Avoid Closing Day Surprises
We’ve all heard the stories of things that can go wrong at a real estate closing. But if you’re prepared and organized, it should be an open and shut case. NY1's Jill Urban filed the following report.
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Ron Gitter, a real estate attorney and founder of CoopandCondo.com, recently offered up some tips on how to avoid a closing day disaster. First, there are a lot of players involved, so make sure you arrive on time. And if you are the buyer, make sure all your money is in order.
"Have all of their money ready for the closing at least two days before it's going to occur. If stocks have to be sold or money has to be transferred from a brokerage account make sure you do that sufficiently in advance of the closing date," recommends Gitter.
Check the checks and look to see if all the names are spelled right and that the amounts are correct. If there’s a mistake, the closing could be adjourned.
Buyers should always bring photo identification and a checkbook incase another check needs to be cut. Also, make sure the insurance on the home takes effect on the day of the closing.
"In addition, the bank is going to require the condo to prepare an endorsement, which names the bank as an additional insured. You must have the condo endorsement in order for the bank to be willing to close," says Gitter.
Gitter says one of the main reasons a closing is delayed is that the bank is just not ready close. In this climate, there is so much paperwork and sometimes the bank needs more time so you have to be flexible. If another sale or an expiring lease requires you to close on a specific date, you must address that with all parties when the contract is signed.
Gitter says the number one reason closings are delayed is when a minor problem has occurred either in the apartment or between the parties.
"I like to apply my 20 year rule. If whatever it is you are fighting about isn’t going to mean anything 20 years from now, forget about it," says Gitter.
Gitter recommends both parties work out details before the closing. He also says it’s a bad idea to agree to let a repair or property removal occur after the closing because it might be difficult to get it done.
A closing usually takes about two hours so leave enough time. Also, try not to schedule multiple closings on the same day.