Lawyers can serve as invaluable partners during any transaction, from the preparation of deeds, ordering mortgage payoffs, and clearing any title issues to conducting title searches and closing deals.
Residential real estate lawyers also help in finalizing contracts by challenging any unreasonable contingency clauses and being up-to-date with local, state and federal laws that pertain to property transactions.
Contract of Sale
An attorney is essential in creating an accurate contract of sale. They can assist in outlining all terms of the deal, such as names and addresses of all parties involved as well as details about the property being sold. A contract of sale also needs to address what will happen in case one party breaches it, including penalties or financial damages that may ensue from breach.
The agreement should include representations and warranties from both parties regarding their authority to agree to the sale, while providing enough time for due diligence and investigations into any problems with the property such as inspections, surveys or any other forms of investigation. It should also provide details of a cooling-off period which allows buyers to terminate without incurring significant penalties.
Contracts should also clearly establish the transfer of property ownership; this can be accomplished with a closing meeting where deed is transferred to new owner of property.
Preparation of Closing Documents
Once any title issues have been settled and a Contract of Sale signed, it’s time to initiate the closing process. An appointed closer will open an escrow file and begin processing items such as tax information, payoff letters, survey (if required), homeowner/association fees, inspection reports/inspections reports and hazard insurance policies.
Your attorney will order and review the title report to identify any outstanding issues such as liens or violations that need to be resolved before closing, then calculate and prepare an estimated closing cost statement showing all debits (closing expenses) and credits (seller’s net proceeds).
Your lawyer will also prepare seller documents like the new deed and affidavit of title for you, working alongside the Buyer’s attorney to complete a loan package including mortgage document, first payment letter and property tax documents. Lastly, they will attend closing as your representative and answer any queries that arise during closing.
Inspections
Home inspections involve conducting a visual evaluation of an entire property from roof to basement. Trained officials perform this service and identify major defects like roof replacement needs or severe foundation cracking; then provide detailed reports. Most often, buyers pay for this service themselves and include its results into their contract with sellers.
As well as identifying problems, inspectors advise buyers of potential issues that could surface later, including roof maintenance costs or future repairs on water heaters and heating systems. He may suggest additional tests, including for mold/mildew/pest issues; lead/radon levels; etc.
New York law mandates that homeowners disclose all known defects in their properties to buyers before selling them, lest buyers withdraw from the transaction or file suit for damages. A lawyer can ensure the disclosure form contains all pertinent facts to protect sellers from liability while simultaneously organizing an inspection before sale.
Negotiations
Negotiating with buyers requires more than simply considering price. By agreeing to terms such as changing closing date or offering leaseback option, this could allow you to gain more money in your pocket while still selling the home.
Real estate attorneys are skilled negotiators, capable of fighting more effectively on your behalf than realtors can. They will assist with negotiations and draft contracts that match up with your goals and priorities.
Your lawyer will carefully consider your offer to purchase, draft a purchase and sale agreement, clear any title and municipal defects, prepare disclosure documents and attend closing in order to facilitate a smooth transaction. In addition, they can help provide guidance regarding other issues that arise during this process such as surveys that reveal lower values for properties you wish to sell, forcing you to either accept the findings and lower asking prices accordingly or dispute them and delay closing on sales.