what does the sellers real estate attorney do at closing

What Does a real estate closing lawyer Do?

• Documentation for closing The seller’s Attorney handles drafting the first contract of sale for a home. ...
• Conduct a title search A real estate closing lawyer conducts a title search to discover liens, easements, and other concerns along the chain of title. ...
• Get title insurance ...
• Gather information ...
• Review closing documents ...
• Distribute funds ...

Full Answer

What is a real estate attorney?

Why do you need an attorney for real estate?

How much does a real estate attorney cost?

What is an escrow manager?

What to do if you have liens on your home?

What to do if you inherited a home?

What to do when selling a house with someone other than your spouse?

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What is the lender's attorney's responsibility at the closing?

The closing attorney's primary function is to take care of all arrangements necessary to close the lender's mortgage transaction. The closing attorney coordinates all of the efforts outside of the loan approval process that allows the closing to take place.

Who chooses the closing attorney in Alabama?

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.

What happens as a seller on the day of closing?

Finalizing the sale on the closing date The closing date is when the sale transaction is officially completed. You will sign a lot of paperwork, including signing the deed to the property over to the buyer. Don't be afraid to ask your attorney or escrow agent about any documents you don't understand.

Who chooses the closing attorney in NC?

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.

Does Alabama require an attorney at closing?

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 ...

Do you need a lawyer to close on a house in Alabama?

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)).

What responsibilities do sellers have before the closing?

Prior to closing, the seller will need to complete any repairs they agreed to make to the house and prove that the title is free and clear of defects. Your closing meeting will take place at the office of a neutral third party.

How long after a house is sold do you get the money?

So once you have a 'sold' sign on the board outside your house you still have a way to go before you will see any money. The sale process can take around 6 to 8 weeks and it's only on 'completion' of the sale that the seller will receive the buyer's money and the keys are handed over.

How soon after selling house do you get money?

Not only do you get cash in your bank, but you get it in your bank quickly! Some quick house sale companies can have the property sold and cash in your bank in as little as 7 days. Yes, that's right – only 7 days for you to receive funds from your house sale.

Does a seller need an attorney at closing in NC?

Unlike some states that allow title companies to facilitate home sales, residential property sales in North Carolina must be processed by a residential real estate attorney. In addition to the buyer, seller, and their attorneys, real estate agents and either an escrow or settlement agent may be involved in the closing.

Does buyer or seller choose closing attorney in NC?

Generally a seller will hire a real estate attorney once he or she has the offer to purchase on the table. A real estate attorney will help the seller negotiate the offer, so clearly buyer and seller would not use the same attorney.

Is an attorney required for a real estate closing in NC?

Many other states in the US operate their closings with a title company and no independent attorney is involved. However in North Carolina, this is not the case. North Carolina has a law that all real estate closings must take place with a North Carolina licensed attorney.

How long does it take to close on a house in Alabama?

What's the average time to sell a house in Alabama? The average time it takes to sell a house in Alabama is 78 days — 43 days to get an offer and an additional 35 days to close. This is approximately 1.3% slower than the national average.

Do you have to have a lawyer to sell property in Alabama?

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.

How do you sell land by owner in Alabama?

A Guide to Selling Land in AlabamaMake sure you have the right to sell the land.Work with the right land broker or Realtor.Have your property assessed to set the right listing price.Get deeded access to the property.Prepare the land for the sale.Market your property.Choose the right offer.Go through due diligence.

Do I Need a Real Estate Lawyer to Sell My House?

When do I need a lawyer to sell my house? You need a real estate lawyer if you’re selling in a state where it’s required by law. Each state that requires sellers to lawyer up does so for different reasons, but the ultimate aim for all is to protect the integrity of home sales in that state.

What is the closing attorney's job?

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.

Where is the closing attorney located?

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.

What documents are reviewed at closing?

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.

Does title insurance have to be purchased at closing?

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.

What does a real estate attorney do for the seller?

A real estate attorney shields your home sale from legal trouble by tackling difficulties that arise along the way.

What does an attorney do for a short sale?

An attorney also will know your state law’s specifications regarding short sales and foreclosures, adds Nogee, who handle s a lot of estate and probate work. He helped to resolve one case where the executor of a woman’s estate in New York City didn’t pay the bills, sending the property into foreclosure.

Why do you need a real estate attorney?

As much as you rely on your real estate agent for their expertise, agents like having a trusted resource to consult, too, especially when a deal becomes complicated. A home is for many people the biggest investment they have, and therein lies a real estate attorney’s value: offering peace of mind.

Who can draft a contract for a home sale?

