NYC Closings: From Contract to Keys—The Checklist I Use
Due diligence, title clearance, violations, lender coordination, and deal-killers to spot early in NYC closings. A stress-tested checklist for smooth transactions.
After handling hundreds of NYC real estate closings, I've learned that the key to a smooth transaction is thorough preparation and attention to detail. NYC closings are particularly complex due to the city's unique regulations, multiple agencies, and tight timelines.
This checklist will help you navigate the closing process and avoid common pitfalls that can derail your transaction.
Pre-Contract Due Diligence
The foundation of a successful closing is laid during the due diligence period. This is your opportunity to identify potential issues before they become deal-killers.
Property Inspection Checklist
Structural and Mechanical
- Foundation and structural integrity
- HVAC systems and ductwork
- Plumbing and water pressure
- Electrical systems and capacity
- Roof condition and drainage
Safety and Compliance
- Fire safety systems
- Emergency exits and egress
- Lead paint and asbestos
- Mold and moisture issues
- Accessibility compliance
Building Systems
- Elevator maintenance and certification
- Boiler and heating systems
- Water heater and hot water
- Garbage disposal and recycling
- Security systems
Document Review
Essential documents to review during due diligence:
- Property survey and floor plans
- Certificate of occupancy
- Building permits and approvals
- Property tax records
- Insurance policies and claims history
Title and Legal Issues
Title Search and Clearance
A clean title is essential for a successful closing. Key areas to address:
Title Issues
- • Liens and encumbrances
- • Easements and restrictions
- • Boundary disputes
- • Ownership disputes
- • Missing heirs or parties
Legal Requirements
- • Power of attorney issues
- • Estate and probate matters
- • Corporate authority
- • Partnership agreements
- • Trust documentation
Common Title Problems
- Unpaid property taxes or assessments
- Mechanic's liens from construction work
- Judgment liens from lawsuits
- Mortgage liens from previous loans
- Easements for utilities or access
Violations and Compliance
Agency Violations
NYC properties can have violations from multiple agencies. Check for:
DOB Violations
- Work without permits
- Building code violations
- Safety violations
- Zoning violations
FDNY Violations
- Fire safety violations
- Sprinkler system issues
- Emergency exit problems
- Fire alarm violations
HPD Violations
- Housing maintenance code violations
- Lead paint violations
- Heat and hot water issues
- Pest control problems
Violation Resolution
When violations are found, consider:
- Cost of correction
- Time required for resolution
- Impact on closing timeline
- Responsibility for correction
- Escrow arrangements
Lender Coordination
Loan Requirements
Lenders have specific requirements that must be met before closing. Key areas include:
Property Requirements
- • Appraisal and valuation
- • Property condition
- • Insurance requirements
- • Environmental issues
- • Zoning compliance
Documentation
- • Title insurance
- • Survey and floor plans
- • Certificate of occupancy
- • Insurance policies
- • Financial statements
Common Lender Issues
- Appraisal value below purchase price
- Property condition concerns
- Title issues or defects
- Insurance requirements
- Documentation delays
Closing Day Preparation
📌 Michael's Pro Tips
- • Prepare early: Start closing preparation as soon as the contract is signed
- • Stay organized: Keep all documents in a secure, accessible location
- • Communicate regularly: Maintain open lines of communication with all parties
- • Plan for delays: Build buffer time into your closing schedule
- • Review everything: Double-check all documents and calculations
Pre-Closing Checklist
Documents to Bring
- Government-issued photo ID
- Certified funds for closing costs
- Insurance policies and proof of payment
- Power of attorney (if applicable)
- Any required affidavits or declarations
Final Preparations
- Confirm closing time and location
- Verify all parties will be present
- Review closing statement
- Confirm wire transfer instructions
- Prepare for post-closing tasks
Common Closing Day Issues
- Missing or incorrect documents
- Wire transfer delays
- Last-minute title issues
- Lender funding delays
- Party availability conflicts
Post-Closing Tasks
Immediate Tasks
After closing, several tasks must be completed promptly:
Recordation and Filing
- Record deed with county clerk
- File transfer tax returns
- Update property tax records
- Notify utility companies
Property Management
- Change locks and security codes
- Update insurance policies
- Schedule property inspections
- Address any immediate maintenance needs
Ongoing Responsibilities
- Maintain property insurance
- Pay property taxes and assessments
- Comply with all applicable regulations
- Maintain property in good condition
- Keep detailed records of all transactions
Resources & Next Steps
About the Author
Michael Nacmias, Esq. is a NYC-based attorney with over 20 years of experience handling real estate closings, OATH hearings, landlord-tenant disputes, and property transactions across all five boroughs. He has successfully closed hundreds of complex real estate transactions.
Michael understands the intricacies of NYC real estate closings and helps clients navigate the complex process effectively. His practice focuses on practical solutions that protect his clients' interests while ensuring smooth and successful transactions.
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Legal Disclaimer: This article is for informational purposes only and does not constitute legal advice. Every situation is unique, and you should consult with an attorney. This is attorney advertising. Prior results do not guarantee similar outcomes.