Post Contract and Prior to Closing
The average time for the Closing of a Cooperative sale varies depending on the form of payment. Normally, an “all cash” transaction may take approximately 45 days to close, whereas Cooperative sales with financing take about three (3) months.
Once the Purchaser’s attorney has the fully executed Contract of Sale, Sellers along with their legal counsel and broker must make sure the following conditions are satisfied:
- Lien Search: To make certain that the Unit is free of Liens and/or Judgments the Purchaser’s Attorney shall order a Lien Search. The Lien Search is simultaneously delivered to the Seller’s Attorney. If there is an issue with the Lien Search, the Seller’s Attorney shall arrange prior to or at Closing the satisfaction, termination, discharge or removal of record of any Liens and Judgments.
- Financing/Loan/Mortgage. In the case that the Purchaser is obtaining financing. The Purchaser must apply to his or her lender to obtain a Financing/Loan/Mortgage for the Closing. Typically, it takes approximately 45-60 days for a lender to “clear” the loan for the Closing.
- Board Application. The Purchaser must apply to the Cooperative Board after getting approval for a Financing/Loan/Mortgage. Generally, if a Real Estate Broker is involved with the transaction they will be assisting the Purchaser with the assembly, duplication and submission of the Board Application. The Board Application Package needs to be submitted by the Purchaser by the timeframe as stated in the Contract of Sale. In the “all cash” transaction, the Board Application Package must normally be turned in 10 to 20 business days from the date of the Contract of Sale. If a Purchaser is financing, a Purchaser is generally given 30 calendar days from the date of the Contract of Sale or 3 business days from the date the Loan Commitment Letter was received.
- Board Interview: After the filing of the Board Application Package, a personal interview is scheduled. The Real Estate Broker most likely at this stage shall be assisting the Purchaser in preparing for the Interview. Normally, the Cooperative Board takes about thirty (30 days) to give the Purchaser an answer. The reason for this time frame is the Cooperative Board wants to analyze and understand the Purchaser’s financial condition/situation.
- Board Approval: Once the Board has approved the Purchaser and the loan, if necessary, is “clear to close,” the Purchaser’s Attorney can schedule a Closing Date. It is important to be aware that a Cooperative Purchaser’s preference of a Closing Date will not necessarily be available given how hectic New Yorkers seem to be. However, it will not be Kishner Miller Himes standing in your way to close as our team is available to accommodate a Closing.
- The Apartment/Unit. The property must be left in “vacant and broom clean” condition. The Seller cannot stay beyond the Closing, unless otherwise specified in the Contract of Sale. Therefore, the Seller must at least begin getting ready to remove all belongings from the Premises. Simply put the Seller must remove all personal property, furniture and Tenants, if any, must be absent. If for any sudden reason, a Seller is unable to move out on the Closing day and the Purchaser can spare several more days moving in, an Attorney can be of assistance. A Post Possession Agreement may be drafted to allow Seller to stay beyond the Closing day and the Purchaser in return, will be compensated with rent deductions also known as use and occupancy.