purchase, they should diligently pursue their mortgage application. The standard contract in New York does require that the purchaser diligently pursues the mortgage application. This includes working with the mortgage lender to provide whatever documents and information they require and to execute all applications and documents that need to be signed. As a buyer, you are contractually obligated to move forward with the mortgage process as soon as possible.
After the title report is ordered and it is reviewed by both attorneys, and they agree on what exceptions must be cleared, the parties will start to prepare for the closing. That means setting a closing date and doing the final closing adjustments. This includes adjusting for any credits that either party is receiving including adjustments for real estate taxes. The seller’s attorney and the purchaser’s attorney exchange closing adjustments and then the seller’s attorney prepares the deed and the transfer documents and brings them to the closing. The purchaser would have to bring enough money to the closing to cover the purchase price and any additional closing costs. Certified or official bank checks are required most of the time.
Do I Have to Attend The Real Estate Closing On My Own Property?
Often time in the New York City and Westchester County area, the seller, seller’s attorney, buyer, buyer’s attorney, and title company will attend the closing. If there is a mortgage loan, then there is also a bank attorney present at the closing and oftentimes, the realtors come to the closing to pick up their commission checks and wish their clients well. If a client does not want to attend the closing, they can sign a power of attorney to their attorney or another party, giving this party the power to sign documents on their behalf for that particular transaction. It is important to get the power of attorney approved by the bank attorney and by the title company prior to closing, so you do not have any problems when you are at the closing table. Make sure that everyone has a copy of the power of attorney and that it is approved by all the parties. This will enable you to close a transaction without having to attend the closing.
Where Is the Real Estate Closing Held?
A real estate closing is usually held at the bank attorney’s office or the lender’s attorney’s office, if there is a mortgage. Sometimes, the bank attorneys are not in the county where the property is located. In that case, the closing will take place at one of the party’s attorney’s offices. The seller’s attorney has the option of having it at his or her office but most of the time, the parties simply pick a mutually agreeable place to close and then the closing is scheduled.
For more information on Signing A Contract in A Real Estate Transaction, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (800) 619-3570 today.
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