Pore over escrow documents to catch any red flags
Once you open escrow, your escrow officer will send you documents to fill out, which include the grant deed, state-specific forms, the property information statement, and more. Your closing attorney will guide you through this paperwork and be able to identify any mistakes before you sign it.
Your real estate agent, who’s likely seen thousands of escrow documents before, will be familiar with the process and be able to do the basic parsing of the paperwork. But as with any important documents, especially in a transaction as large as real estate, it’s smart to have a lawyer review them before signing.
“In terms of closings for a general sale, it’s always good to have someone there to make sure all of the T’s are crossed and the I’s are dotted,” says Brett Wasserman, a practicing real estate attorney. “Because you don’t want to give them grounds to come back and sue you after the fact for misrepresentation or breach of contract.”
Review fees incurred by the home sale
When you sell your home, you have to pay closing fees, including your real estate agent’s commission, your outstanding mortgage balance, property taxes, homeowners insurance, and more, depending on your situation.
A real estate attorney will review these fees before you pay them to make sure you’re getting the best deal possible, and that there aren’t any errors or miscalculations that could cost you. A real estate attorney who has experience with finance pays off here; you want someone who knows how to do the math.
Why you should seriously consider hiring an attorney at closing
If you try to get through a sticky sale without legal help, you could risk losing the sale, or at least your time and money. Here’s what might happen:
The sale could fall through
If and when an issue comes up before closing, you’ll have to resolve it before you can move forward. The alternative is that the entire home sale could fall through.
A top real estate agent will work between you and the buyer to negotiate over the property itself by helping you craft counteroffers, pick a closing date, etc. to keep the sale moving forward. But, there are more complex issues that go beyond standard negotiations that could get you into legal hot water — and your real estate agent won’t have the expertise to get you out.
A real estate attorney can walk you through complicated situations and minimize the blow to your home sale and your personal assets. Some situations that pose issues that could derail the sale are:
If you find yourself in any of the above scenarios, contact a real estate attorney to protect you throughout your home sale.
You could sacrifice time and money
In the most simple transactions, an error in the language of the contract can be virtually unnoticeable to those who aren’t trained to see it.
If you or your real estate agent miss something, even the smallest mistake can haunt you down the line. A closing attorney will thoroughly review every document to make sure that buyers aren’t taking advantage of you.
“I see it time and time again,” says Wasserman. “The money that’s invested up front in retaining a lawyer is pennies to the dollar in what’s spent when it hits the fan and you need a lawyer.”
He adds that if you hire a real estate attorney to protect you right from the beginning of the sale, it will save you time and money. So, it’s better to invest in a lawyer to help you from the get-go than to wait until there’s actually something wrong.
You could open the door for lawsuits
If you know about an issue with the property and you don’t disclose it, such as a rotted subfloor, or if a repair job that the buyer requested was done incorrectly, you could be liable for extra costs.
If you conceal or hide issues that you are legally required to disclose, it’ll come back to bite you down the road. Be honest about your property up front to avoid a lawsuit, and have a real estate attorney in your corner for protection.
Why a closing attorney is your best guarantee for an airtight home sale
With a real estate attorney by your side during the closing of your home sale, you’ll avoid issues that could cost you time, money, and the deal itself. Plus, an attorney’s professional presence will help you rest easy during those weeks between contract and close.
For this reason, some states require that home sellers have an attorney present during closing. Even if you aren’t required to hire one, the cost for the added protection of an attorney is just a fraction of the cost of the house that’s on the line. Talk to your real estate agent to find trusted real estate attorneys in your area, or search for one on your state or county bar association website.
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