Avenue Law Firm

The Value of a Closing Attorney in New York

Buying or selling property in New York is an expensive proposition. Home prices are high, and closing costs can add up to 2% to 5% of the purchase price. Closing costs include the base transfer tax, buyer’s real estate commission, lender fees, title insurance, and the attorney fee. Whether you are a buyer or seller, it’s essential to have an experienced closing attorney at your side to guide the transaction through the various legal and procedural requirements in an efficient and cost-effective manner. A closing attorney is a neutral party who can ensure that the process is fair and equitable to all parties.

When you’re buying a new construction or purchasing a resale that requires a mortgage, your closing costs will be higher than those for an all-cash purchase. This is because of the additional steps involved in preparing and recording the deed and deed of trust, as well as the buyer’s mortgage loan.

A closing attorney will prepare the official documents for a real estate closing. The lender will deliver the loan package to the attorney, who will review it to confirm that all information is accurate. This will include a legal description of the property, current property taxes, homeowner’s insurance information, the lender’s loan documents and other terms and details. A copy of the completed package will be provided to the buyer for his or her records.

Some transfers involve interests in condominiums, co-ops and homeowners’ associations. These require the preparation of complex documentation, and they often involve special tax considerations that justify an attorney’s review. An attorney’s fee will also be required if the association is currently in foreclosure.

Buyers typically pay for a number of other closing costs, including the base transfer tax, the county clerk’s recording fee and the mansion tax (starting at 1%) on properties priced above $1 million. Buyers will also need to prepay a year’s worth of local property taxes, which will be held in escrow and distributed on closing day.

The closing process can be confusing, especially for first-time buyers. A closing attorney can help explain all of the important documents and fees, and will be able to answer any questions you might have about the process. A good closing attorney will make your purchase or sale an enjoyable and successful experience. 

The Differences Between Closing Attorneys and Real Estate Attorneys

The real estate industry is filled with a variety of professionals, including brokers and agents who act as liaisons between property buyers and sellers. They also work closely with lenders and closing attorney to facilitate transactions in accordance with New York law. But while many people believe a home buyer or seller can bypass the need for a lawyer, an experienced attorney can play a vital role in safeguarding a client’s rights and interests throughout the closing process.

In the state of New York, it’s customary for both the buyer and the seller to be represented by an attorney during a residential real estate transaction. The closing attorney role dovetails with that of the real estate agent and primarily involves reviewing and preparing legal documents for a sale, including the purchase agreement and deed. A closing attorney can answer legal questions that arise during a sale, such as whether or not the closing date in the contract is firm and what events must occur before a closing can be finalized (contingencies).

During a closing, a closing attorney reviews all the final documentation with the purchasers, usually along with their realtors and lender. The CD Form, loan documents, a termite report, any homeowner’s warranty and the plat map are all reviewed at the closing. Closing attorney also ensure all legal requirements are met and that the closing process proceeds in accordance with New York law.

When a person is purchasing a home, it’s often difficult to fully understand the legal terms used in a draft contract. A knowledgeable New York real estate attorney can review the contract and identify any issues that may impact a purchaser’s interest in the home, such as restrictions imposed by a homeowners association, zoning ordinances, and other legal concerns. The lawyer can then provide a client with recommendations for how to proceed with the draft contract to minimize any risks.

Some transfers involve a condominium, cooperative, or homeowners’ association, which require special documents that a lawyer can review to determine whether the transfer complies with New York law. The attorney can explain the implications of these ownership structures, which typically include covenants and promises, by-laws, rules, assessments, and charges.

A closing attorney can also help a buyer obtain the appropriate mortgage financing required for the property, and can advise them about the process of obtaining title insurance and how to resolve any existing liens. He or she can also explain the tax ramifications of a home purchase and suggest ways to limit those expenses for a buyer.

When choosing a New York real estate lawyer, it’s important to ask for referrals from friends and colleagues to determine which lawyers have the most experience in handling real estate transactions. In addition, it’s a good idea to check an attorney’s historical disciplinary record to see if any previous complaints or issues have been filed against the individual and how serious those were. New York State Bar Association records can be accessed online to verify this information. 

Choosing a Closing Attorney

Buying or selling property can be an exciting and complex event. Both Sellers and Buyers should be advised to have a skilled closing attorney assist them during closing. This will ensure that the process is completed accurately and in accordance with New York law. The closing attorney involved will handle the drafting and execution of the important documents that will be required by both parties. Often, these documents include certifications related to well testing, flood searches, and buried oil tanks. The closing attorney will also perform a title search to verify that the Seller owns clear title to the property and that there are no outstanding liens or tax liabilities associated with the property. Additionally, the Buyer will be able to obtain title insurance during this process to protect against any future claims against the property.

A New York closing attorney will assist with a variety of tasks throughout the real estate transaction. They will review all relevant laws and regulations to ensure compliance with local ordinances, zoning requirements, and property transfer requirements. They will also mitigate legal risks and help ensure a seamless, efficient, and financially sound close of the sale.

The role of a buyer’s agent is typically the first hired party in connection with a residential property sale in New York. A buyer’s agent will identify and show the Buyer desirable properties, advise on “comps,” or prices for which comparable homes have sold, and help determine a price at which to make an offer. Buyer’s agents will also negotiate terms and conditions on behalf of their clients, including the amount of the down payment and the length of the loan.

While it is not required to have a real estate attorney during the home-buying process, many New York Buyers choose to do so. A knowledgeable and experienced local real estate attorney can advise on the appropriate steps to take to complete the purchase and avoid complications, such as obtaining a mortgage commitment from a lender, or issues with the condition of the property or its title.

New York closing attorney will review mortgage documents and other relevant information to ensure compliance with laws and regulations, such as disclosure requirements and fair lending practices. They will also be responsible for addressing any potential legal risks or disputes that may arise during the mortgage process, such as title problems or legal liens.

When Choosing a Closing Attorney in New York, you should consider the following factors:

It is recommended that you meet with the attorney or firm before the closing date to discuss their skills and familiarity with the type of transaction you are experiencing. You should also ask what percentage of their practice is dedicated to real estate transactions and how long they have been practicing. 

Avenue Law Firm

Avenue Law Firm

360 Madison Ave, 9th Floor, New York, NY 10017

(212) 729-4090