Your visiting this site has probably been prompted by the fact that our office has been asked to handle the closing of the sale of your property in connection with a mortgage being granted to your buyer. There are some matters that we will require in order to expedite the transaction and prevent delays. They are listed below.

In order to insure a smooth closing, we would like to review the following information, and we would appreciate your completing the fill-in form on this site.

1. MORTGAGES: If your property is presently mortgaged, the mortgage(s) will be paid off at the time of closing using proceeds from the sale, if any. Please provide information regarding this mortgagee, as well as equity mortgagees, in the fill-in form on this site in order that we may contact the mortgagee(s) and make the necessary arrangements for payment. This is very important and requires your immediate attention. After your mortgages have been paid in full, the banks will send us discharges which we will record at the Town Clerk's Office.

In the event there is a non-institutional mortgage (i.e. one given to a private individual, trust or corporation as opposed to a bank or loan company), we will require that the payoff amount be furnished to us before the closing and a discharge be delivered at or before the closing. UNFORTUNATELY, THERE CAN BE NO EXCEPTION IN THIS REGARD. If you are uncertain about whether an outstanding loan is held by a private lender, please contact our office. The obligation to furnish a discharge at closing applies also to outstanding attachments or other liens, if any.

2. DEED: The preparation of a new deed to convey the premises to the buyer is the seller's attorney's responsibility. The buyer's attorney will normally send the title information to the seller's attorney along with the buyer's names and how they will be taking title, so that the seller's attorney can prepare the deed.

3. WATER, SEWER, GAS, ELECTRICITY, CABLE, OIL & PHONE: About 5 to 7 business days prior to the closing, you should contact, as applicable, the utility companies, other than your water company, to notify them that you will be closing on the sale of your property and that you wish to have your name(s) removed from the accounts. The buyers will do the same to add their names to the accounts. A final bill will then be sent to you at your new address. We will contact the water company, if applicable. If you are selling a condominium, often, but not always, water and sewer is included in the condominium monthly fee. A few smaller condominiums also include heat in the condominium fee. The seller may choose to fill the oil tank and bring the final bill to the closing or to have the tank measured by their oil company, or to read the gauge on the tank. If you choose to adjust for the oil by using the gauge, please tell the buyers so they can read the gauge at the time of the walk through so there is agreement on the amount of oil in the tank. In any event, the last oil bill should be brought to closing so the parties know the price per gallon for adjustment purposes.

4. EXPENSES: The seller is responsible for the payment of a Connecticut conveyance tax of $5.00/thousand of the sale price. For example, if the sale price is $100,000.00, the tax is $500.00 ($100,000.00 x .005). If the sale price exceeds $800,000.00, the tax is $10.00/thousand for the amount that exceeds $800,000.00. For example, if the sale price is $1,000,000.00, the tax is $6,000.00 ($800,000.00 x .005 = $4,000.00 + $200,000.00 x .01 = $2,000.00). The seller also pays a conveyance tax to the town in which the property is located. The amount is $1.10/thousand of the sale price. For example, if the sale price is $100,000.00, the tax is $121.00 ($100,000.00 x .0011). The seller is also responsible for the payment of recording fees to the town clerk for mortgage and lien releases, probate documents, where necessary, powers of attorney, if applicable, etc. 

5. POWER OF ATTORNEY: If a power of attorney will be involved, please send us a copy ahead of time so we may review it. If you need a power of attorney, we will prepare it for you and ask that you execute it before the closing so that we may review it to ensure its accuracy. WE MUST HAVE THE ORIGINAL FOR CLOSING IF YOU ARE NOT SIGNING THE DEED AND ARE USING THE POWER OF ATTORNEY INSTEAD.

6. CONDOMINIUM UNITS: If the transaction involves a condominium unit, you are required to provide a certificate that shows any unpaid common expenses or assessments that have been assessed to the unit owner. The seller's attorney will take care of getting that information from the management company for the condominium association or from the association itself if there is no independent management company.

7. SALE PROCEEDS: At the time of closing, you will receive your net proceeds and the deposit check from the realtor, if applicable. The net proceeds check will be the sale price, as adjusted by the costs or credits between you and the buyer for oil, if applicable, water, taxes, closing cost credits, if applicable, less payments to the real estate brokers, as applicable, attorney's fees, recording costs, conveyance taxes and other fees that may apply to your closing.

