A residential real estate transaction represents a significant transfer of money between numerous parties. Lack of planning and attention to detail can have devasting consequences to all involved. Realtors will often look to an attorney to provide insight and guidance from start to finish during the closing process.
Aside from reviewing any documentation to ensure its accuracy and completeness, a legal professional will often perform three essential tasks during the real estate closing process so everything runs efficiently, including:
- Title examination: Problems with the title will lead to significant complications in the future. An attorney can carefully examine the title of the property to ensure there are no restrictions, easements or encroachments. Additionally, it must be clear that the seller has the ability to transfer the property to the buyer.
- Title insurance: After a thorough examination of the title, the attorney can provide an analysis and opinion to the title company. This is an essential step in protecting the buyer’s rights to the property through title insurance.
- Coordination: From the lender and realtors to the buyer and seller of the property, numerous elements must be carefully coordinated. Additionally, the closing attorney can coordinate other parties such as the home inspector, contractors, homeowners association representative and the homeowners insurance company. The larger the project, the more essential effective coordination is to the process.
From preventing potential delays to eliminating title issues, an attorney can ensure the closing process runs smoothly and efficiently. Realtors rely on the advice and guidance of an attorney through the closing process. Whether they are reviewing documentation to ensure compliance, or they are providing insight in an increasingly complex transaction process, it is wise to have an experienced lawyer involved.