Finalizing the Contract and Preparing for Closing in NYC
Once we’ve successfully negotiated any inspection repairs or credits and the attorneys have come to an agreement on any necessary contract changes, the attorney review and inspection period (A/I period) will officially conclude.
What Happens After Attorney Review and Inspection Period?
At this point, once the A/I period is closed, the buyer is required to provide their second and final earnest money deposit. This deposit must be dropped off at my office within 2 business days after the conclusion of the A/I period. This earnest money is typically higher than the initial deposit and represents the buyer’s commitment to move forward with the transaction.
What Happens if the Buyer Backs Out?
After the second earnest money check is deposited, it becomes very difficult for the buyer to back out of the contract. In most cases, if the buyer decides to withdraw from the deal for reasons not related to mortgage approval or other contingencies stated in the contract, the buyer loses their earnest money deposit, and you, the seller, are entitled to keep it. This provides an extra level of assurance that the buyer is serious and committed to the deal.
What’s Next?
Once the final earnest money is received and we’re past the attorney review and inspection period, the primary focus shifts to the buyer’s loan approval. We’ll continue to monitor the progress of the mortgage application, work with the buyer’s lender if necessary, and address any last-minute items.
The closing is now on the horizon! We’ll make sure you’re prepared for the final steps, including the final walkthrough and ensuring all documents are in place for a smooth closing.