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FAQ's |
| Residential Real Estate |
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Attorney at Law - Lawyer |
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Dublin, Ohio |
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FAQs
- Frequently Asked Questions - Pre-Contract Through Closings |
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Do I need a lawyer for
my house closing? |
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Yes.
The purchase or sale of your home is a major financial
transaction involving a variety of legal issues that an
experienced real estate lawyer can identify and properly address.
A non-lawyer is not trained, licensed, or qualified to
identify the legal issues and to
protect the legal
interests of buyers or sellers at closings. |
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The Ohio Department of
Commerce, Division of Real Estate & Professional Licensing states in
its Home Buyer's Guide (1/23/2007): |
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Most real estate agents use
standard forms for offers, on which they fill in the exact terms.
You should be very careful about what is written. The terms of the
offer will become the terms of the sale if it is accepted. For this
reason, it is advisable to have a real estate attorney prepare or
review your offer for you. While this is an additional expense, the
cost of attorney fees if legal action results will be much higher.
(emphasis added) |
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Some people recommend against
using a lawyer because they equate identifying problems with
"creating problems," or they would prefer that problems be glossed
over or ignored in order to have an easier closing. A buyer,
generally with the most at risk, should prefer to have problems
identified and evaluated. |
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What can a lawyer do
for a home buyer? |
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Real Estate
Purchase Contract. A lawyer can give advice about what
terms should be in the Real Estate Purchase Contract. A
lawyer can draft the contract or review a form contract that
has been prepared by a non-lawyer. While a non-lawyer is
permitted to fill in the blanks on a standard form, a
non-lawyer is not qualified, and is not legally permitted,
to draft contract provisions and to determine what
provisions should be added to the form to provide the
protection your situation requires. |
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Advice on How to Take Title. A lawyer can give advice
on which way of taking title works best for
your circumstances. |
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Survey Advice. A lawyer can give advice on whether
you should upgrade from the lender required mortgage
location survey
to a better survey that you can rely upon to identify the
property boundary lines, the location of improvements, and
other matters that only an accurate survey can disclose.
Title insurance policies contain a general exception from
coverage for matters that could be disclosed by an accurate
survey. |
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Review the Title Evidence. Before the closing,
a lawyer should review the title evidence to identify any
title problems that need to be addressed and resolved. Title
insurance does not insure good and marketable title; instead
title insurance generally is subject to a list of exceptions
to title that have been discovered by the title search. |
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According to a 2005 survey by the
American Land Title Association, title problems were found
in 36% of all residential transactions, up from 25% in 2000. |
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Some
exceptions to title can be negotiated away. Other exceptions
need to be eliminated or minimized, perhaps by the seller at
the seller’s expense. Some exceptions will not be removed,
but should be explained to you by your lawyer. Also, there are certain matters of
additional title insurance coverage that can be obtained, if you know to ask. |
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Review Closing Documents. Before the closing,
a lawyer can review a number of the closing documents and
identify and resolve problems. |
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Before the
Closing. Before the closing, is emphasized
because a common misconception is that all a lawyer needs to
do is to attend the closing. However, a 30 to 45 minute
closing is not a very good time and place to identify and
resolve problems. Instead, it is better to identify and
resolve problems in the weeks preceding the closing so there
is time to obtain a better result and so the closing may be
a more efficient and pleasant occasion. |
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These are just some
of the matters a lawyer can address for home buyers from
pre-contract through closings. |
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What can a lawyer do
for a home seller? |
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Pre-Contract Discussions.
A lawyer can discuss and give advice regarding the terms of
a real estate listing agreement with the broker and Realtor, including the financial
terms. A lawyer also can discuss and give advice on what
generally is involved in the sale of a house so the seller
is better prepared to deal with issues as they may arise.
For Sale By Owner. While
Realtors can provide valuable services, some sellers prefer
to sell their homes without using a listing Realtor. A
lawyer can give advice and provide documents that will
assist the seller in understanding the process of selling a
home and in being better prepared to deal with issues as
they may arise. When a buyer is found, a lawyer can assist
by preparing the contract and by arranging for the closing.
Title and Property Disclosures.
A lawyer can discuss and give advice concerning any
conditions of title that should be disclosed to a buyer and
that should be specifically referenced in the contract as
exceptions to the seller’s obligations. This may avoid
expensive problems. Similarly, a lawyer
can discuss and give advice concerning any conditions of the
improvements on the property that should be disclosed.
Real Estate Purchase Contract.
A lawyer can give advice about what terms should be in the
Real Estate Purchase Contract. A lawyer can draft the
contract or review a form contract that has been prepared by
a non-lawyer. While a non-lawyer is permitted to fill in the
blanks on a standard form, a non-lawyer is not qualified,
and is not legally permitted, to draft contract provisions
and to determine what provisions should be added to the form
to provide the protection your situation requires.
Recommendation of Title Insurance
Agency. Generally, the seller has the right to
choose which title agency will provide the title insurance
to the buyer. A lawyer who has experience with a number of
title agencies is in a good position to give advice on which
title agencies have the best reputations for quality,
professionalism, service, and reasonable costs.
Review Closing Documents.
Before the closing, a lawyer can review a number of
the closing documents. It is better to identify and resolve
problems prior to the closing so there is time to obtain a
better result and so the closing may be a more efficient
and pleasant occasion.
Availability For Closings.
My general practice in representing a seller is to review
and prepare documents before the closing, but not to attend
the closing unless the seller so requests. I schedule the
closing time and am in my office at that time so I am
available by telephone, fax, and e-mail to respond to any
questions or problems that may arise at the closing. If
needed, I am available to go to the closing. However, if I
am not needed during the closing, I do not charge for the
time that I am in my office working on other matters.
These are just some
of the matters a lawyer can address for home sellers from
pre-contract through closings. |
