Buyers Attorney
A Buyer spends what seems like a thousand weekends searching for the perfect home for them. Once the buyer finds that home, the selling broker helps the buyer fill out and sign a contract which is sent to the property owner, usually accompanied by an earnest money check. At this point, the signed contract is known as an "offer". No offer should be submitted without careful consideration of the attorney's role in the transaction. Just about all "standard" real estate contracts contain "attorney approval" or "attorney modification" clauses. No offer should be submitted unless the contract contains one.
The buyer's attorney will routinely review the various terms of a contract to ensure the contract does not take advantage of the buyer. The main focus is typically the purchase price and personal property included in the sale, the mortgage contingency clause, the inspection clause, and the clause that governs penalties for default. In addition, the lawyer will make sure that the various prorations (taxes, water bills, etc.) are fair to the buyer, and that the seller is giving the required disclosures (as to the condition of the property and in some cases as to the status of lead paint in the home) and warranties. If any changes need to be made to the contract, these are made prior to signing the contract or during the attorney modification period.
Normally, a contract will also contain an inspection provision providing the buyer with the right to obtain a professional inspector to check the property for defects. Inspection clause provisions vary from contract to contract. Some allow the buyer to request repairs be made to the property, some require that repairs exceeds a certain dollar amount and others merely allow the buyer to cancel the deal because the condition of the property is found to be unsatisfactory. The buyer's attorney will assist the buyer in negotiating with the seller's attorney regarding repairs.
Keep in mind that the inspection and attorney review periods usually last for a short and limited period of time. The terms of the contract will dictate this time. Once the periods expire, no additional changes may be made. It is important for a buyer to get a copy of the signed offer or accepted contract to his or her attorney as soon as possible.
The "title commitment" is a written commitment to offer title insurance from a title company. The title company will do a search of the county and state records to determine the legal description and tax identification number of the property, who is currently in title to the property and what, if any, impediments to title exist. Once the title company returns its title commitment, the seller's attorney may go about obtaining documentation to satisfy any "exceptions" to title. An exception is an item which may "cloud" the title and prevent the seller from passing "clear" title on to a buyer. Such items may be building lines and easements, mortgages, mechanic's liens, municipal requirements or any number of covenants or restrictions contained in past deeds.
After satisfying all title exceptions, the attorney will prepare the various documents required to transfer title: a deed, bill of sale, affidavit of title, ALTA statement, closing statement and any other various documents required. These might include a deceased joint tenancy affidavit, a pay proceeds letter or a direction to convey. The list could be endless. The seller's attorney will either have the seller execute the documents in advance of closing or at the closing table. In many cases, sellers need not attend the closing.
After the flurry of activity that precedes the closing date, the actual closing is a test for the seller's attorney. The attorney will make sure that all documents are properly executed by the seller, answer any questions or concerns of the buyer, and settle any contractual disputes or problems that arise. The buyer's attorney will be checking the seller's attorney's work to determine if it accurately conveys title to the buyer.
A diligent attorney can make the closing a quick and painless process for the seller.