whether the property is suited for the purpose for which the buyer desires the property. If the buyer is planning to erect a building or maintain a gas station, the zoning and land requirements will differ. What steps, such as obtaining pre-approval for a mortgage, should a buyer undertake to ensure that closing is completed as quickly and smoothly as possible? I have been practicing real estate transaction law for almost 24 years now, and I can tell you with 100% certainty that the two matters that hold up most real estate closings are the banks and the condominium associations. It is crucial that the buyer timely apply with the lender right out of the gate. Same with applying with the association. Associations tend to drag their feet, and often require fingerprinting and credit checks. By law, they have a certain number of days to complete their applications and approvals and they do wait until the last minute. The mortgage application is where having a good real estate lawyer in your corner will protect the buyer. Banks are also notorious for dragging their feet, but unfortunately do not really care about contract deadlines. They rely on the buyer or the buyer’s agent to advise them if the deadline is looming and what is needed. I often have buyers that come to me to recover their deposits after the bank denied their ‘pre-approved’ mortgage once the financing contingency expired. If the buyer had a real estate lawyer, they would have kept the bank apprised of what was needed to make sure it was timely and the deposit protected. Staying on top of the lender and what requirements are needed for the loan to be processed and approved are crucial. What are the pitfalls to watch out for during the closing period? As I mentioned, the usual pitfalls come from the lenders, who generally seem to be oblivious to contract deadlines – particularly the deadline to obtain financing or cancel the deal. Lenders often place a buyer’s deposit at risk. In the role of the buyer’s real estate attorney, myself and my team act as a watchdog to make sure that not only the mortgage is being processed smoothly, but all closing and contingency deadlines are met. Clearing title issues are also matters that cause closings to fail. You may have certain survey encumbrances that the buyer or lender cannot live with, or perhaps a stale old mortgage on the side of the seller that was paid off in full decades ago, without a recorded Satisfaction of Mortgage. Tracking down heirs or a private lender that no longer exists may prove THOUGHT LEADER 51 Not all title companies are created equal.
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