client is consulting with lawyer about real estate closing process

Real Estate Closing Process: Tips for Buyers & Sellers in New York

The real estate closing process in New York can be complex, especially for first-time buyers and sellers. From contract signing to final walkthroughs and fund transfers, each step involves legal, financial, and logistical considerations. Whether you are purchasing a coop or condo in New York, understanding the closing timeline and preparing accordingly can help you avoid delays and costly mistakes.

At Steketee Law Firm, our New York real estate attorneys can help you with your closing and other real estate needs. We have years of experience to put at your disposal. Schedule a meeting today to learn more.      

What Is a Real Estate Closing?

A real estate closing is the final step in a property transaction where ownership officially transfers from seller to buyer. In New York, closings are typically attorney-driven, meaning both parties are represented by legal counsel throughout the process. The closing culminates in the signing of documents, payment of funds, and recording of the deed.

Typical Timeline in New York

While timelines vary, the average closing in New York takes 30 to 60 days from contract execution. Factors such as financing, title clearance, and co-op board approvals (if applicable) can affect the schedule.

Key milestones in a New York closing include:

  • Contract Signing: Buyer and seller agree to terms; attorneys review and finalize.
  • Attorney Review Period: Parties negotiate contingencies and disclosures.
  • Title Search & Clearance: Seller’s attorney orders title report; any liens or encumbrances must be resolved.
  • Mortgage Commitment: Buyer secures financing and provides commitment letter.
  • Final Walkthrough: Buyer inspects the property to confirm condition.
  • Closing Day: Parties meet to sign documents, transfer funds, and record the deed.

Tips for Buyers

1. Hire an Experienced Real Estate Attorney

In New York, legal representation is essential. Your attorney will review the contract, conduct due diligence, and ensure the title is clear before closing.

2. Understand Closing Costs

Buyers in NY should budget for:

  • Title insurance
  • Attorney fees
  • Mortgage recording tax (if applicable)
  • Bank fees and escrows
  • Transfer taxes (sometimes for new construction)

3. Secure Financing Early

Delays in mortgage approval can derail the closing timeline. Submit all required documentation promptly and stay in close contact with your lender.

4. Review the Title Report

Ensure there are no outstanding liens, judgments, or easements that could affect ownership. Your attorney will handle this, but ask questions if anything is unclear.

5. Conduct a Final Walkthrough

Inspect the property within 24 hours of closing to confirm it is in agreed-upon condition. Check that repairs have been made and appliances are functioning.

Tips for Sellers

1. Prepare for Attorney Review

Have all property disclosures, certificates of occupancy, and relevant documents ready. Your attorney will use these to draft or review the contract.

2. Resolve Title Issues Early

Unpaid taxes, open permits, utility bills, or old mortgages can delay closing. Work with your attorney to clear any encumbrances before the title search.

3. Understand Your Closing Costs

Sellers in NY typically pay:

man is signing documents
  • Transfer taxes (NYC and NY State)
  • Attorney fees
  • Broker commissions
  • Payoff amounts for existing mortgages

4. Vacate the Property on Time

Unless otherwise agreed, the property should be empty and broom-clean by the closing date. Delays can result in penalties or postponed closings. If necessary, the parties can agree to a post closing possession agreement.

5. Be Ready for Adjustments

At closing, prorated adjustments are made for property taxes, utilities, and maintenance fees. Review the settlement statement carefully with your attorney.

Get Help with the Closing Process: Contact a New York Real Estate Attorney

The real estate closing process in New York is highly regulated and attorney-driven. Buyers and sellers should work closely with experienced professionals to navigate legal requirements, avoid delays, and protect their interests. Whether you are buying your first home or selling an investment property, preparation and communication are key to a smooth closing.

Our team at Steketee Law Firm can guide you through the sale or purchase of real estate and the closing process. Contact us today for a consultation.