Overall, it's up to the parties to make a decision. Since both the seller and the buyer benefit from the services of this attorney, it is in their best interest to choose the one who will work best for both parties.
Several states have laws on the books mandating the physical presence of an attorney or other types of involvement at real estate closings, including: Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New ...
the lenderThe attorney who directs the real estate closing process in Georgia represents the lender, not the buyer or seller. However, although the closing attorney represents the lender in the transaction, he or she has a responsibility to all parties involved to complete the closing in an efficient manner.
In some areas, closings take place with title companies, but most in Alabama are handled by attorneys. If the real estate agent does not select the attorney the lender will suggest one. Most homebuyers rely on their real estate agent to select an attorney, but I recommend asking your lender for a referral.
the sellerWhen a property is sold in Rhode Island for over $100 a transfer tax must be paid, usually by the seller (RIGL 44-25-1). Proof of payment is stamped on the deed so the recording clerk can see it was paid.
In Rhode Island it's required for a real estate attorney to be part of every home sale. While your agent can make recommendations, remember you get to make the final decision.
Georgia law requires a licensed attorney to close all real estate transactions. In other states, the title company handles the closing and matters pertaining to escrow.
In Georgia, a licensed Georgia attorney must close all real estate transactions, unlike in many states in which title companies handle escrow and closing matters. The contract is sent to the closing attorney and to the buyer's lender.
Georgia, unlike some states, DOES mandate that an attorney be used for the process of selling a home. Specifically, an attorney is required for all closing matters. However, having a lawyer in your corner is also never a bad idea for contract review or to assist in negotiations.
In Alabama, non-attorneys can conduct closings. However, there are restrictions in both the Alabama code and case law on what activities a non-attorney can perform related to the closing.
Alabama is one of the few states that requires a licensed real estate attorney to draft and prepare all legal documents involved in a real estate transaction (Ala. Code § 34-3-6(c)).
Alabama is one of the few states that requires those who sell their homes as for sale by owner (FSBO) to hire a real estate attorney to guide them through the process.
A closing attorney's primary function is to represent the lender and to oversee the transaction, ensuring that all documents are filled out and filed properly.
Anyone whose name appears on the loan or the title to the property must be present at closing or be represented by a power of attorney approved by us and your lender. Also, if a spouse or other person is to be on the deed (even if they are not on the loan) they must attend closing.
No, a seller does not have to be present at closing. Every state allows power of attorney to handle a home closing.
At the end of the year, the buyer will properly pay the full year's property taxes. For example, if the yearly taxes on your home are $4,000, and closing on your sale occurs in the beginning of April, then you will credit the buyer the taxes for the three months of the year before they purchased the home ($1,000).
Bryan De Bruin is a Real Estate and Business Law attorney serving Greenville, SC and the surrounding upstate. Bryan is proud to guide clients through the legal process and makes sure that every client understands each phase of their case, so that they are prepared for what happens next.
Nebraska: Real estate attorneys are not essential for closing but may be advised by your real estate agent. Nevada: Real estate attorneys are not essential for closing but may be advised by your real estate agent. New Hampshire: New Hampshire requires a licensed attorney to conduct real estate closings.
Before transferring the property title, attorneys evaluate public records on a property’s history, to uncover any potential liens or other issues that might negatively impact the title for the new owner.
Provide peace of mind to all parties. Thanks to their experience and education, real estate attorneys can provide some peace of mind for all parties involved. They help protect clients from legal disputes and streamline the closing process for a smooth sale.
In many ways, real estate attorneys serve as “fact-checkers.” Agents can often defer to an attorney’s better judgment, concerning everything from initial contracts to the breakdown of final closing costs.
However, some attorneys charge a flat fee for their assistance in real estate transactions, and these costs can range from $950 to $5,000. The buyer usually foots the bill for this expense, but they may negotiate for the seller to pay the fees in some instances.
According to Cowart, the attorney’s primary job is to review, and sometimes draft, the title and contracts and to facilitate the closing process; in states where an attorney’s participation is not mandated, title companies typically conduct these steps.
There are a number of laws responsible for regulating real estate transactions, and they vary nationwide. In fact, some states require a licensed real estate attorney conduct the closing of your home sale. Even if you don’t need an attorney, there are a number of complex scenarios in which agents often recommend hiring an attorney.
Hire a closing attorney: Legal documents relating to the closing process can be quite complicated, so many buyers will opt to hire a real estate closing attorney to gain professional expertise and advocacy in case there are any problems in the paperwork.
A real estate closing is the final step in the real estate buying and selling process. Once an offer on a property is officially accepted by the seller, a purchase agreement is made, and a closing date is set. Upon closing, the property ownership is formally transferred from the seller to the buyer, after which the buyer is free to start their move-in or renovation process. Your agent, lender, and title agency will work together to complete their end of the deal. This means that their timeline might vary from the buyer and seller’s agreed-upon closing date. Therefore, you should be prepared for any issues that might push your closing date back.
