How An Attorney Handles The Real Estate Closing Process
The real estate closing process is complex, and this is why it can take several months to finally close on a property that you want to buy. The closing attorney will go through the title records of the property being sold, identify any liens on the property, and make sure the property is free and clear to be sold before the closing can occur. The seller must have a clear title in order to transfer the property to another buyer. If there are liens on the property, these must be taken care of before the new buyer can purchase the home. Legal risks such as easements have to be dealt with, and then the closing paperwork has to be prepared for the sale to go through.
Title Record Searches Before a Closing
In order to sell a property, the title must be free to sell without anyone else having a claim to the property. If there is a lien on the property for any reason, this must be paid off before the home can be legally sold. Mortgages held on the property have to be paid off, and any easements have to be identified and discussed with the new buyer. Once the property has a clean title, it can be sold to a new buyer.
Buyer and Seller Responsibilities and the Closing
Once all records are reviewed, a closing document is created using all the information gathered about the property that outlines the responsibilities of the buyer and the seller. These documents are carefully explained to both parties, where both will learn about any potential problems with the property and have the chance to ask questions. There may be problems with the property that need to be negotiated between the buyer and seller, once an inspection is completed.
When you are the home buyer, the real estate closing attorney deals with the terms of the contract and looks over your mortgage and insurance needs. Your closing attorney as the buyer can handle the entire buying process for you. As the seller of the property, the real estate attorney also negotiates on your behalf but is more focused on preparing the deed and making sure the title is clear. There are times when the entire process is overseen by one closing attorney, with representation for the other party as needed for negotiation purposes. The closing process can take time, but eventually, all the paperwork goes through.