Closings

Steps for Closing on a House

The closing process begins after a buyer signs the contract of sale. In the weeks following, the homebuyer should expect to navigate the following steps with their attorney to officially close on their house:

1. Arrange an escrow account. This is an account monitored by a third party in which the buyer will place the money (“earnest money”) and documents related to the sale. After everything has been settled, the money and documents will be transferred from the escrow account to the seller and buyer. The purpose of such an account is to increase confidence between both parties that everything is under control and not being manipulated or withheld.
2. Title search and insurance. Title search is the process of examining public records to confirm the property’s legal ownership and whether there are any claims on the property. Title insurance is indemnity insurance protecting the holder from any financial loss that may be sustained due to defects in a title to a property. Title search and insurance mainly protect the buyer so no one else can try to claim the property in the future.
3. Negotiate the closing costs. Keep in mind that there are many costs associated with a closing, including home and pest inspections and junk fees from a lender. An attorney can better help ensure that the buyer is not being taken advantage of with inflated fees.
4. Home and pest inspection. These are two different but necessary inspection processes that can help a buyer locate any problems with the property. If they do discover issues, they can back out of the deal, ask the seller to remedy the problem, or request money from the seller to remedy it themselves (e.g., having the seller pay for pest elimination services prior to the purchase).
5. Deposit additional funds into escrow. The “earnest money” in the escrow account will be applied to the down payment, but the buyer must also arrange for the rest of the required funds before the closing. Failing to do so may result in a cancellation of the sale.
6. The final walk-through. The buyer and the attorney should look over the property one more time and verify the seller has completed what they’ve been asked of for repairs. The buyer and attorney should also make sure nothing has been modified or removed in the purchase agreemen
7. Understand the paperwork. The legal jargon of real estate papers can be difficult to understand, but an experienced closing attorney can help to explain all the relevant legal terms and conditions that apply to the transaction. The fine print determines the future of the home and the buyer-seller relationship, so it is critical to understand what each word and page establishes.

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FAQs about New York Residential Real Estate Closings

HOW LONG DOES THE CLOSING PROCESS TAKE IN NEW YORK?

In New York, the real estate closing process usually takes between 30 to 60 days after the contract is signed. A closing attorney helps keep everything on schedule by coordinating with lenders, title companies, and the other party's legal team.

WHO PAYS ATTORNEY FEES AT CLOSING?

In most cases, each party pays for their own real estate attorney at closing. The buyer pays their attorney, and the seller pays theirs. These fees are included in each party’s closing cost breakdown and reviewed before settlement.

WHO HIRES THE CLOSING ATTORNEY?

Both the buyer and seller typically hire their own closing attorneys in a New York real estate transaction. Each attorney ensures that their client’s rights are protected throughout the process, from contract to closing.

WHAT DOES A CLOSING ATTORNEY DO FOR THE SELLER?

A closing attorney representing the seller prepares the deed and transfer documents, resolves any title issues, manages the payoff of existing mortgages, and ensures the funds are properly disbursed at closing. They also handle any legal issues that arise during the transaction.

ARE ATTORNEY FEES INCLUDED IN CLOSING COSTS?

Yes, attorney fees are typically listed as part of a party's closing costs. These costs are detailed in the settlement statement before closing, giving both the buyer and seller a full breakdown of what they owe or will receive.

WHICH STATES ARE ATTORNEY CLOSING STATES?

New York is an attorney closing state, meaning attorneys play a direct role in the real estate closing process. Other attorney states include Massachusetts, Connecticut, South Carolina, and Georgia, where closings are not completed without legal representation.

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Get Started on Your Closing Today

The timeline for a closing depends on several factors, such as how long the home inspection will take, the type of property being purchased, and how the buyer is paying for the purchase. Typically, closing on a house can take a couple of weeks to months. Nonetheless, the more time a buyer and their attorney take to ensure the property is adequate for purchase, the safer they might feel about the future of the property.

Chiariello & Chiariello has between working with clients on real estate closings for decades, and the lawyers at the firm are more than prepared to walk you through every step of the closing process in New York. From helping you negotiate a favorable offer to parsing the purchasing paperwork, Chiariello & Chiariello can assist you with all your closing needs and help you kickstart this exciting new chapter of your life as a property owner.