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.
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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.
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.
I heard yesterday from a NYC real estate attorney that remote notaries are no longer a thing anymore. That’s unfortunate because I think a lot of people in the field found remote notaries to be quite useful, and made remote closings possible. I then heard a title insurance officer say that there’s actually a bill on the NY Governor’s desk waiting to be signed which will allow remote notaries going forward for closings.
Keep in mind though, one thing that made some people uncomfortable with remote notaries is that you have to take the notary’s word for it that they are physically in the state they are notarizing. Kind of hard to prove if you’re not a tech person.