The Role of a Closing Attorney

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By Rochford Law Posted on October 15, 2020 at 9:41 AM
 

Real estate transactions are some of the biggest people will encounter in their lives. Both residential and commercial real estate carry a large price tag. This larger price means the agreements are usually much more intricate, which can leave either party open to potential vulnerabilities if great care is not taken throughout every step of the process.

This is especially true if you’re taking the For Sale By Owner route. There are a lot of legal documents that will have long-term effects for both parties in the transaction. It’s important to get those contracts right.

But even those working with a real estate agent will need the help of a closing attorney. Your real estate agents are going to have a lot of knowledge relating to these essential documents, but they aren’t going to know everything. An experienced real estate attorney will be able to provide the guidance and assurance needed to confidently make it through the closing process.

The assistance of an attorney throughout real estate transactions is not required in Tennessee, but it’s highly recommended.

So why do you need a closing attorney for real estate transactions?

  • Prepare or Proof Purchase and Sale Agreement
  • Address Issues with the Title
  • Negotiate After the Inspection
  • Inspect Escrow Documents
  • Navigate Any Issues
  • Protect You From Lawsuits

Prepare or Proof Purchase Agreement

The purchase agreement is one of the most important documents in the process of buying and selling real estate. It outlines the basic terms of the agreement:

  • Sale price
  • Conditions of the sale
  • Requirements of both the buyer and the seller
  • Full legal names of all involved parties
  • And more

These agreements are susceptible to changes as the process goes on and more information is learned about the property. You and your real estate agent are able to construct a purchase agreement on your own.

However, a closing attorney can look over this agreement to make sure nothing is left out. An attorney can also help with the initial drafting of this document to make sure you address all the necessary aspects right from the start.

Address Issues with the Title

The title of the house can occasionally have some outstanding issues that affect the timeline of the sale. This includes issues such as:

  • Unpaid balances from previous owners
  • Property taxes
  • Liens
  • Easements

These issues can drag out the closing process, delaying your closing date for months. A closing attorney can help address these issues and expedite this process. Additional documentation might be necessary and an experienced attorney will know what to do.

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Negotiate After the Inspection

Your real estate attorney will do most of the negotiating on your behalf. And if you’re selling your home on your own, this responsibility will fall onto your shoulders. However, a little backup can lend your efforts some more legitimacy.

A closing attorney can provide this needed support with the help of an inspection report. These reports will often come out after a purchase agreement has been drafted. However, these reports can also find notable issues with the property.

Negotiating repairs and even changes to the sales price can be difficult. A closing attorney can provide backup throughout this process.

Inspect Escrow Documents

The escrow process includes many important documents such as the deed, settlement statement, and more. These documents can have a great effect on how the process moves forward and should be inspected by a professional.

Again, your real estate agent will have seen many of these documents in the past and will most likely be able to provide advice on how to proceed.

But as we said earlier, these transactions carry a large price tag. You want to be absolutely sure nothing falls through the cracks. A real estate attorney can provide this extra layer of security to make sure everything is in order.

Navigate Any Issues

Every step along the way to closing day can have issues. These complications can lead to the sale falling through completely. You don’t want to start back at the first step, so it’s better to try to work through any potential issues and find a resolution.

A closing attorney will be able to advise you on how to proceed in these situations. Occasionally, it will be best to walk away from a deal if too many issues are found. But there will also be many ways to deal with these potential issues. A closing attorney will know how to navigate that, as well.

Protect You From Lawsuits

Disclosures are incredibly important throughout the real estate sales process. Leaving out any potential issues can open up a seller to a variety of legal troubles. You can be held liable for these issues even if you didn’t realize their disclosure was a necessity.

The real estate closing attorneys at Rochford Law & Real Estate Title will be able to advise you on all necessary disclosures. This protects you from facing legal troubles down the road.

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Topics: Buying A Home, Nashville Real Estate, Nashville Real Estate Attorney, Real Estate Closing, Real Estate Title