Closing Delays

exactly the same thing as when there is a mortgage involved --- just a matter of where the buyer's check or checks is coming from.

closings are not scheduled until the necessary documents are produced. i would assume that if relevant documents are lost there is a process to provide a replacement.

OMG- i had the same exact problem. buyer was all cash and the bank could not find the stock. i went bananas when the legal assistant called me. i told him to get the lawyer to get on the phone and yell and scream at the bank. i work in banking so sorry it's the only way to get someone to pay attention.
He did, it took a few days to get a temp or replacement cert and $400.
The sellers lawyer needs to get on it and be a d-ck. As a seller i am sure they want this to close smoothly.

very true, the fact that it is cash vs mortgage has no effect

How can banks possibly "misplace" documents which serve as the collateral to loans? No wonder the banking system needed a bailout!

Tell them to shell out the dough and get a replacement certificate NOW.

The fact that in 2009 a piece of paper even exists blew me away... and the fact it could have held up the closing was so ridiculous kept me from totally losing it. you would be amazed how much gets lost, that is why replacements were invented!!!!!! I hope they buyers side is smart enough not to have the bank try to find it. IT"S GONE!!!

RE2009: agree "IT'S GONE!!!" -- the replacement should be pretty straight forward -- I guess the seller has to get the bank to pay attention long enough to actually get the replacement together!

What is seller's attorney doing?

If the bank can't find the stock certificate and proprietary lease, that's something that a competent lawyer will know AHEAD of closing.

An "affadavit of lost documents" (or something very much like that, I'm not a lawyer) is filed, the bank creates a new replacement piece of paper, and brings it to the closing.

ali r.
{downtown broker}

I think the bank is telling the seller's lawyer they have a 4 week period in which they can "search" for the "misplaced" documents and since the request was made 2 weeks ago, the bank is claiming that they still have two more weeks to continue their "search" before issuing replacement pieces of paper.

The whole thing is laughable if it weren't for the fact that it delays the closing unnecessarily.

Anonyme- i heard the same bologna. There should be no delay!!!!
If it is a small delay and you can live with it then try not to stress. Your seller may not know how screwy banks can be... is there a way your lawyer can call there lawyer and say this is BS just get the replacement for $400, you get that back from the bank. (although i am still trying 6 months later!).
Let me know if you have any additional questions as i just went through this!!

I've instructed my lawyer to demand that the closing take place within the next 7 days. I truly appreciate all the advice. It's amazing how difficult it can be to hand people a whack of cash!

if it makes you feel better i was very appreciative!!! but i know how you feel, not to stray off topic but i often feel that way when shopping in higher end stores these days.... it blows my mind!
good luck and enjoy your new place! let us know how it goes..
oh- it takes about 2-3 days to get the replacement so you are good!

My attorney told the seller's attorney that there should be no other delays and that the bank should simply get the replacement and proceed to closing. We'll see how quickly they can get all this done next week.

RE2009: when you say "it takes about 2-3 days to get the replacement", my attorney says that the steps are:
1) get the affidavit from the management company
2) get the seller's bank to agree to sign the form
3) find an "authorized" individual at the seller's bank to sign the form

Is that what you mean or were there any other steps involved?

Thanks!

By the way, the seller has agreed to pay the $500 to have the bank sign the affidavit (I presume the seller will get it back somehow from the bank as it was their fault).

to be honest i did not get involved with the details... i told my lawyer to handle it and a few days later we had the replacement cert. it was $400, i did not even know that until the close. the $$ did not matter as i was DYING to close!! i am still trying to get the $400 back.
i am certain you will close on time!

Thanks RE2009 -- fingers crossed. I'll let you know how I make out. I really appreciate your input on this.

Good luck and happy to provide some insight!!! Trust me the closing/co-op thing needs a HUGE process improvement!!! But i think it's like pain, your mind blocks it :-)))). You're in the home stretch now!
Enjoy your new place!!!