Whether buying or selling real estate, it’s in your best interest to hire a lawyer to represent you through the transaction process. Because even the simplest real estate deals come with complicated legal language, terms, and conditions. Besides, New York is one of twenty-two states which requires the presence of a lawyer during real estate closings.

Why It’s Important to Hire a Lawyer

The buying or selling transaction process involves attorneys, title insurance companies, property surveys, real estate agents, buyers, sellers, and mortgage brokers or bankers. And all of these people have their own sets of paperwork and legal jargon that may overwhelm you. A real estate attorney understands and sorts through the jargon and ensures your legal rights are protected.

There are also times when residential real estate transactions begin well, but disputes pop up during the process. And every real estate transaction should be fair and impartial for both seller and buyer.

Real estate transactions are expensive. But if they’re mishandled, they can result in problems for the buyer for years after the purchase.

What Lawyers Do to Help You with the Transaction Process

1. Lawyers Draw Up and Negotiate the Terms of the Contract of Sale

The seller’s attorney draws up the contract of sale with the price and terms and conditions already agreed upon between the buyer and seller. Some items included in a contract of sale include:

• Down payment (usually ten percent of the purchase price)
• Mortgage contingency (the time the buyer has to obtain a mortgage commitment, usually 30 to 45 days)
• Approximate closing date
• List of repairs that need to be done by the seller and appliances, fixtures, and all items that stay after the sale is completed

2. They Protect Your Best Interest

As a buyer or seller, your lawyer is there to make sure all documents you sign are in your best interest.

Your real estate attorney is also the mediator between the bank, title company, and real estate agents. They are there to coordinate the closing and make sure the monies are distributed properly.

3. Real Estate Attorneys Attend Closing Time

Ownership is transferred from the seller to the buyer at closing time, and their papers to be signed and checks to be passed around.

The closing is attended by both the buyer’s and the seller’s attorneys, the lender’s attorney, and a representative from the title company. And each represents their clients’ best interests.

Seller’s Attorney

The seller’s attorney is there to handle the payoff of the seller’s:

• Mortgage
• Back taxes, if any
• Fees
• Other payoffs due at this time

This is done through the title closer.

Buyer’s Attorney

The buyer’s attorney is there to:

• Ensure the terms of the contract are followed
• Make sure mortgage documents are all in proper order
• Ensure that everything that was agreed upon by the seller to the borrower (buyer) is honored
• Make sure a clean title is transferred to their client, the buyer

And Others Who Attend the Closing

Title Closers

Title closers are there to represent the title insurance company and their client, the buyer.

Title Company

The title company attends the closing to:

• Ensure all liens, fees, and any existing bills are paid
• Make sure a clean title of ownership is transferred to the new owner

Lender’s Attorney

The lender’s attorney is at the closing to represent the mortgage given to the buyer.

Bank Attorney

The bank attorney, as we call them, is there to:

• Have all the documents signed by the borrower (buyer)
• Collect any remaining fees due to the lender by the borrower

Hire a Lawyer – It’s a Small Price to Pay

As you can see, there is much to deal with in real estate transactions. And the price to pay to hire a lawyer for peace of mind is small.

If you’re buying a home in New York, you must hire a lawyer to negotiate the contract of sale and represent you at closing. So, do your research to find and hire a lawyer who will truly represent your best interest.

If you need to buy or sell your home, contact Charles D’Alessandro, your Brooklyn Real Estate Agent with Fillmore Real Estate. Call (718) 253-9600 ext. 206 or email [email protected]. 

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Charles D’Alessandro
Your Brooklyn Real Estate Agent
718-253-9600 ext. 206

Tags: How do lawyers help with the transaction process?, Is a lawyer required for real estate transactions in New York?, Is a real estate attorney worth the price you pay?, When do you need to hire a lawyer?

This entry was posted on Monday, September 30th, 2019 at 5:00 am and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.