There are a number of professionals we have to work with to coordinate our sales, from lawyers, home inspectors, mortgage brokers to contractors and sometimes co-op directors and boards as well as our sellers and buyers.
Every time in a blue moon, a structural engineer checks the integrity of a house’s walls and foundation. Coordination between the parties is important and crucial, especially at this time, to ensure that the transaction goes in the right direction efficiently and quickly so that the end result is positive.
With assistance from sales and listing agents and with both seller and buyer arriving at an agreed and accepted price (submit accepted offer with letter from lender or proof of funds if paying directly for the purchase ) would be the first initial step in the process of creating a sale.
The next step would be a transaction sheet between the parties, showing all the parties to the sale, buyers, sellers, agents and lawyers, the terms of the agreement (sale price, mortgage amount, total amount of the loan). buyer’s pocket, what is included in the sale and the approximate closing date.
âOn or aroundâ closing dates are more flexible than a âon or beforeâ date, which is a âcritical timeâ when closing must occur on or before a specific date. This form will be emailed to seller’s attorney as well as to all other parties, so if any errors are apparent they can be corrected by having the document reviewed by more people.
If necessary, sellers should discuss any additional time they might need to stay in the house after it closes, due to unforeseen circumstances when moving to their next home. This will have to be written in the contract.
In addition, lawyers will always review contracts, as the terms and conditions and language must be acceptable to both.
However, before signing a contract, the buyer should perform an inspection to make sure that what they are buying has no major flaws, as no one likes surprises and extra expenses, especially after closing (unless that the buyer (s) know that he is buying “as is”).
The contract is first signed by the buyer (s) and then sent to the seller (s) by the buyer’s lawyer for the seller (s) to sign. After the contract is fully executed, the buyer (s) must provide a copy of their contract to their mortgagee, so that the mortgage application process begins.
Assuming buyers have provided all of their personal information from the start to get their pre-approval, so there are no strings attached, their appraisal can be done on the home.
Assessments in the current context will be scheduled in 1 to 2 weeks. The assessor will complete their assessment and then send it to the bank to continue with the approval process.
Usually, most contracts are signed with a 45-60 day window for final written mortgage approval. However, there are times when a delay by the bank or additional documents may be requested from the buyer, and an extension of time will be necessary and is requested by the buyer’s lawyer.
If it is a cooperative sale, management will sometimes ask for a copy of the contract to verify the sale. Once this is done, a copy of the Co-op Selling Kit is provided to buyers while the mortgage is facilitated, and the filling process begins.
While it may be difficult for some to provide all of the required information that a co-op requests on demand, it will provide a very clear picture of the financial capacity of the buyer (s).
Unless you have the money to buy a condo (no board approval) which can cost around $ 100,000 to $ 150,000 more for a similar space (but more luxury, indoor parking guaranteed, doorman, rental license, etc.), co-ops are a great alternative, as long as their finances are strong, with enough money in their reserve fund, good working capital to pay monthly bills and the maintenance that is somewhat comparable to other similar units and increases have been minimal in recent years.
Once management has reviewed the request, they send it back to the board to review the package with a âfine tooth combâ. Next, management will call to set up an appointment for potential buyers during an in-person interview.
Lately, I see more and more tips considering where doing a Zoom interview is much more efficient, safer and more flexible in carrying out the interview for all parties involved.
Once the buyer passes the board, a close can be scheduled, after the bank has declared the sale “clear to go”. The two attorneys, bank attorney, title company will work on a closing date and pass it on to the buyer, seller, and agents involved in the transaction.
Agents should send their invoices for services rendered with their personal and business license numbers to the seller’s attorney.
Additionally, a final property visit is made to make sure everything is in order, utilities are working and the home is in the same condition as when the buyer last visited when there was an agreed and accepted price.
No one likes surprises at the close because that should be the time when everyone is satisfied and happy. However, if there are major issues, the money is blocked until those issues are resolved, but the close will still take place.
On closing day all paperwork is completed and if a cash sale a copy of the contract is required for agent records, with all NYS agency, lead (if applicable) and Covid disclosures .
However, if a mortgage is involved, a CD (closing document) must be kept by both officers for their records for 3 years, according to State Department rules.
Obviously, the process from start to finish is very complex and has its parts, so it is important that everyone is on the same page throughout the transaction, in order for the sale to be as effective as possible with as little stress as possible.
Philip A. Raices is the owner / broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has 40 years of experience in the real estate sector and has obtained the title of Graduate of the Realtor Institute (GRI) and also that of Certified International Property Specialist (CIPS). For a “FREE” 15 minute consultation, an analysis of the value of your home, or to answer your questions or concerns, you can reach him by cell: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com