In the days leading up to the implementation of TRID, there was palpable trepidation among many real estate professions. The million dollar question was how TRID would impact the timing of residential real estate closings given the new forms and notice requirements.
In New York, where most residential real estate closing dates are “on or about” and very few contracts contain a “time is of the essence” clause, real estate professionals are accustomed to counseling clients that the closing is “flexible” and may be postponed by either the seller or the buyer.
Some attorneys (myself included) prefer to “pre-close” deals to the greatest extent practicable such that by the time the client is sitting at the closing table, all substantive issues have been resolved and the only tasks remaining are to sign and notarize documents and deliver funds so that the deal can be consummated. For these “proactive” attorneys, TRID was largely form over substance because all of the estimated closing calculations and adjustments were prepared relatively early in the transaction and only fine tuning was left to the end. For example, some attorneys order title searches immediately so that the information can be transmitted to the lender well before closing. Most real estate brokers are now including their MLS and license numbers on their Deal Sheets and invoices so that this information is readily available to the lenders. These seemingly small changes help to give the lender more lead time to prepare the Closing Disclosure.
The replacement of the HUD-1 form with the Closing Disclosure may have caused some confusion in the beginning, but as time passes borrowers and their attorneys are becoming accustomed to the new format.
In sum, while TRID has required lenders to produce new disclosure forms and deliver the Closing Disclosure at least three days before closing, the practical impact of TRID on purchasers and their attorneys has been relatively small.
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The Law Offices of Keith R. Betensky, Esq.
The Empire Building
26 Village Green, Suite 4
P.O. Box 22
Bedford, New York 10506-0022