At the Law Office of Jeanne Reardon, the health and safety of our staff and clients is our top priority. Since you
rely on us for your legal needs, we remain
ready to help you in this difficult time as we face many health and financial challenges. Accordingly, we are taking a number of steps to minimize health risks during this health crises while serving our current clients as well as new clients coming on board.
law firm will be adhering to the guidelines presented by the Centers
for Disease Control and our local health officials, and we continue to
monitor them for updates as they are released. We have implemented a plan to protect the safety of our work
environment while allowing us to continue to service all of our clients.
We are taking precautions with respect to
non-essential meetings and face-to-face interactions. That includes
telephone consultations and conference calls whenever possible. With respect to our real estate practice,
we will endeavor to utilize Powers of Attorney, pre-signed deeds, and Escrow Closings, where available,
in order to close title when the transaction permits us to do so.
Do not hesitate to contact us if you have any questions or
concerns regarding your current real estate transaction or if you are just getting started and are looking to hire a real estate attorney for an upcoming sale or purchase of a home. As always, we are committed to
handling our clients' matters with the utmost care and respect, and are available to assist both current and new clients.
We hope that you and your family remain safe and healthy!
Jeanne Reardon, Esq.
On October 3, 2015, the Consumer Financial Protection Bureau’s (CFPB) new
mortgage disclosure law, also known as the TRID went into effect. TRID will
help consumers be more informed regarding the closing cost.
Here are 11
things you should know about the new law:
1. Initial Good Faith Estimate (GFE) and Truth in Lending disclosure (TIL)
are now combined into one new form called the Loan Estimate (LE).
2. Instead of the old forms such as the HUD-1 and Final TIL we now have the
Closing Disclosure (CD). Most major lenders will prepare the CD for the
borrower; some however may rely on settlement agents. The new form will
describe the loan terms, projected loan payments, closing cost at closing, loan
features such as assumption, escrow details, borrower’s liability at
foreclosure and others. The Sellers will also have a CD statement.
3. The CD will be provided by the Lender to the consumer/borrower at least
three days prior to the scheduled closing date but can be waived if consumer
has a “bona fide emergency”.
4. The Lender will now provide the borrower with list of closing service
providers so that they can shop for services.
5. If the following changes occur then a new CD must be issued with an
additional 3 day waiting period:
- APR changes 1/8 of a percent
Pre-payment penalty added to your Note
Loan is changed from fixed to variable, negative amortization
6. Closing fees subject to zero tolerance unless otherwise excepted.
- 10% tolerance for charges paid to third parties-charges cannot increase by
more than 10%
no tolerance-charges can increase without limits if originally disclosed
0% tolerance- charges cannot increase at all
7. How do you determine what category you fall in?
- Does lender allow borrower to shop for the third party services? If third
party provider is on the bank list, there is a 10% tolerance, if not on the
list there is no tolerance.
8. Fees that can’t increase:
- fees to brokers or creditor
charges to an affiliate of broker or creditor
charges to an unaffiliated third party – if consumer not allowed to shop
9. Any variation of the above must be refunded no later than 60 days after
10. Seller will receive CD by or at closing. This will be prepared by the
bank attorney in addition to the statement provided by the Seller’s lawyer.
11. TRID will not apply
to: HELOCS, Reverse Mortgages, Commercial Loans and lenders who make 5 or less
loans per year.
The Closing process will be more organized, with all the numbers worked out
about a week prior to closing so there are no surprises on the closing day.
Whether you are buying or selling a home, your team of expert advisers
should include a real estate closing attorney.
Real estate closings are complicated matters and require a thorough knowledge of the law.
With a decision as serious as buying and selling real estate, it is
important that you are guided throughout every step of the
closing process by an experienced and knowledgeable real estate lawyer.
The purchase of a home
is often the single largest financial transaction you will
ever make in your life. Why not ensure that all your bases are covered
by retaining a
closing lawyer to represent your interests and guide you through the
How a Closing Lawyer Can Help
real estate attorney performs many time consuming tasks preparing for a
closing. A real estate closing involves a series of complex phases:
contract drafting and
negotiation, document review, examination of the title, completion
and explanation of legal documents, and resolution of any possible
title difficulties. An experienced real estate attorney oversees the
entire process so that you are not overwhelmed by the
paperwork involved, the disclosures that need to be made, inspections,
loan documents, title insurance and affidavits, and unforeseen issues
that can suddenly turn a sure sale into a disaster.