Depending on where you live and how involved the attorney is with your home sale, a real estate attorney also can draft and negotiate the contract for the sale, as well as prepare the deed, says Jeffrey L. Nogee, a New York City-based partner at the nationwide firm Tully Rinckey PLLC.

Is a realtor neutral?

While a real estate agent is a neutral party in this situation , an attorney can ensure there are no conflicts of interest — or be prepared to go to court in a partition action if necessary. Sometimes even a sale with one owner can turn adversarial, though.

Can you sell a house with multiple owners?

Whether you’re selling property that you own with a spouse or one that you’ve shared with siblings, a sale with multiple owners can dissolve into chaos if there’s no agreement in place (such as a joint tenancy or living trust). While a real estate agent is a neutral party in this situation, an attorney can ensure there are no conflicts of interest — or be prepared to go to court in a partition action if necessary.

Do you need an attorney to close a transaction?

Although many states require a real estate attorney’s involvement at closing, regardless of the complexity of the transaction, using an attorney is more than a formality.

What does a seller's attorney do?

The seller’s attorney prevents or resolves transaction disputes. In the unfortunate event that the transaction goes awry, the seller’s attorney may step in to help prevent or resolve a legal dispute.

What is closing a real estate transaction?

In some states, real estate transactions close through a title insurance company, in which case the title company prepares and records the deed. In other states, transactions close through an attorney, in which case the seller’s attorney likely prepares and records the deed.

How long does it take for a seller's attorney to close a contract?

The seller’s attorney gives general transaction advice. After the contract has been signed, there is a period of several weeks or months before closing. During this period, the buyer may conduct inspections, seek financing, and arrange for closing.

How does a buyer make an offer?

In most transactions, a buyer makes an offer by sending a proposed purchase contract to the seller. If this occurs, then the buyer or the buyer’s agent likely prepared the first draft of the contract. The seller’s attorney would then review the contract and either approve it or request changes. If the contract requires adjustment ...

What does a real estate attorney do?

When representing a seller, a real estate attorney may draft or review the real estate contract, provide general advice, resolve title issues, negotiate transaction terms, and review closing paperwork. Sometimes, the seller’s attorney also prepares the deed and closes the transaction.

Why do you need an attorney for a real estate transaction?

If the seller involves an attorney from the beginning of the transaction, the attorney is in a better position to protect the seller’s interests in an unexpected dispute. Transaction disputes almost always arise from unanticipated or uncommunicated issues. Addressing those issues quickly is one of the most important things a real estate attorney ...

When is the best time to lock in favorable terms on a real estate contract?

But the best time to lock in favorable transaction terms is before the contract has been signed.

What does an attorney do after closing?

After the closing, the attorney processes the loan funding, performs a title rundown to ensure there are no changes in the title, then records the deed, mortgage and other recordable instruments. The attorney will also ensure that all paid off mortgages and liens are discharged.

What is closing attorney?

The Closing#N#As the closing day approaches, the closing attorney will coordinate with the lender for the preparation and delivery of numerous documents to be signed at closing, including the mortgage, promissory note, and most importantly, the HUD-1 Settlement Statement. The closing attorney will also coordinate with the seller to receive the deed to the property, final utility bills, and condominium certificates. The closing attorney is responsible for handling a number of issues at closing: 1 Payoff and discharge of mortgages 2 Payment and allocation of real estate taxes and utilities (water, oil, etc.) 3 Payment of realtor commissions 4 Disclosure and payment of lender fees and closing costs 5 Funding of mortgage escrow account 6 Payment of transfer taxes and recording fees 7 Payment of pre-paid interest 8 Distribution of sale proceeds

Who conducts the closing?

The closing attorney then conducts the closing. He will explain the numerous loan and closing documents signed by buyer and seller, collect and distribute all funds, and otherwise ensure that the closing is properly conducted.

Who is responsible for examining the title of a property?

The closing attorney is responsible for examining the title to the property. For purchases, the title is researched going back 50 years. The closing attorney carefully reviews the title examination to ensure there are no title defects; if there are any issues, the attorney will work with all parties to resolve them.

Does a closing attorney do the closing?

Not only does the real estate closing attorney conduct the closing. Before a sale/purchase contract is signed we often review/negotiate the purchase and sale agreement. As attorney-closing agent we can simultaneously be the escrow agent that hold any funds, such as earnest money, in escrow until they are disbursed, the title agent who examines evidence of title and issues the title policies to the buyer and lender, the closing agent who prepares the settlement statement and disburses the funds, and the attorney for the seller or buyer.

Who is the closing attorney?

