4 years ago

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Seller Closing Checklist for Sellers in NYC

Congratulations on getting a signed contract for the sale of your home! Sellers often wonder what they should be doing during the contract to closing process, especially since much of the work during this time is on the buyer’s side.

The following seller closing checklist takes New York home sellers through the entire process, from clearing up any liens or violations, finding original ownership documents to what to bring on closing day. Skip to any section below using our table of contents, and leave us a comment below if you have any questions!

Clear up any liens, judgments or violations

Buyer’s attorneys will typically run a title search or a co-op lien search during the due diligence phase, before signing a contract, to determine whether there are any outstanding liens, judgments or violations. If any are found, most buyers will balk at going through with the purchase, and most buyer’s attorneys will recommend that the issues be cleared up first before proceeding.

However, in the case that the purchaser decides to proceed anyway, the buyer’s attorney will ensure that the contract not only stipulates that the property must be delivered free and clear of title, but also free and clear of any liens, judgments or violations that have been found.

Request a payoff statement for each lien or encumbrance on your property, including mechanic’s liens, tax liens and any other claims.

For example, if there’s an outstanding mechanic’s lien on your property from an unresolved dispute with your plumber, then now is the time to settle the claim. Either negotiate a discount or simply pay what is owed.

In a similar vein, you may have already gone to small claims court, lost and now have a judgment against your property. Since judgments may not be appealed, now is the time to pay the judgment and move on.

The same logic applies to any violations your home might have from the NYC Department of Buildings. Hire an expediter if need be to speed up the process of clearing up the violation.

Remember, liens and judgments can be cleared up prior to or at closing; however, buyers will generally expect and appreciate these items to be dealt with before the 11th hour.

Violations on the other hand generally need to be cleared up prior to closing, as not only might they take time, but because clearing a violation might not strictly be related to the flow of funds on closing day.

Request a payoff statement from the bank if you have a mortgage

Now is the time to also request a payoff statement from your bank if you still have an outstanding mortgage on your property. After all, your lender has perhaps the most senior lien possible, and this lien will need to be paid off at closing.

Some banks will allow you to download a payoff statement automatically from your account online. If this isn’t an option, ask your mortgage broker or bank for the payoff statement and give them a heads up that you’re selling your place. Once you get the payoff statement, hand it to your attorney.

Make any repairs that the contract is contingent on

In New York as in many other states, homes are typically sold as is, meaning that the seller will not have to make any repairs to the property as a condition of the sale.

However, everything is negotiable, and it is conceivable in a buyer’s market that a desperate seller will agree to make repairs or even upgrades as a condition in the purchase contract.

Therefore, in the event that you have agreed to make contractual repairs prior to closing, it’s important to get multiple quotes from contractors as soon as possible.

There’s a saying that renovations always take twice as long and cost twice as much as you’re initially quoted in New York.

Repairs and fixes are common in new construction sales

It’s important to point out that while selling property “as is” is the norm when it comes to re-sales, new development sales are entirely different. In a new construction sale, defects are generally expected, and it’s customary for buyers to develop a punch-list of repairs that they wish to be done before or shortly after closing.

Find original ownership documents

Once you’re in contract, you’ll need to start gathering up your original ownership documents which you’ll need at closing.

For condos and houses, this means the original deed. For co-ops, this means the original stock certificate which states how many co-op shares you own as well as the original proprietary lease.

Save 6% When Selling in NYC: https://www.hauseit.com/agent-assisted-fsbo/
NYC Seller Closing Cost Calculator: https://www.hauseit.com/closing-cost-estimator-for-seller-nyc/
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Hauseit LLC, Licensed Real Estate Broker
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