We sometimes receive calls from clients asking whether they should have legal representation at a “routine” real estate closing. Our answer is almost always yes. Why?
Would you drive your car without liability insurance? Would you allow your homeowners’ coverage to lapse? Obviously you would not. So why would you go to a real estate closing without the insurance of having a skilled real estate attorney looking over your shoulder?
It should come as no surprise that hundreds of thousands of dollars now change hands at even the most routine settlements. And it seems that everybody at the settlement table wants a piece of the pie. There are “conveyancing charges”, “broker services”, “document preparation fees”, “underwriting fees”, “closing fees”, “disbursement fees”, and the list goes on and on. Are all of these charges proper? Are they fairly calculated? An experienced real estate attorney will scrutinize these carefully, many times saving the client money.
What about all of the adjustments between the buyer and the seller? Taxes are adjusted, as are utilities, condominium fees, association dues, and similar payments. Has the seller paid all of these items? Have they been adjusted properly as of the date of settlement?
What about title issues? If you are the buyer, do you have the knowledge and experience necessary to evaluate the report of title? Is the legal description of land correct? Has it been compared to a survey of the property?
Being represented by an attorney at closing is valuable insurance. Often times a trained attorney can save a client more than the cost of representation at the settlement table; in some instances a major (and costly) problem can be avoided.
One more point: In many instances, clients are preoccupied with the endless details of buying or selling a home and relocating, and the usual chaos that accompanies it. Having a calm, disinterested advisor at settlement can alleviate much of the stress of what is usually a very stressful time.
Call us if we can ever help in this area.
— Kevin Palmer