Beyond the Handshake: Understanding the Importance of Legal Counsel at Real Estate Closings

If you are preparing for a real estate transaction, do you need an attorney? Or, can you rely on your broker, lender and insurance agent to guide you through the closing process?

While all of these individuals are essential to the real estate closing process, hiring an experienced real estate attorney is essential as well. When you hire an experienced real estate attorney, your attorney will work alongside your broker, lender and insurance agent to help make sure no unexpected issues arise. If any unexpected issues do arise, your attorney will be available to provide legal advice and take any necessary legal action on your behalf.

How an Attorney Can Help At Closing

When representing buyers and sellers, brokers must be extremely careful to avoid providing legal advice—as this is strictly prohibited. Lenders and insurers are prohibited from providing legal advice as well.

But this is exactly your real estate attorney’s role. As a result, there are certain questions that only your attorney will be able to answer. Brokers and agents often rely on attorneys to ensure that they are providing accurate answers as well. For example, working with an experienced real estate attorney will be essential for ensuring that you have accurate answers to questions such as:

• Have all of the necessary documents been prepared and presented?
• Do the documents accurately reflect all of the negotiated terms of the deal?
• Have all necessary conditions been satisfied (and is documentation available)?
• Are the proper mechanisms in place to ensure the appropriate transfer of funds (including the transfer of funds into or out of escrow)?
• Is each party signing and initialing everywhere that a signature and initials are required?

These are just examples. Additionally, if issues arise during closing, you may need to rely on your attorney to answer critical questions in this scenario as well. For example:

• What if the other party doesn’t show up or refuses to sign?
• What if the purchaser isn’t prepared to transfer the necessary funds?
• What if there are questions about language in the purchase agreement?
• What if there are last-minute issues with the title to the property?
• What if there are last-minute issues with a lender or insurer?

How an Attorney Can Help After Closing

While attending closing is generally the last step in the process for buyers and sellers, at this point there is still a significant amount of work that needs to be done behind the scenes. An experienced real estate closing attorney can play a critical role post-closing as well. From recording the transaction to ensuring the appropriate transfer of funds, your attorney will be able to oversee the entire post-closing process and let you know when you can consider the transaction final.

Speak with a Real Estate Closing Attorney at Rendigs

Do you have questions about hiring a real estate closing attorney? If so, we are more than happy to provide the insights you need to make an informed decision. To schedule a call with an attorney at Rendigs, please call 513-381-9200 or request a consultation online today.