Legal Question in Real Estate Law in New York

Re: mtge

You need to notify the bank well in advance of the closing AND REQUEST A PAYOFF LETTER. Some banks (Chase is notorious for this) will take 30 days to prepare and deliver the payoff letter. No payoff letter, no closing. Be aware that the bank will charge a fee for preparing the satisfaction of mortgage, which will be stated in the payoff letter and which you will have to pay; this is in addition to the prepayment penalty (if any); and the title company (and/or title closer) will collect a pickup fee. Last time I did a residential closing, the title company charged $150.00 for the pickup, and, as a courtesy, I gave the title closer a gratuity of $150.00 as well. Since it's apparent that you do not have an attorney, you should enlist the assistance of your broker (if you have one) or the buyer's attorney in establishing what other things you need to bring to the closing. Speak to the title company about this as well. Photo id is essential. Tax bills, utility bills (if supplied by a public authority, since in that case they are a lien on the property) and, if you use fuel oil, have the tank read just before closing and bring the reading to the closing (you are entitled to be paid for the oil in the tank). And for pity's sake, make sure you have seen the title report and are aware of any other requirements for closing. Any liens on the property will have to be taken care of, and you need to calculate apportionments for taxes. For example, if the real estate taxes are paid through June 30 and you close on May 31, you're entitled to be paid for one month's taxes.

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Re: mtge

Typically, if there is an outstanding mortgage on a property, the property holder (the "mortgagor", the bank is the "mortgagee") has to let the bank know if there is to be sale of the property. And typically, at closing, either the previous mortgage will be paid off (i.e "satisfied") or assumed by the buyer.

Re: mtge

Yes. The title company will not approve title unless the mortgage is satisfied.