Robert Kaplan, P.C., attorney at law with his law firm located at 70-20 Austin Street, Suite 100, Forest Hills, N.Y. recently responded to an article on this blog dealing with lock-in rates.  The following is his professional view on this important issue.

One aspect to consider is the expiration date of the lock in period.  Most banks will give a 30 or 45 day lock in period while a few will give 60 days or more.  Purchasers should take into account the date of actual closing; not the "on or about" date that appears on the contract.  First of all, the "on or about" date may be legally postponed by seller for several weeks.  So even though the purchaser would like to close to preserve the rate, seller is not required to close just because the purchaser's rate expires.

Furthermore, in co-op transactions, purchasers must realize that board approval may delay a closing date by more than a month.  Some boards, especially around a holiday season, can take 2 months.  If the pruchaser's rate is expiring shortly before the closing date, some cooperative sellers may agree to close title preserving the rate but remaining in occupancy for a few days to a week afterwards.

In such cases, it may be prudent for purchasers to waive the customary per diem interest adjustments they would be ordinarily entitled to in consideration of seller's courtesy and the benefit of the savings received compared to the cost of a rate extension fee.

For those in need of quality, legal advice, Mr. Kaplan can be reached by calling his law firm at (718) 268-4200.