Real Estate Topics - Real Estate Topics

Real Estate Topics
Attorney Q&A

What does the attorney do?

The attorney looks over the Offer to Purchase and Contract (and associated documents) to see that everyone’s expectations are accurately represented. The attorney performs a Title Search to make certain that the property will be transferred from Seller to Buyer without any encumbrances such as back taxes, unpaid homeowner dues, etc.

The attorney also confirms that all parties who have an interest in the property agree to the sale. For instance, there could be heirs or an ex-spouse who should be involved. A parent may have a financial involvement. Situations such as this can arise unintentionally, but can have a negative impact on the transaction. It is better to learn this early in the investigation process.

What else should the attorney do?

The staff at the law firm coordinates the many activities which lead to a successful settlement (closing). These include making certain that a termite report has been ordered and determining if a new survey is necessary. There also is a coordination of financial items. Are we paying the taxes for the current year, or were they paid already? Is the Seller paying any closing costs? Are there any outstanding invoices for inspections or repairs.

On the day of settlement, the attorney goes over each document with the Buyer and Seller. The attorney can explain unusual terms, and the attorney is responsible for getting all necessary signatures and notarizations. Finally, the attorney pays off the previous loans, pays invoices, and records the deed. The loan package is then sent to the Lender.

Can any attorney close a residential real estate transaction?

Probably, but some do not make this a part of their everyday legal practice. Like doctors, many attorneys specialize in commercial law, criminal law, etc. If you have a friend, neighbor, or fellow church member who is a lawyer, you certainly can offer them the opportunity to represent you. However, be prepared for them to decline or to refer you to someone who specializes in real estate transactions.

How do I choose an attorney for a closing?

Talk to friends who recently closed on a home. If using an agent, ask him/her to furnish several names of attorneys regularly used. Look for attorneys who have a staff to assist them. Otherwise, participants in your transaction will have to “dance” around the attorney’s court schedule and appointments in order to answer a simple question or to order a survey.

NOTE: If you are buying a new home, find out if the Builder requires you to use his attorney in order to get credit for closing costs.

When do I select an attorney?

Although most closings occur thirty days (or longer) after writing a contract, many elements in the transaction are time-sensitive. The legal portion cannot wait until “the last minute”. It is a steady stream of events, the timing of which constitutes a “critical path” in many cases. Make certain that the attorney is brought into the loop early in the transaction.

If you are buying or selling a property without the benefit of a real estate agent, involve an attorney in the contract-writing phase. Do not rely solely on “do it yourself” instruction kits.

Always remember: It is much easier to fix things on the front end than at the closing table.

Paul Folmsbee of RE/MAX Integrity would be honored to assist you with your next real estate transaction. Contact him for a no-obligation consultation.

Special thanks to Robert Brady, Attorney-at-Law, and to Larry and Heather Smithmier for allowing us to photograph them during an actual real estate closing.