1st-time homebuyer considers closing attorney
Q: I’m a little embarrassed to ask this question, but do I need to hire an attorney for closing? I’m a first-time homebuyer purchasing a new construction home and I hope to close at the beginning of next month.
I have not received the actual closing date yet. The attorney that is holding my earnest money sent me an email stating they will be the closing attorney; however I did not pick them, the builder did. So, is this company also representing me? I’m a little confused. I appreciate your feedback.
A: Let’s start at the top: You should know that real estate attorneys are customarily used to close real estate deals in some parts of the country and not others, but we would like to see all homebuyers have an attorney represent their interests when they close on a home. That means you, the buyer or seller, has to actively engage a real estate attorney to represent your interests only in the transaction.
We can’t emphasize this enough. When you live in an area that does not customarily use attorneys to represent buyers and sellers in real estate transactions, you do not have anyone representing your particular interests. The closing attorney does not represent the buyer or seller. The role of the closing attorney is to facilitate the closing process. This means that the attorney handles the paperwork to get the deal closed and may also handle the issuance of the owner’s title insurance policy for the buyer.
The closing attorney does not get involved in disputes between the parties and does not make a determination on whether one party is right or wrong. In fact, while the closing attorney may han
When you live in an area that does not customarily use attorneys to represent buyers and sellers in real estate transactions, you do not have anyone representing your particular interests.
dle title issues, it’s only so far as to insure title in the name of the buyer.
The closing attorney will not determine whether there are matters on title that could cause a potential issue to the buyer. When the buyer has a lender, the closing attorney may need to clear title issues but only because the lender will have certain requirements that the closing attorney must comply with to get the deal closed.
As you approach your closing date, you can’t rely on the closing attorney for legal advice or any advice on issues pertaining to your deal with the new construction seller.
There is a saying in real estate law from Latin: caveat emptor, or buyer beware. You are on your own to buy the home and it’s up to you to know what to look for and what to ask for.
As you approach the closing on a newly built home, you may decide you need legal advice or someone who can explain to you what documents you’re signing. While many homebuyers go through that process without anybody telling them anything about the documents, and everything turns out OK, you have a chance now to figure out what you want to do and how much information you want to receive.
that needs to happen, some money is held back in escrow to make sure the builder complies in a timely way.
Of course, if you hire professionals to help you with these things, it will cost you money and there is a balance between how Often, when closing on a much you should pay and newly built home, not the risk of having someeverything is quite finished. thing happen and then We recommend creating a paying to fix it down the “punch list”line.ofalmostfinished items, or things We understand that the that were not done corprocess is confusing. rectly, and making sure that That’s OK too. Most homethis list is attached to the buyers are overwhelmed closing documents, so that with the whole homebuythe builder is legally reing process. You have to quired to get these items buy your new home and finished after the closing. then make myriad deci
You may want to hire a sions in short order, inprofessional home inspeccluding choosing movers, tor to do the final walkdeciding whether you through with you and help need to buy furniture, you create the punch list. furnishings and other
And you may want to hire items for the new home, an attorney to see that the fixing or renovating anylist is attached to the closthing before moving in, ing documents correctly, remembering to set up and if there is a major fix utilities, cable and internet packages, and more.
At least with a newly constructed home, you shouldn’t have issues relating to renovation and repairs, but you still need to walk through the home with the builder (and hopefully a professional home inspector with experience in testing out new homes) and make sure everything was done right.
If the home is in fine shape, you need to educate yourself before closing on what to expect at the closing. You can find much more information about that on Ilyce’s website, ThinkGlink.com, or in her book as well. And, if you’re still confused and worried about a particular issue, hire an attorney to walk you through the closing.