The Role Of An Attorney
Buying a home is going to be one of the most important financial deals you are going to make in your lifetime. While making a purchase of a home, which is unique and unlike buying a car, a lot many points of real property are involved, which requires an attorney to lead you through. Once you make a decision to buy a house, the next significant decision should be to hire an attorney, someone well versed in real estate law.
An attorney represents you, and only you, in the transaction, and his role includes explaining the terms of the purchase contact, including - what should and what should not be included in it. He helps negotiate with the seller or the seller’s agent, and ensures that the terms of the agreement are favorable to you. It is often argued that real estate agents and brokers also provide the same service - and therefore there is no need for an attorney.
True! However, typically, the seller pays the real estate agent/broker, and there is every chance that the terms may be in the favor of the seller.
Why Hire An Attorney
Here are some of the reasons why an attorney should be hired:
v The Purchase Contract – It is very important that the real estate attorney goes through the purchase agreement before you sign it. It is his role to explain and make you aware of the legality of each clause of the contract. These things are quite complex, and the attorney ensures that there are no potential complications.
v Title Search – It is important that the seller has a clear record, and what is known as the ‘marketable title’ to the home you intend to purchase. This is accomplished by your attorney through a title search, which includes checking for encumbrances, rights of way, easements, restrictions, and such matters. To check all matters which may affect the property in question, the attorney examines the records of the Registry of Deeds and in some cases, the Registry of Probate of the county in which the home is located.
v The Final Settlement – This is also known as the closing. The seller and his attorney/broker/agent, the mortgage lender’s attorney, and you along with your attorney meet to finalize the transaction. Once everything has been settled, it is now time to execute the closing documents. Among many other documents, the closing documents include:
· The deed of the property
· Discharges of mortgages
· Promissory note and mortgage
· The Truth in Lending Statement - this documents all finance charges
· Survey or mortgage plot plan
· Final accounting - this involves evaluation of property taxes, water bills, etc on a pro-rata basis.
After the final settlement has been effected, the attorney ensures that the title examination is updated; the deed, mortgage, and other miscellaneous documents, such as the Municipal Lien Certificate are recorded in the Registry of Deeds. This is when the title to the property is transferred to you, as the new owner of the property.
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