An Elaborate Guide To Real Estate Closing

• 2 Jun 2021
• real estate lawyers

A real estate closing is a date that is duly mentioned in the purchase agreement as the day when you become the official owner of the property. Closing is the ultimate step that transfers you the ownership of your new home from the seller. Once the mortgage loan is paid, the seller prepares the final legal documents for the process closing, that the buyer has to agree on in order to receive the complete possession of the property, along with the house keys.

All the transactions related to real estate closing are processed in an Escrow account, where the buyer and the seller negotiate and initiate a settlement on various purchase titles. Real estate closings are quite familiar yet stressful outdoors, such as in New York. A real estate closing attorney in New York relieves you from the tiresome procedure and takes full accountability to verify and finalize the closing on your prospective property.

The purpose of a closing statement is to document the records, transactions, agreements, and details of the real estate so it becomes a legitimate contract between the seller and you- the buyer. Along with the handover of official documents and house keys, the escrow account through which all the transactions were held is brought to an end too. Below is the complete guide to real state closing, that provide insights about the whole procedure – 

• Open An Escrow Account – A real estate closure involves multiple transactions that are essential to keep confidential and secured, between the buyer and seller. Therefore, the first step of real estate closing is to open an escrow account, which is monitored and controlled, completely by an external party. This member ensures that both the seller and the buyer participate in this process with fair means to eliminate the possibility of any monetary cheating. The third-party that manages the escrow account also takes account of all the legal documents and covers the formalities in a procedural way.

• Title Search And Insurance – In some cases, multiple properties are listed with the same title, which makes it easy for many people to claim it. Title search enables you to a claimed property title whose ownership is documented in your name. It also ensures that once you purchase the property, no other person gets to claim it in the near future. Title insurance acts as a legal safeguard that provides protection to both the buyers and lenders from damages in the title of the property. 

• Hiring An Attorney – Better late than never, it is recommended to take up legal assistance from an attorney that can ease the real estate closing on your behalf. Since legal documents contain jargons that might not be understood by a common man, an attorney may find appropriate ways to simplify the problems for you and the seller and offer other benefits to eliminate excess process fees.

• Negotiating Closing Costs – It is quite evident that each step of this process requires a charge, a processing fee that sums up to be a big total for your pocket. From title insurance to paying the attorney fees, filling up legal documents, and opening the escrow account- all these transactions could add up to a large sum. It is essential to negotiate the closing costs at each step of the closing procedure to save every possible buck, which you can use further. 

• Completing Home Inspection – Before signing the real estate contract, make sure that you inspect the home and the surrounding region to rule out the possibility of any potential damage to the property. If you find any damage while inspection, you can inform the seller so they can fix it, or you can back off from the deal.

• Getting A Pest Inspection – Once you examine the physical characteristics of the property, you can run a pest inspection drive to ensure that there shall be no damage to the wooden framework of your property. Mostly, sellers make sure to inspect the property before putting the house up for sale. But, to be on the safer side, you can hire professionals to detect any wood-eating termites residing deep into your property, and then close the deal after successful inspection.

• Locking Interest Rate – When you ponder over the mortgage value, one important thing is to fix the interest rates as they are subject to change with time and geographic location. Locking the interest rate with the lending party puts you in a safe spot and safeguards you from fluctuating market rates and purchase prices.

• Removing Contingencies – A legal contingency refers to circumstances that cannot be predicted but are most probable to happen which is why it is essential to document the details to eliminate contingencies. Being the buyer of the real estate property, you should be clear on a few things:

1. Financing rate that does not go beyond your capability
2. A complete inspection of the property, including pest inspection
3. Completion of known hardware repairs by the seller.

• Complete Paperwork – Paperwork is really essential to close a real estate deal and it is of utmost significance that you should fairly comprehend the agreement, read it a couple of times or consult an attorney to proofread it. Many lenders would pressurize you to sign the papers at the earliest to expedite the process, but it is equally important that you go through each intricate detail to legitimately close the deal.

Want a legal assistant to help close your real estate deal? You’ve reached the right place! Radow Law Group provides you the opportunity to handle all your legal transactions with precision and in a timely manner. Our team of attorneys has significant experience with various different clients as our aim is to effectively understand your case and aid your residential or commercial purchase. For more information, contact our team today!