For most persons, the purchase and sale of their homes
will be the largest financial transaction that will occur during their
lifetimes. As a result, the importance of wholly protecting such
an investment can not be overstated. From the day you make your
decision to buy your home until such time that you have become the legal
owner, there are a number of important decisions you must make which
have legal consequences. The following is a brief summary of
several aspects of your sale and how your attorney may assist you.
THE REAL ESTATE CONTRACT
The Contract, or Offer to Purchase, is a very important document and
should contain all of the terms involved in your purchase, including the
purchase price, and how it is to be paid, a description of the property
being purchased, and any conditions of the purchase. You should
read any Contract or Offer to Purchase carefully before signing
it. If you have any questions concerning the meaning or effect of
any portion of the proposed contract, you should consult your attorney before
signing it. The Contract is a legal document and is binding on the
seller and buyer.
TITLE SEARCH
If you are obtaining a loan, your lender will require that an
attorney examine the county land records prior to closing. If you
are not obtaining a loan, you should still have your attorney examine
the records to make sure you are buying what you think you are and the
property is free and clear of (1) claims of others, (2) judgments, (3)
outstanding deeds of trust or mortgages, (4) unpaid taxes, (5) defective
deeds and similar defects. Your attorney will report to you, your
lenders, and the title insurance company, if applicable, what his search
of the public records disclosed.
TITLE INSURANCE
Title insurance insures against hazards inherent in real estate
titles, but which may not be apparent from the title search. Your
attorney cannot guarantee against certain defects in the title not
generally discoverable from a review of the public records.
Defects of this sort include forged deeds, missing heirs, clerical
errors and the like. However, a typical title insurance policy
will protect against defects such as these. Your lender may well
require that you protect its investment with title insurance, as you may
also do, as owners. Your attorney will apply for the title
insurance for you.
CLOSING
Prior to closing, instructions from the lender are sent to your
attorney, a survey is completed, pest inspections are made, you will
have obtained a homeowner's hazard insurance policy and arrangements
will have been made for defects or incomplete items. the attorney
is responsible for preparing all necessary closing documents, scheduling
the closing, explaining all necessary closing documents and having them
properly executed and recorded. You will receive copies of most
closing documents, including an itemized record of all money paid by you
on your behalf.
SELECTION OF ATTORNEY
Thus, an attorney's role in real estate transactions may include
consultation prior to signing of the Contract, preparation of closing
documents, the title search and certification, presiding over the
closing and recording of the deed and mortgage. All of this work
is done in close coordination with the Buyer(s), Seller(s), Realotor(s),
and Lender(s). The attorney strives to assure that this complex
procedure is carried out in the most pleasing and expedient manner
possible. Therefore, choosing an experienced real estate attorney
to handle your purchase and the closing is especially important.
SELECT AN ATTORNEY WHO REPRESENTS YOUR INTEREST
If you are paying the attorney fees, you alone should select the
attorney to insure that your interests are being represented and not
that of the other parties in the transaction.
CONCLUSION
Please accept the above comments as a short statement to introduce
you to legal issues that may be involved in a real estate transaction
and not as any specific legal advice or opinions. If you have any
questions, you should contact your attorney.
