At Poulson Law, we understand that purchasing or selling a home or other property can be a major event in your life. Our attorneys and staff will work with you on your contract, complete and file all the necessary paperwork, and help you understand the transaction every step of the way.
The Real Estate Transaction Timeline
Step 1: The Offer and Acceptance
The buyer submits a written offer specifying purchase price, earnest money deposit, closing date, and contingencies. Having an attorney review the contract at this stage is critical — standard form contracts may not adequately protect your interests.
Step 2: Attorney Review
In New York and many other states, the contract is subject to an attorney review period — typically three to five days during which either party's attorney can propose modifications or cancel without penalty.
Step 3: Earnest Money Deposit
After contract signing, the buyer delivers an earnest money deposit held in escrow until closing. The contract should specify what happens to the deposit if the transaction does not close.
Step 4: Contingency Period
Most contracts include contingencies — inspection, financing, appraisal, title, and sale. Each contingency has a deadline. Missing a deadline can result in loss of the contingency.
Step 5: Title Search and Title Insurance
A title search examines public records to verify clear title and identify liens, encumbrances, or defects. Title insurance protects against losses from title defects discovered after closing. Unlike other insurance, title insurance protects against past events. It is a one-time premium providing coverage for as long as you own the property.
Step 6: Survey
A survey shows boundaries, structures, easements, and encroachments. For commercial transactions, a survey is essential.
Step 7: Mortgage Commitment
If financing, the lender issues a mortgage commitment letter specifying loan terms and conditions.
Step 8: Closing Preparation
The buyer's attorney reviews the closing statement, conducts a final walkthrough, and ensures all requirements are met. The seller's attorney prepares the deed and transfer documents.
Step 9: Closing
The final meeting where ownership is transferred: buyer signs mortgage and note, seller signs deed, funds are distributed, and keys are transferred.
Step 10: Post-Closing
The deed and mortgage are recorded. The buyer updates insurance, utilities, and tax records.
Common Issues at Closing
Title defects, repair negotiations, financing delays, and walkthrough issues can all arise. An experienced attorney can resolve most issues, but they may delay closing.
Why You Need an Attorney at Closing
In New York, it is standard practice for both parties to be represented by counsel. Benefits include contract review, title review, problem resolution, document review, and peace of mind.
Frequently Asked Questions
What are closing costs? Title insurance, recording fees, transfer taxes, attorney fees, lender fees. For buyers, typically 2-5% of purchase price.
How long does the process take? Typically 30-60 days for residential, several months for commercial.
What if the deal falls through? The disposition of earnest money depends on the reason — returned if a contingency fails, forfeited if the buyer defaults.
Let Us Guide Your Transaction
Whether you are buying or selling, we are available to help with all your real estate needs. For real estate matters, please contact Jill Poulson at 607-547-1195.
