Ny Closing

NY Closing: Finance, Closing & Math Understanding the New York closing process is essential because the exam tests both procedural knowledge (who does what, when, and why) and specific math calculations — and errors in either area are among the most common reasons candidates lose points. --- ## Why the NY Closing Process Is Unique New York closings are attorney-controlled, not escrow-controlled as in many other states. This means a licensed attorney — not a title company or escrow officer acting alone — coordinates the transaction. On the exam, expect questions about the sequence of events, which party pays which tax, and how to calculate closing costs. --- ## The NYC Closing Sequence Unlike most states where everything happens simultaneously at one table, New York (especially NYC) follows a distinct multi-step sequence: 1. Contract signing — buyer and seller sign a purchase contract (negotiated by attorneys) 2. Due diligence — title search, inspections, co-op/condo board review 3. Board approval (co-ops especially) — the co-op board must approve the buyer before closing can proceed 4. Closing — all parties (buyers, sellers, their attorneys, lender's attorney, title representative) gather to transfer title and funds > Exam tip: For a co-op, board approval must happen *before* closing. There is no traditional deed transfer in a co-op — the buyer receives stock certificates and a proprietary lease, which are considered personal property. --- ## Key Closing Costs and Who Pays The exam heavily tests which party pays which tax or fee. Here is a clean summary: | Cost | Who Pays | Rate / Amount | |---|---|---| | NYS Transfer Tax | Seller | 0.4% of sale price ($4 per $1,000) | |…