Common use of Clear to Close Clause in Contracts

Clear to Close. After the purchaser receives their commitment they will be issued what is called the ‘clear to close’ by the lender. This occurs once the purchaser’s loan officer has cleared all of their commitment conditions and the lender’s attorney has approved the file for funding. Thereafter we will be able to schedule a mutually agreeable closing date with all parties. • Generally speaking, the lender must have the buyer acknowledge the Closing Disclosure 72 business hours (including Saturday) before we can close. Coop Board Approval (if applicable) • If you are selling a coop, the transaction is also generally contingent upon the buyer obtaining ‘board approval’. Most coops. have a board interview; others do not. They will schedule an interview and once approved that will be the final contingency for the transaction. • Our office will prepare a financial closing statement that outlines the entirety of the transaction in a manner that is easily understood. At closing we shall review all documents so as to ensure that you are fully aware of all that transpires at such time. • Please be aware that simply because a closing date has been scheduled, that does not automatically mean you will be giving actual possession of the premises on the day of closing. If you require time to remain in the property after closing, kindly notify us. • Additionally, the purchaser shall have the right to conduct a final walkthrough of the premises prior to closing. This will be scheduled through the parties’ respective agents to ensure the property is in the condition called for in the contract. It is imperative that you contact us immediately if there are any issues at the walkthrough so that we may resolve them prior to the closing so as to avoid any unnecessary delay. • The location of the closing typically will be held at the office of the attorney for the lending institution or coop. managing agent/attorney, as applicable. • The duration of a typical closing should be less than two (2) hours, depending on the lender. • During the actual closing, you will sign New York State/City Transfer Documentation and the Deed while the purchaser signs their loan documentation. • Your ‘closing costs’ will include our legal fee, New York State and City (if applicable) Transfer Tax and any realtor commissions. • Also calculated into your closing costs are real estate taxes. You will be reimbursed on a prorated basis for any real estate taxes have have been prepaid beyond the closing date. • If you are selling a coop./condo., closing fees applicable to each party will be obtained via letter from the Management Company just prior to closing and a ‘common charges’ letter that will be utilized to ‘prorate’ common charges at closing. • You will also receive a credit for any heating or cooking fuel (oil/propane) left in a storage tank. A written final meter reading will be required. This does not apply to homes heated by gas. • You must bring government issued photo identification (i.e. driver’s license or passport) to the closing. Sometimes we are called upon to perform services that go above and beyond a simple closing or services which extend past the closing. These fees are due irrespective of fault. In other words, even if the buyer and/lender are to blame these services will become billable to you as compensation for our time on your behalf. These supplemental services include but are not limited to:

Clear to Close. After the purchaser receives their commitment they will be issued what is called the ‘clear to close’ by the lender. This occurs once the purchaser’s loan officer has cleared all of their commitment conditions and the lender’s attorney has approved the file for funding. Thereafter we will be able to schedule a mutually agreeable closing date with all parties. • Generally speaking, the lender must have the buyer acknowledge the Closing Disclosure 72 business hours (including Saturday) before we can close. Coop Board Approval (if applicable) • If you are selling a coop, the transaction is also generally contingent upon the buyer obtaining ‘board approval’. Most coops. have a board interview; others do not. They will schedule an interview and once approved that will be the final contingency for the transaction. • Our office will prepare a financial closing statement that outlines the entirety of the transaction in a manner that is easily understood. At closing we shall review all documents so as to ensure that you are fully aware of all that transpires at such time. • Please be aware that simply because a closing date has been scheduled, that does not automatically mean you will be giving actual possession of the premises on the day of closing. If you require time to remain in the property after closing, kindly notify us. • Additionally, the purchaser shall have the right to conduct a final walkthrough of the premises prior to closing. This will be scheduled through the parties’ respective agents to ensure the property is in the condition called for in the contract. It is imperative that you contact us immediately if there are any issues at the walkthrough so that we may resolve them prior to the closing so as to avoid any unnecessary delay. • The location of the closing typically will be held at the office of the attorney for the lending institution or coop. managing agent/attorney, as applicable. • The duration of a typical closing should be less than two (2) hours, depending on the lender. • During the actual closing, you will sign New York State/City Transfer Documentation and the Deed while the purchaser signs their loan documentation. • Your ‘closing costs’ will include our legal fee, New York State and City (if applicable) Transfer Tax and any realtor commissions. • Also calculated into your closing costs are real estate taxes. You will be reimbursed on a prorated basis for any real estate taxes have have been prepaid beyond the closing date. • If you are selling a coop./condo., closing fees applicable to each party will be obtained via letter from the Management Company just prior to closing and a ‘common charges’ letter that will be utilized to ‘prorate’ common charges at closing. • You will also receive a credit for any heating or cooking fuel (oil/propane) left in a storage tank. A written final meter reading will be required. This does not apply to homes heated by gas. • You must bring government issued photo identification (i.e. driver’s license or passport) to the closing. • You should also take any utilities in your name the day after closing or possession, whichever is later. Sometimes we are called upon to perform services that go above and beyond a simple closing or services which extend past the closing. These fees are due irrespective of fault. In other words, even if the buyer and/lender are to blame these services will become billable to you as compensation for our time on your behalf. These supplemental services include but are not limited to: