12 Steps to closing a Title on Residential Real Estate in NYS

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Listing Agreement

Basic contract between the seller and the listing agent (Includes identification of premises being sold, commission to be paid, list price, duration of the contract, and the claw period)

Exclusive Agency

A type of listing agreement where the listing agent is the only agent to list the property, but the seller has a list of people who, if they purchase the property, there is no commission to be paid

Exclusive Right to Sell

Realtor because exclusive agent and has exclusive rights to sell the property

Listing Agent

fiduciary of the seller, represents seller by looking out for their best interest

Selling Agent

fiduciary of the seller, represents seller by finding a ready, willing, and able buyer

Buyer’s Agent

fiduciary of the buyer, represents buyer by finding property for buyer to purchase

Purchase Agreement

Agreement includes purchase price, identification of property being sold, down payment amount, contract day, closing day, and conditions for sale. requires a consideration for the contract to be valid.

Inspection Phase

buyer of property must pay for and enact inspections (includes water, radon, mold, structure, mold, etc.), can help negotiate the process of the property down

Contract of Sale

purchaser signs first, seller signs second. the date the seller signs is the day the contract is dated—also known as “Contract Day”

Inspection Phase pt. 2

handle any inspections not carried out in step three and are mentioned in the contract

Mortgage Commitment

contract between a lender and a borrower, lender considers the following: Contract of sale, proof od downpayment with verification of source, appraisal, credit score, verification of income

Title Search

proves that the seller is the true owner of the property

Chain of ownership

a 60-year chain of owner history

Encumbrances

open mortgages, judgements, tax liens, etc.

Title Polices

since the title search is performed by humans and subject to error, this policy protects the new owner and the lender from claims against the property

Fee Policy

Owner’s Policy for the new owner

Mortgage Policy

Lender’s Policy for the new lender

Survey

a map of the property and written description of the boundary of the property

Metes & Bounds

a precise mathematical description of the boundary of real property—uses landmarks to provide he precise location of the boundary line

Subdivision Plat Reference

a brief description that refers to premises by lot # on a filed subdivision map

Municipal Search

going to the local government office to learn about the legality of the property

Certificate of Occupancy

takes a building is safe and legal to use

Certificate of Compliance

the structure (shed, fence, pool, etc.) complies with the code/rules of the area

Street Report

tells you if the roads in front of your house is a private road (taken care of by owner) or a municipal road (taken care of by city)

Pre Date Letter

Letter for a house that predates the code

Violations

The building inspector has been to the property and checked for violations (lack of permits, illegal apartment violation, etc.)

Final Walk Through

usually happens between 48-2 hours before closing, buyer checks for any major changes (property damage/debris/taking item that should have stayed/etc) before closing day

Closing Adjustments

tax adjustments, rents, fuel oil (repaying seller for any oil left in tank)

Closing Day

the grantor (seller) gives a deed to the grantee (buyer), the mortgagor (buyer) pledges a mortgage to the mortgagee (lender/bank/credit union), deed must be recorded before the mortgage

Mortgage

a pledge of real property as security for the repayment of a debt