An attorney provides invaluable protections to both buyers and sellers during real estate transactions. Real estate attorneys are adept at negotiating the Contract of Sale and managing title issues that may arise during this process.
Select an experienced real estate attorney when closing, so research their online reviews and testimonials for an idea of their depth of experience.
Negotiation
Your purchase contract for your home will likely include many details, clauses and concessions. Working with a lawyer to understand your rights and make informed decisions during negotiations can help.
Your attorney will also ensure that the contract is clear and enforceable, identifying any issues like whether a provision is illegal or unfair that may arise during review of draft contracts.
Your attorney can also assist in assessing any bonuses or incentives provided by sellers and negotiate accordingly. They may also review a comparative market analysis, which provides valuable details about recent sales of similar homes in the area – especially important if the property in question is in an exclusive, highly desirable neighborhood with limited inventory – giving you more confidence when making offers to the seller.
Contract of Sale
Contract of Sale documents serve to outline the terms of any real estate purchase agreement, from price, payment terms, closing date and contingencies such as financing arrangements and inspection requirements to closing date and price adjustments. It’s crucial that these contingencies are accurately detailed to protect both parties involved and avoid future disputes.
Real estate attorneys specialize in creating contracts and adding any necessary clauses that ensure a smooth transaction, such as accommodating tenants already living in the home and recognizing and providing for them appropriately.
Attorneys representing both buyers and sellers will then review a title report from the Purchaser’s title company to assess what steps must be taken by both sides in order to transfer clean title at closing, which could include ordering payoff statements from lenders or addressing any liens and defects on title.
Preparation for Closing
Closing is the final stage of purchasing real estate. At this point, all parties involved, such as attorneys for each side of the transaction, title companies, lenders and real estate agents of buyers and sellers must all collaborate closely on this step of the purchase.
At closing, you sign several documents related to the property sale: closing disclosure document, mortgage document securing your new home as collateral for loan, promissory note promising repayment of lender, deed of transfer of legal ownership from seller to buyer and deed transferring legal ownership from seller to buyer. Depending on the situation, additional items such as outstanding escrow items which weren’t rolled into loan may need to be provided as well as proof of homeowners insurance.
If unforeseen issues arise that could delay closing, your attorney can help negotiate solutions to find resolution before the scheduled closing date. For instance, if a seller left debris that must be cleared away before you move in, suspension of closing until all debris has been cleared away may be an option.
Representation at Closing
Closing can be a complex and time-consuming process that involves several legal documents. Buyers may find out that items they thought they had secured have been removed, there are errors on the closing statement (such as an incorrect charge for service contracts) or there are serious problems such as roof leakage, mold growth or an elevator needing replacing after closing has taken place.
An attorney representing buyers will be able to navigate any potential complications. They’ll also review and advise them on all final documents like deed, mortgage, transfer tax returns and closing statements.
Closing agents are typically selected by sellers and do not represent buyers’ interests. A good buyer’s lawyer will be able to ensure that both parties involved in negotiations or document preparation act fairly, which may involve negotiations and/or drafting new documents. At this stage, Buyers typically make an earnest money deposit which will remain in escrow until closing takes place.