The excitement of purchasing a property often gives way to anxiety when it’s time to close. This is because you are confronted with mounds of paperwork that look very foreign to the average person. It can be a lot to handle, but you don’t have to go it alone. This is why you want a real estate attorney by your side, both before and during closing, to help you understand what you are signing and head off any potential problems with the new property.
While your real estate agent and the closing agent can be quite helpful, they are not licensed to practice law and can be unaware of a small detail that could cause big problems for you down the road. Some of the things that a real estate attorney can do for you include:
Review of conditions precedent — these are requirements that certain conditions be met before the transaction closes to protect the buyer. Some of the conditions precedent you want your attorney to review include:
- Loan documents, to ensure the terms of the loan as you understand it are correct and that the appraisal on the property supports the loan;
- Inspection documents, to ensure any problems identified in the inspection have been addressed and/or corrected;
- Property survey, to ensure the boundaries of the property have been properly conveyed and that the survey includes all improvements, easements, and third party rights of access; and
- Consents, to ensure there are no outstanding HOA assessments due on the property and that, if required, the HOA has consented to the transaction.
Review of seller’s documents — including the settlement statement, deed, disclosures, owner’s affidavit, and any other documents that may be necessary to resolve any title issues.
Review of buyer’s documents — including the settlement statement, any existing lease, seller’s disclosures, the deed, title commitment, and title insurance policy, all and all mortgage documents t, including, but not limited to the Loan Estimate form and Closing Disclosure form.
The Loan Estimate provides the borrower with detailed information on the key terms of the loan, projected payments over the life of the loan, and a breakdown of the closing costs. It also provides information on the borrower’s total payments over a five-year period as well as the APR and total interest percentage over the life of the loan.
The Closing Disclosure includes information on the loan terms, projected payments, closing costs, loan costs, a calculation of cash to close, a detailed line-item summary of the loan transaction, and additional information.
Having a real estate attorney involved before and during your closing is one of the smartest things you can do to ensure you are protected and that the closing will be a smooth one.
Our real estate attorneys represent parties on either side of real estate and financing transactions, including buyers, sellers, landlords, tenants, lenders, borrowers, trustees, guarantors, shareholders, partners, and others. We advise, structure, negotiate, and document a variety of real estate and financing transactions, including leases, purchase and sale agreements, financing agreements, and development agreements for a variety of commercial and residential projects. Contact us today and learn how we can help.