8. FEDERAL TAX LAWS: In 1997 the tax laws were revised to give a capital gains exemption on the sale of real estate to qualifying individuals. If all 4 of the following items apply to your situation, then you are exempt from capital gains on the sale of the home. If not, there may or may not be capital gains due and you should contact an accountant to make that determination. Also, if you do not qualify, the attorney for the bank will need to provide you with a substitute 1099-S form and also send a copy to the IRS. Please notify us before the closing if you qualify or not. The items are as follows:

1. You owned and used the residence as your principal residence at least 2 out of the last 5 years prior to the date of closing. 
2. You have not sold or exchanged another principal residence at least 2 years prior to the date of closing. 
3. You did not use the residence for business or rental purposes after May 6, 1997. 
4. The sale price is for $250,000.00 or less, or You are married and the sale price is $500,000.00 or less and the gain on the sale is $250,000.00 or less, or You are married and the sale price is $500,000.00 or less and (a) You intend to file a joint return for the year of the sale, (b) your spouse also used the residence as his or her primary residence at least 2 out of the last 5 years prior to the date of closing, and (c) Your spouse also has not sold or exchanged another principal residence in at least 2 years prior to the closing date.

9. CLOSING. You should also be aware that most lenders require 72 hours notice in advance of the day of closing to prepare the loan papers and to obtain the funds. When applicable, there is no exception to this requirement, and we ask that you coordinate scheduling of the closing not only with our office but with the buyers and brokers as well.

10. CORPORATIONS AND LLC'S: If you hold title to the property in a corporate name you should immediately take steps to secure the following documents:

1) a corporate or LLC resolution authorizing the sale of the property; and
2) a designation of the proper party authorized to execute the deed and other closing documents necessary to complete the closing.

11. TRUSTS: If the property is held in the name of a trust, a copy of the trust should be provided to the seller's attorney so that he or she can provide pertinent provisions to the buyer's attorney and to enable the seller's attorney to prepare a fiduciary's deed, rather than a warranty deed.

12. ESTATES: If the property is being sold by an estate, the executor or administrator will sign a fiduciary's deed. It is important to note that if the property is being sold by an administrator (where there is no will), or by an executor who does not have the power to sell pursuant to the will, then it is required that the probate court approve the sale. THERE IS NO EXCEPTION FOR THIS. Often, a hearing to approve the sale at the probate court requires 3 to 5 weeks notice, and this cannot be requested until the executor or administrator is appointed. You should contact the sellers attorney as soon as you can to resolve any issue in this area.

13. THE CONDITION IN WHICH YOU MUST LEAVE THE PROPERTY FOR THE BUYER PURSUANT TO YOUR CONTRACT: Your contract requires that you leave the property in broom clean condition (unless you have agreed to do more than that with the buyer, such as having the carpeting professionally cleaned). "Broom clean" is a general term that means the house or condominium should be completely emptied of all personal property and that the rugs should be vacuumed and the floors should be swept. Also, the refrigerator should be emptied and cleaned, the stove should be relatively clean and the bathrooms should be cleaned. Unless the contract states that some items shall remain (such as window treatments) or the buyer agrees that you may leave specific items (such as paints cans), you must remove everything, i.e., paint cans, lumber, firewood, bricks, cinder blocks, tile, stone, old stoves and refrigerators, etc. Unless agreed to by the buyer prior to the closing, there can be no exception to this. Many times at the closing, the seller has to agree to let money be held in escrow, to be released upon all items being removed from the property, or to pay the buyer to remove the items. More importantly, if this type of problem arises at the closing, both parties waste time trying to resolve these issues and the discussions often lead to bad feelings on both sides. The buyer has the right to insist on "broom clean" condition, and so for everyone's benefit, including the seller's, we ask that the property be left in the proper condition. If this may be a problem, we ask that you inform our office prior to the closing so that we can try to resolve the matter prior to the closing day. It will make for a much more pleasant closing for all concerned. 

14. REPAIRS AND SERVICING DONE AT THE BUYER'S REQUEST: In many cases, the buyer asks the seller to perform repairs or have items serviced at the property after the buyer's home inspection is completed. In the event the seller agrees to have work performed at the property, the buyer is entitled to receive copies of paid receipts for the work, if not done by the seller himself or herself. More importantly, if the work is performed by a third party within 90 days of the closing, the buyer's attorney requires paid receipts for the work, to ensure that a lien cannot be placed on the property in the land records. Please note that an invoice in not sufficient. The seller must provide a paid receipt for the work, stating what work was performed, the cost of the work, that the bill was paid, and who performed the work. If you are unable to pay the bill prior to closing, the lender's attorney may write a check at closing directly to the third party, provided a detailed bill is presented at closing. Please let us know ahead of time if you wish to do this. Failure to provide paid receipts or to pay the applicable bills at closing may result in the seller's having to let money be held in escrow until satisfactory receipts are presented. 

15. TENANTS: In the event that you are selling a multiunit residence, you must have the tenants out of the property prior to closing, unless the buyer has specifically agreed to let one or more tenants stay in the property.