Law Office of
Michael M. Greenburg, P.C.
Sellers
The seller in a real estate transaction should be focused on the preparation of the property for sale and cooperation with the buyer for a smooth and easy conveyance. Care must be taken in both the Offer and Purchase and Sale stages to identify exactly what obligations the seller is undertaking and under what terms the sale is to take place. Most real estate agreements will state that the seller is conveying the property in "as is" condition as of time of the buyers' home inspection and that no warranties or representations will be of any force and affect after closing. Often times the attorney representing the seller will appear at the closing on seller's behalf under power of attorney allowing the seller to tend to the important obligation of moving on closing day rather than signing papers. The sale proceeds will be provided to the seller following closing and recording of the deed in the form of the closing attorney's IOLTA check or wire transfer, if requested.
SELLER'S OBLIGATIONS
In order to prevent delays the following items must be provided at least 10 days prior to closing:
1. The seller (or seller's attorney) must present a newly prepared deed conveying title to the property to the buyer. The attorney for the seller will typically prepare the deed as part of seller represenation. If the seller does not have an attorney the Law Office of Michael M. Greenburg, P.C., if acting as the closing agent for the buyer or buyer's lender, will prepare the deed for a fee of $125.00.
2. The seller must arrange for a final water reading and bring a paid bill to the closing, or provide the closing attorney with a copy of the unpaid bill for payment at closing. The final water reading is ordered through the town water department.
3. It is the seller's responsibility to notify utility companies of the change of ownership and arrange for final meter readings if applicable.
4. A smoke/co detector certificate must be issued by the appropriate fire department and brought to closing indicating that the property is equipped with legally compliant smoke and carbon monoxide detectors.
5. Title 5 Certification if the property is served by an onsite private sewer.
6. Occupancy Permit if the property is new construction.
7. For condominium units, a certificate as to unpaid common charges (also known as a 6(d) Certificate) is required. This should be in the form of a notarized statement signed by the trustees or board of managers of the condominium certifying that all outstanding condominium fees have been paid through the end of the month of closing.
8. Also for condominium units, a certificate of master insurance indicating that the condominium complex is insured and naming the new lender as mortgagee.
9. The seller must provide a payoff statement on any mortgage(s) or home equity line(s) on the property. These items together with any other liens or attachments on the property must be satisfied in full at or prior to closing and satisfactory arrangements must be made for the procurement of satisfactory release documents.
10. If the property is served by oil heat or propane the seller will typically be entitled to reimbursement of the value of remaining fuel in the tank. In order to accomplish this seller must obtain and provide a tank reading issued by the supplying oil or propane company stating said value.
11. If the seller wishes to have the closing proceeds wired into a specific bank account following closing and recording, seller must provide complete wire instructions including the name and address of the receiving bank, the name and address of the account holder, the bank’s routing number for incoming wires (be careful on this, sometimes the routing number for incoming wires is not what’s written on your checks), and the account number. The closing attorney will charge a fee of around $50 to wire funds. Please note that closing proceeds will not be released until the deed has been recorded and it is, therefore, possible that the funds may not reach your account until the day after the closing. PLEASE ALWAYS CONFIRM ALL WIRE INSTRUCTIONS VERBALLY TO ENSURE AGAINST CYBER-CRIME.