Role of the Closing Attorney

The closing attorney prepares and reviews all essential closing documents required for the transaction. This includes the deed, mortgage documents, promissory notes, title insurance policies, and various disclosure forms mandated by New York law. The attorney ensures that each document accurately reflects the terms of the purchase agreement and complies with applicable state and federal regulations. Prior to closing, the closing attorney provides copies to all parties for review and addresses any questions or concerns about the documentation.

A closing attorney conducts a thorough examination of the property title to identify any outstanding claims, liens, or defects that could affect ownership transfer. The closing attorney orders a title insurance policy to protect the buyer and lender against future claims to the property. This examination is crucial for ensuring that the buyer receives clear, marketable title. The closing attorney works with title insurance companies to resolve any title issues before the closing date arrives.

Closing attorneys must comply with New York Real Property Law § 213, which mandates attorney involvement in certain residential transactions. This statute protects consumers by ensuring qualified legal professionals oversee the closing process. The closing attorney verifies that all parties have proper authority to execute documents and that the transaction complies with applicable zoning and land use regulations. Additionally, the attorney ensures compliance with New York's Homeowners Protection Act and other consumer protection statutes applicable to the specific transaction.

Federal law imposes additional requirements that closing attorneys must follow, particularly the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). These laws mandate specific disclosures, including the Closing Disclosure form, which must be provided to borrowers at least three business days before closing. A closing attorney ensures that all federal requirements are met and that lenders comply with RESPA's anti-kickback provisions. The attorney also verifies that all settlement charges are properly itemized and disclosed to all parties involved in the transaction.

Before the closing meeting, the closing attorney coordinates with multiple parties including the buyer, seller, real estate agents, lenders, and title companies. The closing attorney obtains the final loan approval from the lender and ensures that all conditions precedent to closing have been satisfied. The attorney prepares a preliminary settlement statement showing all costs and credits for both buyer and seller. The closing attorney also arranges for title insurance and confirms that all necessary funds will be available at closing.

After the closing meeting concludes, the closing attorney has important post-closing responsibilities. The attorney files the deed and mortgage with the county clerk's office in the appropriate New York county where the property is located. The closing attorney also ensures that title insurance policies are issued and delivered to all parties. For transactions involving business closures, a closing attorney may coordinate with other professionals to address matters related to closing a business with debt obligations. The attorney maintains closing files and records for the required retention period and provides final closing statements to all parties.

The closing attorney identifies potential risks and legal issues that could affect the transaction or the client's interests. Common issues include title defects, unpaid property taxes, outstanding liens, and boundary disputes. When problems are identified, the closing attorney works to resolve them before closing occurs. The attorney may negotiate with other parties, obtain title insurance exceptions, or arrange for funds to be held in escrow to address outstanding concerns. In some cases, the closing attorney may recommend that the client not proceed with the transaction if significant unresolved issues exist.

If disputes arise during the closing process, the closing attorney works to resolve them professionally and efficiently. The attorney may mediate between parties, review contracts to clarify ambiguous terms, or seek guidance from the New York State Bar Association regarding professional conduct standards. When issues involve potential fraud or misrepresentation, the closing attorney has an obligation to report such matters appropriately. Additionally, matters involving professional liability or defamation attorney concerns may arise if parties make false statements during the closing process. The closing attorney ensures that all professional standards are maintained throughout the transaction.