Drafting and Negotiating the Contract of Sale
Since real estate attorneys have sophisticated
experience with many types of real estate transactions, it is prudent
for a buyer or seller to ask their real estate lawyer to negotiate the
terms and conditions of their real estate deal. Once the negotiations are complete,
the real estate attorney drafts the
real estate contract, also
known as the Contract of Sale, which incorporates all the terms of the
transaction as negotiated. There are also other numerous documents
associated with a real estate closing. It can be hard to review and
understand all of them.
Missing even one clause can change an entire legal document so it is
important to have a trained real estate attorney aid in the process so
that no issue is overlooked and everything is done in your best interest.
real estate attorney examines the title records for prior conveyances, unpaid mortgages,
liens, judgments, easements, and other encumbrances and clouds on title. They
verify that the seller has the authority to convey a good title to the property
and that no errors exist in the deeds in the chain of title.
real estate attorney prepares all relevant information into one set of
closing statement should be prepared prior to the closing indicating
the debits and credits to the buyer and seller. An attorney is helpful
in explaining the nature, amount, and fairness of closing costs. If the
attorney is representing a seller, the attorney would also prepare the
deed and state transfer tax documents. At the closing, the attorney
provides detailed explanations of the
documents to insure that the parties understand all issues involved in
the transaction and the disbursement of the funds.
Attend the Closing
actual closing day is the most important phase in the purchase and sale
transaction and having a real estate attorney there to represent you is
passes from seller to buyer, who pays the balance of the purchase price.
The deed and mortgage instruments are signed, and your attorney can
assure you that these documents correctly reflect all the terms of the
transaction and are appropriately executed. There
may also be last minute disputes about issues arising during the final
walk-through and delivering possession or the adjustment of various
costs, such as fuel and water. If you are represented by an experienced
real estate attorney you can rest assured that these issues will be
properly addressed and your interests protected which might not
necessarily be the case if you are not represented by an attorney.
Retain Closing Lawyer Jeanne M. Reardon
M. Reardon is a Long Island real estate attorney who has handled
thousands of closings during her over 20 years of practice. She has
with any possible issue that may arise in a real estate transaction and
will advise you regarding your selling or purchasing of a home during
each step and phase of a real estate transaction. Call her today if you
plan to sell or buy a home in the Long Island or the Greater New York
area at (516) 314-8433.
Purchasing a home involves more out-of-pocket expense than just the down payment. There are also
closing costs to pay for items such as title policies, recording fees,
inspections and fees that a lender charges for obtaining a mortgage. The following schedule is an estimate of the closing costs that a buyer can typically expect to pay at closing.
PURCHASER’S REAL ESTATE CLOSING COSTS:
Taxes: (if applicable)
Mansion Tax 1% of purchase price when $1,000,000 or over
Mortgage Recording Tax (NYC)
• Sales under $500,000 1.8% of entire mortgage
• Sales $500,000 and over 1.925% of entire mortgage
Mortgage Associated Fees:
Origination Costs – points varies, usually 0 - 3% value of loan
Appraisal $350 (approx)
Underwriting $450 (approx)
Processing $450 (approx)
Application $350 (approx)
Bank Attorney $850 + up
Real Estate Tax Escrow 2-6 months
Short Term Interest varies, depends on the day of the month in which the closing occurs
Title Insurance Fees:
Owner and Lender Title Policies 5% - 7% of purchase price (approx)
Municipal Searches $450 (approx)
Deed Recording $375-750 (approx based on county)
Real Estate Taxes varies
Note: Purchasers of cooperative apartments usually do not purchase title
insurance, and instead pay for a lien search which is approximately $450. However, see our blog entry, Co-op Buyers Should-Consider Purchasing Title Insurance, which explains particular situations in which it is advisable for purchasers of cooperative apartments to purchase a type of title insurance policy called an Eagle 9 policy.
Policy varies depending on lender's required coverage and purchase price
Home and Termite Inspection $450 (approx)
Purchaser's Attorney fee varies, but usually flat-fee basis (consult with your attorney)
The following schedule shows estimated closing costs
when selling real estate. These costs are just estimates
and should be reviewed with your attorney.
SELLER’S REAL ESTATE CLOSING COSTS:
Property Transfer Tax 0.4% (.004) of purchase price
NYC Real Property Transfer Tax
(Usually paid by Seller,
except on new contruction sale)
• Sales under $500,000 1% of purchase price
• Sales $500,000 and over 1.425% of purchase price
Gains Tax Withholding
of state seller) 8.82% of gain
Resident (FIRPTA) 10% of price
withheld or paid
Mortgage Payoff Fees:
Pick-up/payoff fee $150-$250
Recording Satisfaction $100-$300 each
Real Estate Broker Fee:
Commission 6% of purchase price (negotiable)
Seller's Attorney fee varies, but usually flat-fee basis (consult with your attorney)