Any real estate attorney practicing in New York will tell you anecdotally that it has become more difficult and takes more time to close deals now that we are post-bust, middle of latest boom/bubble or however you want to characterize the recently past and present market. “There are no easy deals anymore” is the attorneys and brokers’ lament.
In a piece in this Sunday’s NY Times Real Estate section, there was a mention that closings in New York are not typically 90 days out from the contract date. A lot of “stuff” has to happen between the date the contract is signed and all sides are ready to close, so 90 days might not seem like an unreasonable amount of time.
There are dangers, however. In every transaction – whether real estate or other commercial transaction – the longer the wait before closing the greater the risks that facts and circumstances will change and jeopardize the closing. When negotiating and drafting the contract, you need to balance these risks against the “stuff” that needs to be done; and after the contract is signed, your attorney needs to stay involved in the process and make sure the “stuff” gets done as expeditiously as possible.
More on the “stuff” that needs to be done will be discussed in later posts.