Legal Question in Real Estate Law in New York

Original documents?

Hi, I have a closing for a refinance on my co-op apt this week. The bank is requesting the original stock certificate and the original proprietary lease. Is this ok to do? I feel uneasy about handing over the original documents. A member of the board of directors told me not to do this. Now I am confused. My purpose for taking the loan, is to improve the apt and sell it within the next year. What happens with the documents, if the bank holds them, and I have a buyer? I appreciate your advice.


Asked on 10/09/06, 9:03 pm

2 Answers from Attorneys
Robert R. Groezinger GroezingerLaw P.C.

Re: Original documents?

The lender holds them so you cannot finance the property without paying them off. They are held in escrow. To get them out, lenders usually need at least 10-14 days notice.

Good Luck

RRG

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Answered on 10/09/06, 9:12 pm
Debra Palazzo Law Offices of Debra Palazzo, LLC

Re: Original documents?

You MUST provide the original stock and prop. lease or you will not get funding. This is standard. They hold them as security.

If you have a current loan, you must contact that bank and request that they provide them at the closing. They will send a rep who will turn them over when they receive the pay off check.

When you get a buyer, contact your current lender in advance and tell them they need to retrieve the stock/lease. They may be held in a central "storage" area and it could take up to 4 wks.

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Answered on 10/10/06, 9:13 am


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