What happens at a real estate closing?
Buying a home in the Capital Region can be a very rewarding experience, but it requires a number of considerations like arranging for moving, setting up utilities, registering children in new schools. With all this going on, homebuyers preparing for the real estate closing are well-advised to engage the services of a qualified real estate attorney.
The Role of an Attorney in a Real Estate Settlement
Of course, an attorney should be involved long before the closing to help you navigate the purchase and negotiate the sales contract. Another important role of the attorney is to perform a title search in order to verify that the property is being sold free of any encumbrances such as liens or judgments and that the seller has the legal right to sell the property. If there are judgments or liens that must be paid prior to the sale, the deal can be delayed. This can pose problems if you are simultaneously selling an existing home or are moving from an apartment.
When the deal is set to close, an attorney can help with a number of matters including:
- Explaining the closing process
- Reviewing the closing documents
- Calculating the funds needed to close
Real Estate Closings at a Glance
A real estate closing, also referred to as a "settlement," is the final performance of all the agreements between a buyer, the seller and the lender for the purchase and financing of a home -- provided that the buyer is not purchasing the home for cash.
This involves the simultaneous exchange of documents and funds required to close the deal. The buyer pays the seller with a combination of a down payment, his or her own funds, and the proceeds of the loan. In exchange; the seller provides the buyer with a deed and other transfer documents, and clear title to the property. The buyer receives the loan proceeds from the lender, and the buyer provides the lender with a promissory note to repay the loan. The buyer and seller pay necessary attorney, title, and notary fees.
After the transaction has been settled, the buyer becomes the property owner and can take possession immediately or shortly after the closing, unless there is an agreement with the seller to take possession at an earlier or later date. There may also be other post-closing agreements to resolve such as reimbursements for real property taxes when the exact amounts due are unknown at the closing, or repairs that could not be made prior to the closing.
As you can see, a real estate closing in the Capital Region involves more than just signing a number of documents. Complicated issues may arise that only a highly skilled real estate attorney can resolve, so it is important to have one by your side. Please don't hesitate to consult with one of our knowledgeable attorneys at Ianniello Anderson at 518.350.7755 where we serve clients in the Albany, Clifton Park, Glens Falls, Saratoga Springs, Troy and the entire Northeastern NY area with skill and dedication.