Enter escrow: Because there are so many steps involved in completing a successful real estate transaction, a neutral third party will protect all the funding and documents involved in the closing process. Escrow helps to protect both the buyer and seller from being ripped off during this time.
Escrow helps to protect both the buyer and seller from being ripped off during this time. Perform a title search and purchase insurance: By performing a title search and purchasing a title insurance policy helps buyers make sure that the transfer of ownership will go smoothly at closing.
Although the real estate closing timeline varies case by case, it generally takes a few weeks to close on a house, barring any delays. If a buyer has already been pre-approved for a mortgage loan, the lender can generally process the paperwork, as well as schedule a home appraisal, in just one to two weeks.
Sign all paperwork: The final step arrives on the actual date of closing. The buyer and seller’s parties will meet in-person to make final payments, sign legal documents, and officially transfer ownership. Be sure to review the “What Happens On The Day Of Closing” section below to know what to expect at this meeting.
As mentioned above, there are a few issues that could cause delays in the closing process. These are typically associated with financing or legal matters relating to the property. In some cases, they could even be related to the property’s condition, such as hidden structural issues with the home. While these delays can be troublesome for anyone trying to close on a property, most can be solved (even if that means restarting negotiations over the property’s purchase). Also, some problems could arise with your home appraisal, home inspection, or home loan. Your home could be praised for less than you were expecting, or you could be approved for a loan less than you were aiming for. Sometimes your home inspection could bring more issues to light than what you expected, and this could delay the closing process. However, to help make sure your real estate closing timeline stays on track, read through the following common delays:
There are five primary functions handled by the closing attorney during a real estate transaction: Title examination: The buyer and lender will both want a clear title for the property. Without clear title, the sale may become much more complicated.
While the closing attorney is typically located in or near the county where the property sits , many actual real estate closings today are handled on one or more sides using overnight mail with payments via ACH or wire.
The title examination is for the purchaser and the lender to evaluate title to the real estate. The purchaser will need to know whether there are certain restrictions of use, easements, encroachments or whether the title is marketable and clear for the seller to transfer the property to the purchaser. The closing attorney will identify any existing ...
The closing attorney is available to explain documents such as a deed, a note, a deed of trust, a settlement statement, disbursement at the end of the transaction and loan documentation required by the lender.
Title insurance is optional for the purchaser in a real estate closing if he or she does not have to get financing through the bank or mortgage broker; is a requirement for most all lenders at the time of purchase or refinance of real estate.
A closing attorney is responsible for organizing and overseeing the closing of a real estate transaction, as well as preparing the necessary paperwork and contracts. In some states, it’s mandatory for a closing attorney to be present during a closing.
A typical closing attorney will charge, whether it is done per hour or a fixed rate, between $500 and $1,500 total to conduct a home closing.
Provide your attorney with all documents related to your real estate transaction. This step will allow your attorney to become familiar with your legal matter and ask any necessary questions before a real estate closing occurs. This process also allows the attorney to identify any problems or issues that he or she sees with your real estate transaction before reaching the point of closing.
A real estate closing is often a nerve-wracking experience for both the buyer and seller. Typically, a large amount of money changes hands during closing and both parties to the transaction have done a lot of work leading up to the closing date. Plus, real estate contracts tend to be full of legal jargon that can be difficult for ...
At this point, you will either need to pay the attorney the agreed-upon price, as many real estate transactions are priced at a flat fee, or pay the attorney a retainer, which is a set amount of money necessary to hire the attorney. As he or she does work on your real estate transaction, the attorney will deduct his or her hourly fees from your retainer.
Ask for a recommendation from friends, family members, or colleagues. Almost everyone who buys or sells a house will hire a real estate attorney to represent him or her at some point during the transaction. Ask people you know that have bought or sold real estate whether they would recommend the attorney that they hired. You can even ask your real estate agent for a recommendation. Personal recommendations are a good tool to use when selecting an attorney, because they give you an opportunity to understand how the attorney handled your friend or family member’s particular case.
Ensure that each real estate attorney is certified to practice law and is in good standing. Check with your state bar association for resources to determine which attorneys are in good standing, as opposed to those whose law licenses have been suspended or are subject to disciplinary proceedings. Each state typically has a searchable database of all lawyers in the state from which you can determine their status.
By reviewing other individuals’ experiences with a particular attorney , you can judge whether an attorney might be the right fit for you. For an example of a popular lawyer review site, click here.
It is your lawyer’s job to give you legal advice about your legal matter. That is the reason that you are paying him or her to represent you in a real estate closing. As a result, you should cooperate with your lawyer and take his or her advice for the best possible outcome in your case.