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Q |
Do I
need an attorney for a real estate closing?
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| A |
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. |
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| Q |
What
does the attorney do for me?
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| A |
If you are the Buyer,
your attorney will:
- Review and discuss 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
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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 discuss 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.
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| Q |
How
much will my closing costs be?
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| A |
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.
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| Q |
Do I
have to attend the closing?
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| A |
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 pre-sign 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. |
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| Q |
After
closing, can I just add my children to the title of my property with
a Quit Claim Deed?
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| A |
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. |
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These are just a few of
the most frequently asked questions regarding real estate law.
Please feel free to e-mail any of your detailed questions regarding
real estate law or any other legal topic.
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