ATG News Release
SUCCESSFUL REAL ESTATE CLOSING REQUIRES EXPERTISE
THAT IS BEST PROVIDED BY AN ATTORNEY
"The best way to ensure not only a smooth transaction but to receive valuable advice beginning with the contract negotiations, is to hire a real estate attorney," he said. "The purchase of a home is the most important investment most people make. It is important that nothing be left to chance.
Though a lawyer's expertise is needed at virtually every stage of the home-buying process, it is particularly crucial at the closing, Birnbaum continued. "The attorney will explain each document to the consumer, review the closing statement and tell the buyer exactly where the money is going, as well as negotiate any last-minute situations or requests," he said.
"Unfortunately, most buyers and sellers don't read the fine print, and even if they did, it may be difficult for a non-lawyer to understand some of the terminology," he said. The attorney will check for mathematical and substantive errors on the loan documents, ensure the interest rate is correct, and provide the attention to detail that is so necessary for a successful transfer, Birnbaum continued. He noted the two common problems that can arise are a delay in the closing and a problem with the loan documents. "Rather than delay the closing due to one party's unavailability, an attorney will help find solutions that can resolve the problem and get the closing back on track," he said.
For example, a power of attorney can be executed, enabling someone else to sign for the absent party, or the documents can be sent ahead of time to the other party for signing. If the documents are sent ahead of time, that party may have to sign certain documents (the deed, mortgage, etc.) in the presence of an attorney who will witness the signature. "These are the types of detail that an attorney would attend to on behalf of his client," said Birnbaum.
An equally challenging situation will occur if the loan documents which arrive at the closing don't contain the same terms and conditions that the borrower had expected, Birnbaum said. "This problem can be resolved by your attorney who will review the documents, and verify all the terms and conditions well in advance of the closing," he said. Birnbaum emphasized that an attorney can also help save on settlement costs. "The fact is that in states such as Illinois, where lawyers represent buyers and sellers, settlement costs, including attorneys' fees, are generally lower." He said consumers in Illinois not only pay lower fees but receive a tremendous value for their investment.