Quote:
Originally Posted by amanapart
Hello,
I am in the process of purchasing a coop in brooklyn and I have been asked to select a settlement/closing agent. Does anyone have any experience and recommendations? The Bank has their own subsidiaries, but I am really interested in shopping around to get the best deal.
Thanks!
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I believe you are confused, as to what you were "asked" to do; and, may be imposing your previous knowledge relating to real estate transactions frrom your home state.
In NYS, attys are required by both parties in the transaction. In many states attys are not required, and 'Closings' are effectuated by "Closing Agents". Title Companies usually act as the Closing Agent. This is not the case in NYS.
If you have found a coop you wish to purchase, then you need to obtain an attorney (it w/b prudent to obtain and consult an atty PRIOR to beginning your search) to review and advise upon the Purchase Agreement. Once both parties have signed to the Purchase Agreement you then need to shop for a mortgage.
The Purchase Agreement, normally, allows for a period of time, and by a certain date, in which the Purchaser must demonstrate and obtain financing in order to purchase the property. This is normally demonstated by the presentation of a 'Commitment Letter' issued by a Lender.
Once a Lender agrees to finance the purchase they will issue you a 'Commitment Letter'. The 'Commitment Letter' obligates the Lender to provide financing at the general agreed terms. The Commitment is normally for a defined period of time, beyond which the Commitment expires.
Once you have a Commitment from a Lender you should bring this to your atty, who will then communicate with the Seller and/or their atty/representative.
From this point your attorney should handle all issues and communications to bring the transaction to a 'close'.
This includes insuring that you meet any further obligations required within the Purchase Agreement, communicating with the real estate broker (and/or Coop Sponsor) usually to arrange for the Coop Board interview and to meet any demands the board requires.
Also, your attorney should handle all issues and communications with your Lender and its atty/representatives. There are many details before a Lender is ready to issue the funds to complete the transaction.
This includes insuring that the Seller/Coop actually owns the property as described in the Purchase Agreement and has the right to convey the property. In so doing, your atty will engage the services of a Title Insurer (company) to effect the due diligence necessary (which will be a requirement of the Lender).
Once the parties involved, Seller, Purchaser; and Lender are satisfied and ready a 'Closing Date' will be chosen and agreed by all parties. This date and all the above must be completed by the date agreed and outlined in the Purchase Agreement, as well as by the date of expiration stated in the Commitment Letter.
If, for any reason, the Closing cannot be completed by by said dates, then an 'extension' must be requested and agreed by the Seller or the Lender or both. If by the Seller, there *may* be some penalty involved; if by the Lender, the mortgage rate and terms *may* be be adjusted.
The above is the very basic outline of a real property transaction. Of course, details regarding fees and taxes differ from transaction to transaction, and with regard to the 'type' of real property.
If you are familiar with real property transactions from another state, you will find NYS to be more involved than most, as NYS has a number of laws and regulations which protect the parties involved, specifically the Purchaser, which do not exist in other States.
It is IMPORTANT to obtain a competent and experienced attorney in real property transactions.
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