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Someone on the Forum who’s about to close on his first home is looking for advice:

The condo is a condo conversion that was gut renovated and essentially considered new construction with an offering plan. We are first-time buyers and I have heard alot of people say that sellers/developers may try to screw you at the closing. Since this is a pretty broad statement, just wondering in what ways I could pontentially get “Screwed” and if anyone has any advice or experiences they would be willing to share.

One person says it’s possible for sellers to adopt a “take it or leave it” stance if the buyer notices anything in the home that’s amiss, while another says that having a real estate lawyer accompany you to the closing should prevent problems. Anyone out there been burned by a closing or heard stories about how other people have gotten gypped?
Getting Screwed at Closing [Forum]
Photo by thorscipher_mason.


What's Your Take? Leave a Comment

  1. I think having a good lawyer is key. She didn’t get us everything we wanted, but there were some strange charges at the closing and she whipped out her calculator and got us a little money back. The bigger shock to me was how much all the taxes and fees added up to. I did rough calculations in my head, but I think we ended up paying nearly 5% of our purchase price on closing with 15% down. It’s even more if you borrow more.

  2. have used a good lawyer for several transactions. cost was pretty low, and was totally worth. do not consider going in alone.

    also, i now live in a condo and the board has been able to get the sponsor to do all sorts of extra work – i mean a lot after closing.

    just go over everything carefully and do a good punch list.

  3. Having been screwed on both sides of the buy/sell of co op transactions, here is my advise to purchasers… especially first time ones.

    1. In co ops especially – do your due diligence and talk to other residents of the building you are moving into.
    2. Pay particular attention to the condition of the building externally and the condition of the internal common areas.
    3. Stop by the laundry room and strike up a conversation with anyone who is there… are the machines all in working order? What do the notices on the BBoard say? Is it clean. (Indication as to the general upkeep of the place)
    4. Ask to be introduced to the Super. The reaction to this request and any subsequent meeting will give you a gut feel about what you are investing in.
    5. Meet your prospective Managing Agent – just pop into their office and see who will be your first contact to get anything done

    Especially if you are buying from the sponsor – get an independent inspection!!! Sponsors sell to you ‘as is’ and encourage you to use their attorney – to save you money. It is cheaper, but you are better of paying for your own attorney to get an HONEST assessment of the reputation of building’s management, the financials for the cooperative, AND an HONEST disclosure of any violations – past or present – from the City building departments. There are a LOT of surprise assessments, maintenance increase costs, etc. that come down the pike AFTER you sign at closing!

    TRUST ME, you will thank me if you do this. I have been mislead by the sponsors sales agent as well as the attorney I used on one transaction. My naivete as I believed them when they forecast schedules for the improvement of infrastructure, disclosed a lack of code violations, and did not disclose pending legal actions which were filed a week after I closed.

    Maybe it’s just bad luck, and I did survive. But I believe in helping you avoid these headaches.

    Also, look under the Management Topic in this Forum. LOTS of good advice there!