What Does A Real Estate Attorney Do For Buyers?
Full Transcript: Another question we get is what do real estate attorneys do for buyers? I presume this is in the residential context. So what we’ll talk about if you’re buying a home, so a real estate attorney is going to first negotiate and review the contract that you’re going to enter into with your seller, in some states that the realtors may actually prepare the contract, in other states a lawyer has to prepare the contract.
So that’s in the preparation of the contract. Then they’re going to review the contract, ultimately once the seller has made their changes and signed it, the buyer signed it to make sure that the contract is, in fact, enforceable. Then the real estate attorney is going to make sure that the earnest money is deposited to the appropriate escrow agent. If in fact the real estate attorney, the buyer’s attorney is also the escrow agent of the title company, they will take the deposit and they will hold it.
Title Insurance Commitment
The next thing that will happen is as a buyer you will be issued a title insurance commitment by the title company, whether it’s a title company that’s owned by the attorneys or a separate title company, and they will review the title commitment to see if title is clean, to make sure that what you’re buying is in fact what you’re getting. And if there are problems they will outline what those problems are, and they will contact either the seller’s attorney or the seller’s realtors and say, “Hey, these problems have to be resolved. You got these outstanding mortgages.
Outstanding Leins & Tax Issues
You got these outstanding liens. You have these outstanding tax issues either with the IRS or back taxes that haven’t been paid,” and you’ll confirm how in fact these issues will get resolved. Then if the buyer is getting a mortgage, there may be some discussion that the buyer’s attorney has with the mortgage company, or may review the mortgage commitment to make sure that it’s conventional and is consistent with market standards.
And then through the process, if anything pops up, whether a lien or any other issue that comes up, the attorney is going to be there to jump in and help resolve the problem to get the deal done. It could be a tenant in the building. There could be some liens that they need to be addressed. So easements have to be addressed. It could be some survey issues where the survey’s not surveyed properly.
There could be a legal description issue, where the legal description’s not consistent with the prior title policy. They’re all these kinds of things that just kind of percolate up from time to time. And so, having an attorney who represents you as a buyer is probably peace of mind, especially if you a, do this professionally for a living, or if this is a once in a lifetime or one of the big investments of your life, you should have a real estate attorney by your side.
From the trenches,
Roy D. Oppenheim
Original source posted March 24th 2019 on Oppenheim Law: https://www.oppenheimlaw.com/news-resources/videos/what-does-a-real-estate-attorney-do-for-buyers/
Oppenheim Law | Real Estate Attorneys Fort Lauderdale
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Roy Oppenheim is a sought-after legal expert on issues relating to real estate, real estate litigation and commercial litigation. In 2009, he started the South Florida Law Blog to address the real estate market and foreclosure crisis. The Blog has been voted the best business and technology blog by the South Florida Sun-Sentinel. Mr. Oppenheim has been a contributor to Yahoo! Homes, featured on HuffPost Live, FOX News, and Lifetime TV, and quoted in prominent national publications, including USA Today, The New York Times, Huffington Post, WSJ, US News and World Report, The Financial Times, the National Law Journal,Florida Bar News, Sun Sentitnel and Miami Herald. Most recently, Mr. Oppenheim hosted an Ask Me Anything on Real Estate on Reddit. Mr. Oppenheim has also co-authored two law review articles: Deconstructing The Black Magic of Securitized Trusts, and The Emperor’s New Clothes.
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