Real Estate – What to Expect in Terms of Timing

New York is home to some of the most expensive real estate in the world.  The state is also known for its bustling work environment and large financial deals.  New York deals often include many parties to the deal, given that the buyer’s real estate attorney does not usually represent the title company and the bank like the practice in neighboring states.  Perhaps for these reasons, New York does not follow the traditional model of establishing a closing date like most other states.  Instead, buyers and sellers usually receive an “on or about” date, which gives each side flexibility in coordinating a mutually agreeable closing date once all of the contractual contingencies are met.  This process can be confusing for first-time buyers in the area.  The actual “closing” date may be much after the date that the offer was accepted.  It may also be a date where the buyer or seller did not have much notice. 

Unfortunately, New York courts have ruled over and over again that any date in most real estate contracts are simply “target” dates and not precise dates.  Instead, the courts have found that each party is entitled to a “reasonable adjournment” of the actual closing date, which has sometimes been held by the court to be up to 30 days from the proposed date. 

One way to potentially avoid this issue is by including a “time is of the essence” clause in the real estate contract.  This signifies that an “on or about” date is not suitable and may punish the party who is not ready, able and willing to execute the contract on the specified closing date.  For example, the buyer may forfeit the down payment.  However, many parties may be unwilling to sign such agreements due to their strict requirements. 

Even if the buyer and seller have agreed to a date and location for closing the deal, the bank may still not be ready.  Documents may be emailed to the bank’s lawyer on the actual closing date for his or her review.  While this uncertainty may be frustrating, the process can be made easier with the use of a real estate lawyer who is accustomed to the New York process. 

If you or somebody that you know is in the process of buying or selling New York residential real estate, contact a New York real estate attorney in your area who can help you navigate the complexities of a real estate transaction in New York.  Sabra Sasson, Esq has more than 17 years of experience representing buyers and sellers of real estate in New York and she will guide you step-by-step to Closing.  Just give her a call now at 646-472-7971 to get started.