The process of closing on a home in Buffalo can seem daunting for both first-time buyers and seasoned investors. With a variety of legal steps, deadlines, and paperwork, it is crucial to have the right team of professionals by your side. Attorneys play an integral role in ensuring the entire process runs smoothly, protecting your interests, and avoiding any pitfalls that might derail your plans.
Richard H. Cole
Partner
Thomas F. Hewner
Partner
Donna L. Haslinger
Partner
Vivian P. Roche'
Partner
Keith R. Rosso
Attorney
Tasha D. Frazie
Attorney
Tyler I. Wood
Attorney
Marc A. Cangé
Attorney
Teresa M. Cappiello
Attorney
In this comprehensive checklist, we’ll break down the essential steps an attorney should take to guide you through the closing process, from reviewing your contract to the final handover of keys. Whether you’re buying your first home or adding another property to your portfolio, understanding the steps in detail will ensure you’re prepared for a successful closing.
1. Review and Negotiate the Real Estate Contract 
The real estate contract is one of the most important documents you’ll encounter during the home-buying process. This contract outlines the terms of the sale and establishes the legal framework for the transaction. As a buyer, it is crucial that an experienced attorney thoroughly reviews the contract before you sign.
An attorney’s role in reviewing the contract goes beyond just reading the fine print. They will look for any terms that could be potentially harmful to you as the buyer and negotiate changes to protect your interests. A few of the key elements an attorney will focus on include:
- Price and Payment Terms: An attorney ensures that the purchase price and any agreed-upon payment methods are clearly outlined. This includes how much you need to deposit upfront and the timeline for remaining payments.
- Contingencies and Conditions: These clauses are critical as they allow you to back out of the deal under certain conditions. Common contingencies include financing, appraisal, and home inspection contingencies. Your attorney will make sure that these contingencies are written in your favor and give you enough protection should you need to terminate the agreement.
- Closing Date: The closing date is one of the most important details. It must be realistic, considering your financial arrangements, the seller’s timeline, and any necessary repairs or inspections. If the proposed closing date is not ideal, your attorney can negotiate an extension or adjustment.
2. Conduct Title Examination and Secure Title Insurance
Before closing on a property, you want to make sure that the property’s title is clean and that no one else can lay claim to it. This process, known as title examination, is conducted by an attorney to ensure that the seller legally owns the property and has the right to transfer ownership to you.
An attorney will also assist you in obtaining title insurance, which protects both you and the lender in case any unforeseen legal issues arise regarding ownership. Title issues could include:
- Unpaid Liens or Mortgages: If there are any outstanding debts on the property that the seller has not settled, they could become your responsibility once you take ownership. A title examination will reveal such debts and prevent future complications.
- Boundary Disputes or Ownership Claims: In some cases, there may be disputes regarding the property’s boundaries or previous owners may have claims that could affect your ability to use the property as intended. A thorough examination will uncover such issues.
- Title Insurance: After ensuring there are no problems with the title, your attorney will help you secure title insurance, which protects your interests in case any title-related issues arise post-purchase.
3. Prepare for the Home Inspection and Appraisal
Home inspections and appraisals are standard steps in the home-buying process. However, many buyers underestimate the importance of having an attorney involved at this stage. A home inspection ensures that the property is in good condition and that no major repairs are needed. A professional appraisal, on the other hand, helps establish the market value of the property.
- Home Inspections: As a buyer, you want to make sure the home is free from structural or mechanical issues. Attorneys can guide you on how to use the inspection results in negotiations with the seller. If significant issues are discovered, your attorney can negotiate for repairs or a price reduction.
- Appraisal Issues: If the home appraisal comes in lower than expected, it can affect your financing. Your attorney will help you navigate this situation and may assist in renegotiating the sale price or working with the lender to secure the financing necessary to complete the purchase.
- Legal Implications of Findings: If the inspection uncovers any significant issues such as mold, foundation problems, or outdated electrical wiring, an attorney can advise you on the best course of action. They will ensure that any necessary repairs are clearly stipulated in the sale agreement and are carried out to your satisfaction.
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4. Review and Secure Financing
Securing financing is often the most critical component in the home-buying process. A skilled attorney will help ensure that the financing process is completed correctly, protecting your rights in the mortgage agreement.
- Review Loan Documents: Your attorney will review the loan documents to ensure that the terms are favorable to you. This includes examining the interest rate, repayment schedule, and any clauses related to early repayment, penalties, or fees.
- Understand Closing Costs: An attorney will help you understand the full scope of closing costs beyond just the purchase price. These costs may include property taxes, attorney fees, title insurance, and other related charges.
- Clarify the Mortgage Commitment: Before closing, you’ll receive a mortgage commitment letter from your lender outlining the loan terms and conditions. Your attorney can explain these terms to you and ensure that they match your expectations and the agreement made with your lender.
5. Resolve Any Issues with the Closing Disclosure
The Closing Disclosure (CD) is a five-page document that provides a detailed summary of the terms of your loan and all the costs associated with your home purchase. The law requires the lender to provide this document to you at least three days before the closing date.
It’s essential that your attorney reviews the Closing Disclosure to ensure that all charges are accurate and align with the Loan Estimate you received earlier in the process. Errors in this document can delay the closing and cause confusion about what you owe.
- Review Costs and Fees: Check for discrepancies in the amounts listed for closing costs, taxes, or fees. An attorney will ensure that there are no hidden charges, and they can resolve any issues before closing.
- Verify Loan Terms: Double-check that the loan terms, such as the interest rate and monthly payment, are correct. Your attorney will cross-check these details to prevent any surprises on closing day.
6. Prepare for the Closing Day
The closing day is the final step in the home-buying process, and it’s essential to ensure everything is in order before you sign the final paperwork. Your attorney will play an integral role in reviewing all of the documents and making sure everything is accurate.
- Document Review: Attorneys will review the closing documents, including the deed, loan documents, and closing statement, ensuring that they are accurate and consistent with previous agreements.
- Escrow and Funds Transfer: Your attorney will ensure that funds are transferred correctly through an escrow account and that all final financial obligations are met.
- Walkthrough Inspection: Before finalizing the sale, you’ll need to do a final walkthrough of the property to ensure it is in the condition agreed upon in the contract. Any discrepancies should be addressed by your attorney before signing.
7. Post-Closing Considerations
Once the closing is complete and the deed is transferred, your attorney’s role continues with some final administrative steps. These include ensuring that the deed is recorded with the appropriate county office, and that you’re properly enrolled in property tax records.
- Record the Deed: The deed must be officially recorded with the county clerk’s office to finalize the transfer of ownership. Your attorney will handle this step to ensure the process is completed correctly.
- Tax Considerations: Finally, your attorney will advise you on any necessary property tax filings and guide you through any remaining legal steps related to ownership or estate planning.
Closing on a home in Buffalo is a complex process that requires the expertise of a skilled attorney to ensure everything runs smoothly. From reviewing the real estate contract to managing post-closing procedures, a lawyer’s guidance can be invaluable. If you’re ready to take the next step toward purchasing your home, Cole, Sorrentino, Hurley, Hewner & Gambino, P.C. is here to assist with every step of the way. Contact us today to make sure your home purchase goes off without a hitch.