In the days and weeks ahead of a real estate closing, there is a lot of work being done behind the scenes to make sure that the transaction can be completed without incident. Both the Buyer and the Seller in a transaction have much to do. For example:
- The title policy and survey must be reviewed to ensure that title to the property is clean and marketable without any unusual easements or encroachments.
- The payoffs for any mortgages presently on the property have to be ordered. The mortgage holder needs to provide information on the existing loan and how much is necessary to pay it off. This amount changes by the day.
- The property taxes must be adjusted for the day of closing. This means that, if a property is sold in the middle of a tax quarter, the amount overpaid by the seller must be credited back. If the seller has not yet paid for that quarter’s taxes, the buyer will be credited for each day the seller had ownership of the property.
- The title company runs judgment searches on everyone related to the transaction. The attorneys involved do what they can to confirm that the judgments noted in those searches are not against their own clients but against people with similar names. In the event those judgments are against the buyer or the seller, payoffs must be obtained prior to closing, or the transaction cannot be completed.
- Readings have to be ordered for the water meter, electric meter, and oil tank, as applicable. These bills must also be paid off at closing, or an escrow must be held.
- Depending on the town’s requirements, an inspection must be conducted to obtain a Certificate of Occupancy and/or a smoke detector certificate.
- If the property is subject to a home owner’s association or lake association, additional work may be necessary to notify the association, resolve any overpayment of association dues, and set up a new account.
- Walkthrough issues must be discussed and resolved.
In the Petriello Law Firm, all this is handled by our competent and knowledgeable team. Because we specialize in real estate law, we are familiar with everything that must be done in order to make sure that your closing is completed as quickly and smoothly as possible.