The role of the "Closing Attorney" (the attorney representing the Buyer´s Lender) is a varied one, for although the closing attorney represents only the lender, he/she will typically be the liaison for all the parties involved in a particular transaction: the buyers, sellers, realtors, lender, title insurance company, surveyor, and the buyers´ and seller´s legal counsel. As the attorney for the lender, the closing attorney is responsible for certifying the title to the property to both the lender and buyer, preparing the documentation and settlement statement for the closing, and conducting the closing and disbursing the mortgage and other proceeds in conformance with the lender´s instructions. Unless otherwise engaged, the closing attorney does not represent the interests of the buyers or the sellers.

What does a buyer's attorney do?

The buyers´ attorney will review and amend the Offer to Purchase and the P&S Agreement, negotiating the terms of each in their client´s best interests. The attorney will also review the title and the plot plan with the closing attorney to ascertain whether the exceptions to the title are standard or whether there are easements, restrictions, or other rights which interfere with the use of the property. The buyers´ attorney will also typically be in contact with the buyers´ lender, the realtors and the sellers´ attorney before the closing to resolve any outstanding issues between the buyers and sellers or the buyers and the lender, and to confirm that all closing conditions have been met or will be met at the closing.

How does dual representation benefit buyers?

Dual representation benefits the buyers by reducing the total cost of legal fees: The buyers only pay once for the attorney to review the title, obtain from all parties any documentation/information needed in anticipation of the closing, and prepare and review with the buyers all closing documents and costs.

What happens if a lawyer cannot exercise independent legal judgment on behalf of either client?

If a conflict arises during the course of the transaction, or if the buyers, the lender or the attorney feels that the attorney cannot exercise independent legal judgment on behalf of either client, then the attorney must withdraw from representation.

Who is responsible for certifying the title of a property?

As the attorney for the lender, the closing attorney is responsible for certifying the title to the property to both the lender and buyer, preparing the documentation and settlement statement for the closing, and conducting the closing and disbursing the mortgage and other proceeds in conformance with the lender´s instructions.

Does closing attorney represent buyers?

Unless otherwise engaged, the closing attorney does not represent the interests of the buyers or the sellers. The sellers´ attorney represents only the interests of the sellers.

Can a buyer be represented by a lender?

The buyers may choose to be personally represented by the lender´s attorney. Under the rules of the Supreme Judicial Court governing the representation of multiple clients, an attorney is permitted to represent multiple clients if he/she can adequately represent the interests of each and if there is no inherent or obvious conflict between the clients´ interests. If a conflict arises during the course of the transaction, or if the buyers, the lender or the attorney feels that the attorney cannot exercise independent legal judgment on behalf of either client, then the attorney must withdraw from representation. Dual representation benefits the buyers by reducing the total cost of legal fees: The buyers only pay once for the attorney to review the title, obtain from all parties any documentation/information needed in anticipation of the closing, and prepare and review with the buyers all closing documents and costs.

What is a real estate attorney?

Real estate attorneys help oversee home sales, from the moment the contract is signed through the negotiating period (aptly called the “attorney review”) to closing. A seller’s attorney reviews sales contracts, communicates terms in a professional manner and attends closings to prevent mishaps. Selling a home is a complex process ...

Why do you need an attorney for real estate?

An attorney helps you protect your investment and assets while ensuring you’re conducting your side of the transaction legally — which can prevent costly missteps. Real estate attorneys are required in many states, but even if you aren’t legally required to use an attorney while selling, it can be a good idea.

How much does a real estate attorney cost?

How much you’ll pay for real estate attorney fees depends on your market and how involved they are in the transaction, but they typically charge a flat rate of $800 to $1,200 per transaction . Some attorneys charge hourly, ranging from $150 to $350 per hour.

What is an escrow manager?

Escrow manager: The escrow manager, officer or agent is a third-party representative responsible for holding funds during the transaction and making sure every party gets paid the correct amount at closing. In some cases, escrow officers work at title companies, blurring the lines of which party is distributing funds at the closing table.

What to do if you have liens on your home?

Liens: If there are outstanding liens on your home, an attorney can help resolve those issues and clear the path to closing. They can communicate with the title company to make sure all lien holders get paid correctly.

What to do if you inherited a home?

An attorney can help you navigate the complexities. Estate sale: If you inherited the home you’re selling, hiring an attorney to sort through ownership documents can ease the burden, which is especially helpful when you’re grieving the loss of a family member.

What to do when selling a house with someone other than your spouse?

Joint sale: If you are selling a home with someone other than your spouse, an attorney can help you keep both your best interests in mind . As mentioned before, an attorney for each party ensures both sellers’ interests are prioritized.