A real estate closing is an essential part of the process of buying or selling any building or undeveloped lot, and typically it is more of a formality than anything else. Despite this, however, there is always the chance of something going awry at the last minute, even with extensive negotiation and preparation. But what exactly is involved in a real estate closing, and how might things go wrong when it happens?
What is a Real Estate Closing?
Put simply, a real estate closing is when a buyer and seller meet to finalize the sale of a parcel of real estate, such as a house or commercial building. Until closing, the transaction is not yet finalized, and both sides can still potentially pull out of the deal. Once the closing is finished, however, the buyer will become the new legal owner of the property, with the seller transferring ownership over to them.
What Happens During Closing?
During closing, both the buyer and seller will sign any relevant paperwork related to the transaction, including the contract, financing documents, and anything else relevant to the transaction. Both sides will also need to settle any relevant closing costs, such as any legal fees or taxes from the transaction, as well as the cost of inspections, insurance, and anything else required by the contract. This is also typically when the real estate agents involved in the transaction, if any, will receive their commission.
What Can Go Wrong During Closing?
While a real estate closing is typically banal, there is always the chance that something may go wrong. For example, it may be found that one or both sides failed to comply with their end of the real estate contract, or it may be found that there is some previously undisclosed issue with the property that was not handled during negotiations. There is also the chance that there may be an unexpected dispute over the terms of the contract, or one side may get cold feet and try to back out for no reason in particular.
What Should You Do?
Ideally, any problems with the transaction will be handled prior to finalizing the transaction, but that is why you should make sure to have a lawyer present at closing. They can help you handle any outstanding legal issues that may arise, and negotiate on your behalf to settle any disputes between yourself and the other party to the transaction. That way, you can minimize your chances of having the sale sabotaged due to unforeseen problems.
For more than 50 years, the New York lawyers at Elovich and Adell have represented clients like you in real estate cases. Our attorneys, conveniently located in Long Beach, handle personal injury, real estate, commercial transactions, criminal defense, and labor and employment claims all across New York State. For a consultation, please call us at 516-432-6263 or visit our contact page for more information.
