What a Long Island Real Estate Closing Lawyer Checks before Closing

General Obligations Law § 5-703 generally requires a written sale contract or sufficient memorandum signed by the party against whom enforcement is sought. Check escrow arrangements, notices, and the closing date. A stated date is not necessarily a time-of-the-essence deadline; the agreement and any legally sufficient notice determine the effect of delay.

Real Property Law § 462 generally requires a seller's signed Property Condition Disclosure Statement before a buyer signs a binding contract for a covered one- to four-family home. Condominium units, co-ops, and certain transfers are excluded. Buyers should obtain an independent inspection and check contingency deadlines. The disclosure does not replace an inspection, and an “as is” clause does not automatically eliminate statutory duties.

A mortgage commitment may require further underwriting or an acceptable appraisal. Compare those conditions with the financing contingency. A denial does not automatically return the deposit; contract terms, the reason for denial, and timely notice control. Keep lender correspondence documenting the denial.

A title search may reveal unpaid taxes, mortgages, judgments, easements, or description errors. Confirm which items require removal and which the buyer will accept. Check payoff letters and how satisfactions will be recorded; payment alone does not put a satisfaction in the public record. Title insurance covers only risks within the policy, subject to exclusions.

Compare surveys with fences, driveways, and additions. Check permits, occupancy certificates, and violations with the town or village. Depending on the parcel, examine flood, wetlands, or septic records. Resolve concerns affecting intended use or financing.

A missed financing deadline may affect deposit rights. A seller may need time to remove a lien. Document extensions, new dates, and escrow terms. Before cancellation, review the contract's grounds and deposit provisions; see termination of a real estate contract.

At the final walk-through, check property condition, repairs, and possession. Confirm lender approval, signatures, payoffs, and credits. An agreed holdback or adjournment may address defects, but neither is automatic. Verify wire instructions by calling a trusted number.

Contract or title disputes may reach the appropriate county's Supreme Court. NYSCEF serves covered civil filings, subject to exceptions, but not deed recordings. Litigation deadlines depend on the claim; contract notice deadlines may be earlier.

For covered mortgages, 12 C.F.R. § 1026.19(f) generally requires the borrower to receive a Closing Disclosure at least three business days before consummation. Compare rates, fees, and cash to close with the Loan Estimate. Certain APR inaccuracies, loan-product changes, or new prepayment penalties restart the waiting period. Cash purchases and certain mortgage products are not covered. Other corrections may not restart the waiting period.

Check mortgage payoffs, interest, tax prorations, utilities, and repair credits. Request an itemized explanation for differences between the Closing Disclosure and settlement statement. Match the final figures to the available funds.

Certain nonresident sellers must file Form IT-2663 and pay estimated state income tax when recording, unless exempt. Federal FIRPTA withholding may separately apply to foreign sellers. The two obligations have separate tests and exemptions; review both before calculating the seller’s proceeds.

Deed filings generally involve state forms RP-5217 and TP-584. Nassau accepts in-person, mail, and electronic submissions. Suffolk requires a recording and endorsement page and has acknowledgment and formatting rules. Check current county fees and document requirements to avoid a rejected submission.

Tax Law §§ 1402 and 1402-a govern the general transfer tax and additional tax on qualifying residential transfers of $1 million or more. The graduated tax in § 1402-b applies to cities of at least one million residents, not Nassau or Suffolk. East Hampton, Riverhead, Shelter Island, Southampton, and Southold have Peconic Bay preservation taxes. Check any locally adopted housing tax under § 1449-bb, exemptions, and property transfer tax calculations.

Delivery does not equal recording. Under Real Property Law § 291, an unrecorded deed may lose priority to a later good-faith purchaser for value who records first. Obtain confirmation that the deed was accepted and recorded. Retain the final settlement statement, title policy, and mortgage satisfaction records. See deed recording.