Buyer's Closing Guide

What is a closing?

The closing is the grand finale. It is the event where the purchaser gives the seller monies in exchange for ownership. This bargained for exchange or consideration transfers ownership of the property. The seller will also need to sign different documents including a new deed. The place of closing is normally at the bank attorney’s office. The parties present will be: seller, bank attorney, brokers, seller's attorney, buyer's attorney and title closer.

What items are typically included in closing costs?

  • Appraisal Fee
  • Attorney Fee
  • Credit Report
  • Document Preparation fee
  • Escrow (Taxes, Insurance)
  • Inspection Fee
  • Insurance
  • Interim Interest
  • Mortgage Insurance Premium
  • Origination Fee
  • Points
  • Recording Fee
  • Survey
  • Title Insurance and Search
  • Condo Board Application or Co-op flip tax
  • Managing agent fee

There are other fees which may arise depending on whether the property is a condo or co-op. Our sales representatives would be happy to discuss these with you. For more information see our Necessary Funds page.

How long does it take to close?

The average sale can take anywhere from 3-5 months to close depending on a host of different factors. These factors include but are not limited to: mortgage & financing, co-op board approval and the negotiation process.

How much money will I need to purchase the property?

The amount of money needed to purchase the property will vary depending on whether the property is a single or two family dwelling, co-op or condo. We recommend being prepared to pay about 25% although some properties may accept a smaller percentage for qualification. You will also need to set aside additional monies for closing costs.

What is the contract of sale?

The contract of sale represents the binding agreement between the purchaser and the seller. The contract of sale specifically details the rights and obligations of both parties and the terms of the sale.

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