Anne C. DiMatteo, Esq., 716-491-1670, Real Estate Attorney 14224-West Seneca:
How does a real estate transaction work? That is a question that many buyers and sellers often wonder about. Another question is what does a real estate closing attorney do when they conduct a closing and how and when do I pay them? The closing attorney is the “captain” of the closing process and the paralegals that are assisting are the crew, performing many labor-intensive tasks, to bring your transaction from the initial phone consultation to closing and property ownership.
How do I find assistance and what should I pay? Fees for real estate closing services vary from attorney to attorney and from market area to market area. For the best explanation on how much you should pay you should ask people experienced in these transactions. Usually, attorney fees are paid at the end when the transaction closes. I am available 24 hours every day, at no charge, to talk to you about everything in this article should you want to.
The beginning of any real estate transaction is the negotiation and signing of a contract. Contracts can take many forms. Some are even written on a napkin, which is not a good practice. Typically a contract approved by a local lawyers association or board of realtors is used as a standard contract in the industry. However, sometimes builders, developers, and people who buy and sell property often insist on using a custom contract. It is a good idea for you at least to call an attorney before you sign anything so you can feel assured that what you are signing is a “standard” type contract.
After you decide on an attorney whether you’re buying, selling, mortgaging or developing real property, steps are taken by your attorney to verify who actually owns the property. This is done by looking at abstracts of title, reading title reports, talking to you, examining tax receipts, reading surveys and deed descriptions, looking at open mortgages and judgments or liens. The list is almost endless and many things impact who owns the property and what documents may need to be prepared to close the transaction and guarantee that the property is transferred free of liens, taxes or other encumbrances.
Anne C. DiMatteo, Esq., 716-491-1670, Real Estate Attorney 14224-West Seneca: Generally, title going back for 50 years is examined. The closing attorney, title insurance company, and title examiner selected by your attorney all carefully review the title examination to ensure there are no title defects. If any defects in title or other issues arise your attorney will work with everyone involved in the transaction to resolve them. In every real estate transaction, there are issues that need to be resolved. Some defects in the title are more serious than others, some can be insured against with title insurance and others cannot be resolved to require you to take the risk that title is defective or canceling the transaction altogether. I typically waive my fee when a residential real estate transaction has to be canceled when his office cannot clear title.
When you’re selling your attorney also coordinates the issuance of title insurance to the lender and the new home buyer. It is usually a good practice for buyers to obtain there own title insurance so that in the event something was missed during the closing process or there are hidden title defects their real estate investment will be protected.
When the closing day is finally scheduled the closing attorneys for the buyer, seller, and mortgage company if any will coordinate a time to sign the necessary papers to close the transaction. Many things take place on the day of closing including recording the deed, mortgage, required affidavits, tax payoffs, payoff and discharge o any open mortgages, payment of realtor commissions, disclosure and payment of lender fees and closing costs, funding mortgage escrows, payment of transfer tax and recording fees, payment of pre-paid interest, distribution of sale proceeds and summary of all disbursements and distribution of money often called a closing statement and closing disclosure. I am available every day, at no charge, to talk to you about everything in this article should you want to call me.
The process of closing is straightforward but is usually more than one expects. It is important to hire someone that you feel comfortable with and is accessible to you anytime.
If you have any questions you want to submit to me about a real estate transaction you’re thinking please ask me by filling out the information below. I hope you found this article of assistance.