7 Essential Tasks of a Real Estate Closing Attorney
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What Are the Tasks of a Real Estate Closing Attorney?
What are the “7 Essential Tasks of a Real Estate Closing Attorney?” Estate planning attorneys from the Faulkner Law Offices explain this and more. Call now!
Author: Stan Faulkner, Founder, Perigon Legal Services, LLC
Mr. Faulkner is an experienced counselor and litigator with 15 years of experience, having held bar licenses in four states (Mo, Il, Ct and Ga). Stan Faulkner uses this experience and focuses his skills in the pursuit of assisting individuals in probate (trust and estate) matters, guardianships and conservatorships, estate planning, business disputes and contract disputes. Published on January 23, 2023.
A real estate closing is the final step in the home purchase process. It is a formal meeting where you and your lender sign documents to make the sale go through. Before the real estate closing, many issues need to be addressed. The buyer and seller often have differing views on the condition of the house and how much repairs are worth. They can also disagree on other factors, such as unpaid taxes and homeowner’s insurance. These disagreements can delay the closing or cost an additional $1,000-2,000 in either party’s legal fees.
A buyer’s loan can take weeks to process and be approved, so it is common for the closing date to be pushed back as a result of a lender’s contingency. Sometimes, this delay can cause buyers and sellers more stress in their final weeks before closing due to uncertainty.
The final process of closing is usually done in person at the lender’s office. The broker is present to answer any questions you have about the process. After it’s over, the lender releases funds for your closing costs and mortgage. At The Faulkner Law Offices, you can count on your Atlanta real estate attorney to help you with the following tasks:
Title Examination
Title examination is an essential process in the real estate industry. It is a process that ensures that the property being purchased has a clear title and has no liens, easements, or other encumbrances that may delay closing. Title examinations are necessary because they protect buyers from purchasing a property that may have title defects, meaning liens or other encumbrances attached to it.
A title examination is done by a licensed real estate attorney who reviews public records to ensure that there are no outstanding claims on the property.
If there are any outstanding claims, they are noted in a title opinion. The title opinion is then attached to the deed and filed with the county records office.
Compilation of Information Related to Property
The real estate attorney compiles information about the property in a real estate contract. This includes information such as the property’s:
- Location
- Size
- Type
The real estate attorney typically reviews public records and documents from various sources. A skilled real estate attorney in Atlanta can assist with this important task.
Title Insurance
Real estate title insurance is a type of insurance that protects the property purchaser from any losses that may result from defects in the title of the property. This includes errors such as missing heirs, unpaid taxes, and incorrect land descriptions.
The coverage for this type of insurance varies depending on what is included in your policy. Some policies cover only certain types of errors, while others cover all kinds. You should also note that these policies are not intended to replace a real estate attorney’s opinion on a title’s validity or provide legal advice.
A closing attorney takes care of the arrangements for the issuance of title insurance to a purchaser and its lender.
Drafting and Negotiation of Contracts
A real estate attorney has knowledge of different types of contracts, not just those used in the real estate industry. Contracts are often used in real estate law when two parties enter into a transaction and want to ensure that they clearly understand what is expected from each other. An attorney helps in the drafting and negotiation of these contracts to safeguard your interests.
Review of Documents
A review of closing documents is an essential step in the home-buying process. It is a process to ensure that the seller has not taken any shortcuts and is fully aware of their responsibilities to the buyer.
A review of real estate legal documents includes:
- Title search
- Property survey
- Home inspection
- Tax record search
- Homeowner’s insurance policy
- Counteroffer or purchase agreement
A good property survey includes a report on the property’s condition, including items like the roof and condition of the siding, exterior paint color, waterproofing, foundation cracks, and mold remediation. These may become factors affecting Closing Costs in Georgia at a later stage.
Coordination
An attorney with a thorough understanding of real estate law in Georgia can coordinate the sale with the buyer, seller, and any real estate agent. Better coordination helps to organize and oversee the real estate process for a property owner. This job typically involves handling a property’s sale, rental, or lease.
Recording and Disbursement of Funds
Real estate attorneys also record and coordinate the disbursement of funds in real estate deals. The government requires you to file a real estate record with them when you sell or buy property to maintain accurate records of your transactions and prevent fraud. The Internal Revenue Service also requires you to file Form 1099-S to collect taxes on your profits.
A real estate record is a document that records the sale or purchase of real estate property. This document is usually filed with the appropriate government office and provides information about the transaction, including, but not limited to, the following:
- Date of purchase
- Price of the property
- Details of buyers and sellers
Disbursement of funds is a transfer of money from one account to another account. It can also refer to an expenditure or payment made from an account. The closing attorneys are responsible for collecting all funds necessary to close, including disbursing the loan of the lender, paying existing expenses against the property, and disbursing the funds to all involved parties according to real estate contracts.
Is a Real Estate Closing Attorney Required?
It is essential to note that unlike in other states, in the State of Georgia, the entire real estate closing procedure, which includes the transfer of ownership of the property, is required to be handled by a licensed attorney in Georgia.
Most of the time, only one attorney is involved in the transaction, who represents the buyer (in the case of a cash purchase) or the buyer’s lender (in the case of a lender-financed acquisition).
Therefore, having an attorney or other legal professional for real estate transactions, such as a house sale, is helpful. They are there to provide legal advice and ensure that the actual closing is completed in accordance with all applicable laws.
An experienced real estate lawyer or law firm can help with the closing process. They also provide services to banks and other financial institutions, as well as buyers and sellers, lenders, developers, brokers, agents, and other professionals involved in the real estate industry.
Call the Faulkner Law Offices to schedule a free consultation today.
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