The Step-by-Step Guide to Closing a Real Estate Deal in New York

Closing on a real estate deal in New York involves more than just signing papers. It's the final step in a complex journey filled with negotiations, legal checks, and financial coordination. This is where ownership officially changes hands, and where any last-minute hiccups can make or break the deal. Because New York's real estate process has its own unique rules and timelines, understanding how closings work here is crucial. Knowing what to expect helps ensure a smooth, successful transaction, whether buying or selling. Let's take a look at the steps.

Negotiating the Contract of Sale

The process begins with an offer, but it's important to know that an accepted offer is not legally binding in New York. It only becomes binding once both the buyer and seller have signed the contract of sale and the buyer has submitted the deposit for the down payment. Once the buyer and seller agree on major terms like the purchase price, the seller's attorney prepares a draft of the contract of sale. That contract is then reviewed and negotiated by the buyer's attorney. No one is legally obligated until both sides have signed, and the buyer has submitted the deposit.

Hiring an Attorney

Whether you're buying or selling real estate in New York, it's customary to have a real estate attorney. This practice is a highly recommended part of the process. These attorneys oversee nearly every legal and logistical aspect of the transaction for buyers, including reviewing the title, coordinating the mortgage process, and preparing for closing. For sellers, the attorney ensures that all legal obligations are met and that the transfer of ownership proceeds without complications. In short, having a knowledgeable attorney is one of the most valuable assets you can have during a New York real estate deal.

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Conducting a Title Search

Once the contract is signed and the buyer's deposit is in escrow, the next step is the title search. The buyer's attorney engages a title company to examine public records and confirm the seller has legal, unencumbered property ownership. This search also checks for outstanding liens, tax arrears, court judgments, and building violations that could interfere with the sale. If any issues arise, the seller must resolve them before the property can close. A clean title is non-negotiable; without it, the buyer cannot take ownership.

Obtaining a Mortgage (If Applicable)

If you're financing your purchase, your next big step is getting mortgage approval. Even if you already have pre-approval, your lender still needs to underwrite the loan formally. That means verifying your financials, conducting a property appraisal, and ensuring the home meets lending standards. Once the bank is satisfied, they issue a loan commitment letter, which confirms you're approved. Before the closing date, your attorney will review the loan terms and verify that the mortgage is fully cleared to close.

Performing Inspections

While inspections are not required by law, they are strongly recommended, particularly for single-family homes or townhouses. The buyer hires a licensed inspector to assess the property's structure, systems, and safety. For co-ops and condos, inspections are generally more limited to the unit. However, buyers should review building-wide concerns as part of their attorney's due diligence. It's common for the inspection to take place before signing the contract, allowing the buyer to walk away or renegotiate if significant problems are found.

Negotiating Repairs or Credits

If the inspection reveals issues, don't panic. This is where your attorney helps you negotiate. You might ask the seller to make repairs, reduce the purchase price, or offer a credit at closing. These negotiations usually happen before the contract is signed, which gives both parties more flexibility. Making changes gets harder once the contract becomes binding unless specific repair provisions are written in. Legal remedies may still be available if a serious undisclosed issue pops up later, but they can complicate and delay closing. That's why it's best to handle repair discussions early.

Obtaining Title Insurance

Once the title is clear, the next step is buying title insurance. If you're using a mortgage, your lender will require it. But even if you're paying cash, getting title insurance is still smart. This one-time policy protects you from future claims against the property, including hidden defects, errors in the public record, or even unknown heirs trying to stake a claim. Your attorney will ensure the policy is issued correctly before closing, and that all coverage is in place to protect your investment.

Preparing Closing Documents

As the closing date approaches, the buyer's and seller's attorneys, the title company, and the lender coordinate to prepare the closing documents. These include the deed, transfer tax filings, mortgage paperwork, affidavits, and a final settlement statement (a HUD or CD form) outlining all the costs involved. The buyer's attorney confirms the amount the buyer must bring to the table. This figure includes the down payment balance, lender fees, prepaid taxes, title charges, and any remaining closing costs.

Closing the Deal

The closing is typically held in person, often at the office of one of the attorneys or the title company. In attendance may be the buyer and seller (or their representatives), their attorneys, the title closer, and the bank attorney if there's a mortgage involved. All parties sign the required documents during the meeting, funds are disbursed, and the title is officially transferred. The buyer takes possession shortly after, depending on the terms of the deal. The transaction is considered fully complete once the deed is recorded with the county.

At Curcio Law PLLC, we know that navigating a real estate transaction in New York can feel overwhelming without the proper guidance. That's why we're here to walk you through each step with clarity, confidence, and care. Whether buying your first home or selling an investment property, our attorneys provide thoughtful, detail-oriented legal support designed to protect your interests and keep your deal on track. Ready to move forward? Contact us today to schedule a consultation and see how we can help.