How to Do a Remote Closing On a Co-op Apartment

Remote closings on co-op apartments are becoming more commonplace in New York City and nationwide as more building management companies become open to the idea, especially after realizing how much more efficient the process is during the NYC shutdown of 2020 and 2021.

As you’ll see in the sample remote closing instructions from a NYC co-op managing agent, a virtual closing on a co-op apartment is made entirely possible with couriers, FedEx, UPS, notaries and proper preparation.

A Full Service Listing for 1%

Sell your home with a traditional full service listing for just one percent commission.

Sample Co-op Closing Instructions

CLOSING INSTRUCTIONS
Congratulations on your approval!
Please read the following instructions carefully

In order for us to prepare for your closing please allow at least five (5) business days after board approval is formally issued before contacting us, the managing agent, to schedule a closing date.

Due to the circumstances surrounding the Coronvirus pandemic, our team will be handling all coop sale closings remotely. We will be utilizing messenger and or FedEx services to help facilitate this process. Once our closing documents are ready and signed by the board, the managing agent will provide a closing packet that consists of our closing invoice and closing forms for pre-signing.

This will include the signature/notary pages of the proprietary leases, for purchaser’s convenience.

Sample remote closing instructions from a co-op managing agent in NYC. Virtual closings are possible with notaries, couriers & planning.

Seller’s attorneys – we ask that you coordinate with seller’s payoff (if any) and arrange for seller’s collateral to be held with the managing agent. Please feel free to have payoff provide and escrow agreement for review. Please feel free to contact our closing team for further instructions on how to best accommodate your closing needs.

GENERAL INFORMATION:
1. ALL Purchasers’ checks MUST be in the form of BANK, CERTIFIED or ATTORNEY ESCROW CHECKS ONLY.
2. ALL Sellers’ checks MUST be in the form of BANK, CERTIFIED or ATTORNEY ESCROW ONLY.
3. ALL Parties signing documents must bring government issued, non-expired, PHOTO ID.
4. If Closing by Power of Attorney, we must review the Power prior to Closing. An Original counterpart of the Power must be delivered to us at the Closing with a “full force and effect” affidavit.

The Power of Attorney must be the New York Statutory Short Form Eff. 9/12/10 with the following initialed: A, B, C, D, M and N.

The Power must include language that it is specific to the current transaction. A copy of the Transferor/Transferee’s current government issued identification will be required at closing. Please be advised that there is a charge for review of such Power of Attorney. If POA is executed in a foreign country, it MUST be notarized at US Consulate or have an Apostille. A notary public of that country, even if in English, will not be accepted without an Apostille.
5. If Closing as Trust or an Estate, and the Trustee or Executor is unable to be present at Closing, please allow sufficient notice for documents to be pre-signed. In some instances, co-op counsel will be required to review the Estate or Trust documents prior to the closing. In those cases, a legal fee will be imposed and collected at the time of the closing.

SELLER:
6. Please bring the ORIGINAL STOCK CERTIFICATE and PROPRIETARY LEASE to the closing for cancellation. If these documents are currently being held as security on a loan, please arrange for the Lender to be present at the Closing with these documents. If the Originals are lost, the Seller must notify us immediately to order a Lost Stock Certificate and Proprietary Lease Affidavit. Please be advised that there is an additional charge incurred at Closing. Additionally, if the current Shareholder(s) have lost the original stock certificate a co-op title policy with a co-op endorsement naming the co-op corporation as an additional insured will be required at closing.
7. If the current lender has lost the original stock certificate and proprietary lease while in their possession as collateral, we will require an Affidavit of Lost Stock and Proprietary Lease specifically indemnifying the managing agent and the co-op corporation. This affidavit must be sent to us for review prior to closing and a review fee will be incurred at closing.

8. Please provide copies of the Transfer Tax Forms (RPT and TP 584 forms) along with copies of FIRPTA and Seller’s 1099 form.

9. If the sale is by the Estate, the following documents will be required for our review and approval prior to closing (please be advised that there is a charge for such review):
a. Attorney Certified copy of the Will;
b. A Certified copy of the Death Certificate;
c. Original Letters Testamentary/Administration (dated within 6 months of the Closing);
d. Affidavit of Debts and Domicile;
e. Original (raised seal) NYS Release of Lien of Estate Tax (form ET-117) – this form is required, irrespective of the value of the estate.
f. IRS Certificate Discharging Property Subject to Estate Tax (IRS form 792) or IRS letter 1352 stating the Estate is below the filing minimum. If you have not received either IRS form 792 or IRS letter 1352, please provide IRS application 4422 with proof of mailing and an attorney’s undertaking that the IRS form 792 or IRS letter 1352 will be mailed to us within seven (7) business days of receipt.
10. If the sale is a foreclosure or bankruptcy or Seller is trust/LLC, please submit the appropriate authorizations for review by Corporate Counsel prior to Closing. Please be advised that there will be a charge for such review.

A Full Service Listing for 1%

Sell your home with a traditional full service listing for just one percent commission.

PURCHASER:
11. Exact name(s) that are listed on the Contract of Sale will appear on the Closing documents.

PLEASE NOTE: if the apartment is being financed, the name(s) on the closing documents will conform to the names used by the lender, assuming that those names are in compliance with the new requirements of Section 9-503 of the UCC for Individuals.

The name(s) on the closing documents should be reviewed and approved by the bank five (5) business days prior to closing. Any changes made to the closing documents at the time of the closing will be subject to a fee of $275.00. Please feel free to contact us for the information, and/or a copy of the stock and lease. We look forward to having a successful closing!

Save 2% On Your Home Purchase

Our partner brokers are some of the most experienced and reputable in the industry.

Disclosure: Hauseit® and its affiliates do not provide tax, legal, financial or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. No representation, guarantee or warranty of any kind is made regarding the completeness or accuracy of information provided. Hauseit LLC is a Licensed Real Estate Broker, licensed to do business in New York under license number 10991232340. Principal Office: 148 Lafayette Street, New York, NY 10013.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top