The process of purchasing or selling real estate consists of several steps, one of which is the closing phase. While signing paperwork may appear to be a simple task, the closing process requires legal scrutiny to verify that everything is done legally. This is where a real estate lawyer comes in. Their competence protects your interests, resulting in a smooth and legally sound transaction. Keep reading to learn more about the role of a real estate lawyer in the closing process.
- Reviewing and Drafting Contracts: One of the real estate lawyer’s main responsibilities is to evaluate and create the selling agreement and other legal documents involved in the transaction. This ensures that all terms are understandable, fair, and legally binding. They will look for hidden clauses, confusing language, or terms that are detrimental to you, allowing you to avoid potential legal complications later.
- Conducting Title Searches: Before closing, it’s important to ensure the property has a clean title, which means there are no legal claims or unpaid liens against it. Your real estate lawyer will perform a title search to identify any potential concerns, such as outstanding debts, claims from past owners, or boundary disputes. If any concerns are discovered, the lawyer works to remedy them before closing so that you do not inherit any legal problems.
- Overseeing Financial Transactions: A real estate lawyer is also involved in the financial aspects of the transaction. This involves ensuring that the appropriate money, such as the buyer’s down payment and loan proceeds, is correctly deposited in the escrow account. They will also guarantee that taxes, closing costs, and other fees are paid correctly.
- Finalizing the Deal: Your real estate lawyer will be present at closing to finalize all documents and ensure that everything is in order before you sign. They will also guarantee that the title deed is properly transferred, preserving your legal ownership of the property.