FAQS

Frequently Asked Real Estate Questions

Do I need an attorney for a real estate closing?
Technically, No! Practically, Yes! Your attorney can protect you from costly mistakes, errors in the documents, errors in the figures, and problems that could lead to litigation or other costly legal action. The nominal closing fee for an attorney is far less than the undetected clerical errors and fees for post-closing legal action that many people without a competent attorney incur.

What does the attorney do for me?
If you are the Buyer, your attorney will:

• Review and negotiate the specific terms of the contract;
• Help you evaluate financing options and explain the terms of your loan;
• Evaluate all documents, such as the deed, title policy, mortgage, survey, closing statement and seller disclosure statement;
• Attend the closing and make sure you receive clear title; and
• Inform you of any facts that affect your interest and provide counsel if difficulties arise.

If you are the Seller, your attorney will:

• Review and negotiate the specific terms of the contract;
• Order title searches, surveys, mortgage payoff letters, condominium documents and all other items required for closing;
• Prepare the deed, all other closing documents and prepare the closing figures;
• Schedule the closing at a time and place that is convenient for you;
• Attend the closing and make sure that you convey clear title; and
• Inform you of any facts that affect your interest and provide counsel if difficulties arise.

How much will my closing costs be?
Each deal is different. The sales contract, which is negotiable, specifies which costs are paid by the seller and which costs are paid by the buyer. Also, the buyer will have certain charges associated with the mortgage loan which vary from one lender to the next. Some lenders may only charge an appraisal fee and credit report fee while other lenders may also charge application fees, processing fees, underwriting fees and document preparation fees. You should always get a good faith estimate of the settlement fees and closing costs prior to choosing a lender. At closing, as your attorneys, we scrutinize your charges to make sure that they are in line with your good faith estimate.

Do I have to attend the closing?
You should make every effort to attend the closing in case new issues arise at the closing table. However, if there is an emergency that prevents you for attending, you might be able to presign some of the documents and in some cases, an agent selected by you, under a Power of Attorney, may be able to fill in for you, provided the title company and mortgage company consent to the Power of Attorney format.

After closing, can I just add my children to the title of my property with a Quit Claim Deed?
Possibly, but there might be reasons why you may not want to do this! In many situations, this can lead to severe tax ramifications or loan defaults. Also, if your child is on title, and is sued, the creditor can take the entire property to satisfy the judgment. Always seek competent legal advice prior to executing a Quit Claim Deed.

These are just a few of the most frequently asked questions. Please feel free to e-mail any of your detailed questions on these topics or any other questions that might pertain to real estate law.