Congratulations! You are almost to the finish line of your Co-op purchase. Please take a moment to review the information below so that you may better understand what to expect as we approach your closing day. Some of the specifics described below may change based on the particular circumstances of your transaction. Please let us know if you have any questions or concerns regarding this information so that we may discuss further with you.
1. Closing Statement:
The closing statement has the breakdown of closing expenses/payments, stating how they will be paid and from where. You will generally receive this between 1-3 days prior to closing, however, there are certain circumstances where the receipt of the closing statement may be delayed further. For example, in order for us to tell you how much money to bring to the closing and to whom the check should be made payable, we must receive information from the Seller’s Attorney about the Payee. If there is a Lender involved, we often need to receive information from the Lender’s Counsel as to the precise amount of money that will be available to you (commonly referred to as your “net proceeds,” which is the loan amount minus Lender’s expenses).
• Once received, please review the closing statement and let us know if you have any questions.
• Remember that funds for the closing will need to be NY certified bank checks, so please make sure that all the funds anticipated for the closing are in a NY branch bank account (and not Schwab, Fidelity, or any investment fund/credit union that may limit how much you can withdraw per day). If you are unsure, please reach out to your bank to confirm they can provide certified checks on the day of closing so that there is no issue.
Please coordinate the walkthrough with your Broker. The standard NY practice is to do the final walkthrough the day before closing (and sometimes even the morning of the closing). Issues discovered during the walkthrough may be troublesome due to limited time for the Seller to correct any issues (assuming the Contract states the Seller is required to repair it). If you spot any walkthrough issues, we would strongly recommend seeing if the super can come and look at them while you are there – sometimes the supers are able to resolve issues or give initial insight and an estimated cost to repair.
• Please take a detailed look at the unit, and ask your Broker any questions that you may have.
• Let your Broker and Attorney know as soon as possible if you spot any issues.
• If there are walkthrough issues that remain unresolved prior to closing, we can discuss your options.
3. At the Closing Table:
We generally advise clients to allot about 2 hours for closing, though some closings can take longer if there are issues for the parties to resolve, bank-related issues, parties running late, etc. At the closing you can expect to see the Transfer Agent (the individual acting on behalf of the Co-op), the Seller’s Attorney, the Seller, the Bank Attorney (where applicable), and an attorney from our office appearing on your behalf. In addition, if the Seller has a mortgage, a representative from that bank will be stopping by the closing to pick up their mortgage payoff check and drop off the original Stock and Lease for the Transfer Agent to cancel once the closing is completed.
Once you get settled in at the table, a series of documents will be exchanged between and among the parties. We will explain to you the documents that you need to sign and their significance in the transaction. If you have any questions, you will have an opportunity to ask us at that time.
• If you are getting a loan, we will have bank documents to sign.
o It is important to sign these documents first because the bank documents will likely need to be sent to the bank’s closing department for funding approval, which can take some time.
• City/State transfer documents, more commonly known as ACRIS.
o These documents let the State/City know who is involved in this transaction and the amount of tax to be paid on the deal by the Seller. Please note: if your purchase price is above one million dollars, you will be required to pay a mansion tax at closing.
• Co-op documents.
o The Transfer Agent will need signatures on documents required by the Co-op, such as tax abatement forms, emergency contact information, and the documents that indicate your ownership in the Corporation (the Stock Certificate and the Proprietary Lease, commonly referred to as the “Stock and Lease”).
Once you have signed everything, any walkthrough issues have been resolved, and your lender has funding approval (if you have a loan), the Transfer Agent will confirm with all parties that they have permission to cancel the Seller’s Stock and Lease and date your own. Feel free to take a picture of your Stock and Lease at this moment if you have a loan, because the bank will leave with the original copies, and you most likely will not see those documents again until you have paid off your mortgage or you sell your apartment. If you do not have a loan, you will be leaving the closing with your original Stock and Lease. Please make sure to keep these documents in a secure spot, such as a safe, or wherever you store your important documents. If you lose the original Stock and Lease, you may be exposed to additional fees from the Co-op, premiums for affirmative insurance, and closing delays when it comes time to sell the apartment. We will provide you with a photocopy of the Stock and Lease so that you have it as your proof of ownership of the shares.
At this point, if the Seller has/had a loan, the Payoff Representative will leave with their checks.
The Transfer Agent will make copies of all documents exchanged for the Seller/Buyer/Bank. If you have a bank loan, make sure you receive copies of all bank documents signed at the closing. Our office typically does not retain these documents subsequent to the closing unless we also represent the Lender.
If the Seller has not handed you the keys already, they will provide the keys to you. Please note that in some closings, the keys are left with the doorman or with the Brokers. We recommend that you seek clarification if you have not received your keys before leaving the closing.
Congratulations, you have made it to the finish line and are now closed! Please keep in mind that you will need to coordinate your move-in with management.
After the closing, we will send you the final closing statement which you can provide to your accountant during tax time.
If you have any questions about the above summary, please let us know – we want to make the process as smooth and seamless as possible for you!