Purchasing a home is one of the largest investments that people make in their lifetime. It’s a significant event and takes a lot of time, energy and cooperation between a team of people to bring a transaction to the closing table. I say “team” because it truly is a team of all different professionals that have to work together. Whether a client is buying or selling, I always like to tell clients this up front so that they understand all of the people who will be involved in the transaction.
The main professionals involved in a real estate closing are buyer’s attorney, seller’s attorney, title company, real estate broker(s), mortgage broker/lender, bank attorney (if it is not a cash deal) and inspector. We believe that it is so important for all of the professionals involved to stay in close communication so that we can all work together to bring the transaction to a close.
Initially, the real estate broker(s) will work out the main terms (purchase price, any specific items that the parties agree upon, such as repairs seller might make, etc.). In New York, the next step is normally hiring an inspector to inspect the property. If issues arise, either the brokers can work with the parties to come to an agreement regarding the issues, or the attorneys can negotiate an agreement between the parties. The negotiation of the contract will be done by the attorneys. Once the contract is fully executed, the next step in the process will be to order title and begin the loan application process.
The title company is hired by the purchaser (normally through purchaser’s attorney) to perform a title search and issue title insurance. Included within the title search is a search of the municipality’s records, which can take several weeks. The title company will have a title closer present at the closing and will be responsible for the filing of the deed, as well as other state transfer documents, with the County Clerk’s Office.
In addition to the title process, if the purchaser is applying for a mortgage, they will work with a mortgage broker and/or lender to apply for the loan. This process can also take several weeks. We like to stay in contact with the lender so that we can keep the process on track, track when the purchaser’s interest rate is locked in, and when we need to close.
The lender will have a bank attorney present at the closing who will bring the bank documents for purchasers to sign. The bank attorney will prepare the Closing Disclosure and work with the lender to determine what the purchaser’s “cash to close” will be. When we are representing the purchaser, we work with the lender and the bank attorney prior to closing to make sure that the numbers are correct and that the cash to close matches what we show on our Closing Statement. We do everything we can beforehand to avoid issues arising at the closing.
When we arrive at the closing, clients often ask, “who are all of these people?” Typically, the people in the room at the closing are the seller’s attorney and their client(s), the buyer’s attorney and their client(s), the bank attorney, the title closer and the real estate broker(s). At this point, the client can see that it was really a team effort to bring the transaction to a close!
Disclaimer: The information contained in this post is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls and communications. Contacting us, however, does not create an attorney-client relationship.
