What Is A Home Inspection Report And What Is Its Role At The Time Of Closing?
The realtor would deal with the home inspection report more than a closing attorney. The closing attorney may inquire with the realtor or the buyer about the home inspection report to ensure that any issues with the inspection have been addressed and resolved before the closing.
There are many times when the seller will want to close without resolving inspection issues, which is certainly their prerogative. As the closing attorney, the conversation has to be had so that we don’t reach the closing table and have the buyer back out of the closing due to the inspection issues not being resolved.
Aside from that, title doesn’t have much to do with inspections or warranties. Those would fall to the realtor.
Who Will Coordinate The Closing Date With Each Party And When Does That Generally Happen During The Point Of Sale Or During The Transaction?
The closing attorney will set a tentative closing date that we hope to meet as soon as we receive the order for the title commitment. When we receive the order, that means that they have sent us the signed contract and we know they’re hiring us for the title services.
Typically, the tentative closing date is set three weeks out. This can be a little bit ambitious, but it does work out sometimes. The closing date will be fluid and can change based on all of the other moving parts of the process.
The only thing that changes with the closing date is that the seller is required for a per diem regarding property taxes until the day of closing. So, that amount will change with everyday that they continue to own the property.
Why Is It So Important That A Closing Attorney Such As Yourself Is Reviewing All Of Those Closing Documents?
It’s important that the closing attorney is reviewing the title commitment so that any issues, if there are any, can be discussed with the future buyer. This way the buyer will know that there were issues, that those issues were resolved, and how those issues were resolved.
The point is to put the buyer’s mind at ease once they’ve purchased and owned the property. You don’t want someone to have buyer’s remorse on a property because it isn’t something that they can just return.
Tell Me About The Step Of Distributing Funds And The Role Of A Closing Attorney. Why Is It Set Up The Way It Is Through A Closing Attorney?
You set up the distribution of funds through a closing attorney because we are held to a higher standard as licensed attorneys. We can act as fiduciaries and, therefore, hold monies in Escrow accounts and report our reconciliations to an authorizing party.
The distributions on a sale will typically go out either on the day of the sale or within 24 hours. On a refinance, distribution goes out in 72 hours from the date of closing.
What Are Some Of The Other Benefits That We Should Be Aware Of As A Buyer Or Seller In Having A Closing Attorney Present? Is A Closing Attorney Required In Florida Real Estate Purchase And Sale Transactions?
A closing attorney isn’t required in Florida real estate purchase and sale transactions. There are many title companies that aren’t attorney-based, which is fine.
One advantage of having a closing attorney is that we’re able to answer any questions or issues ahead of time, regardless of whether they’re hypothetical. We’re held to a higher standard and when people are nervous or confused, they can get peace of mind to know that their best interests are being protected. They can get more experience and understanding of the law and litigation that can arise out of a transaction.
What Errors Or Issues In Documents Might A Closing Attorney Find That A Layperson Or Even A Realtor Would Not?
With deposits and monies held in Escrow prior to the closing, it’s very contract-based. If you have to put certain monies in by certain dates but then you want to cancel the contract, what monies you get back and what monies you don’t get back can be gray areas.
Litigation and arguments can definitely arise out of this. That’s probably where you want your attorney to be on the ball rather than a non-attorney title purchaser. Really, the issues arise when…
- Deals fall apart,
- Closings don’t happen, or
- Contracts are canceled.
Can A Closing Attorney Also Assist In A Transaction That’s For Sale By Owner Versus Using A Realtor? If So, What Benefits Does This Provide In These Situations?
Yes, a closing attorney can provide title services in a transaction that’s for sale by owner.
It’s really just a different point of contract and they may not be as familiar as using a realtor. It’s just going to be a much closer relationship. The realtor is typically a liaison between the closing attorney and the purchaser or seller.
You are essentially cutting out the middleman, which will make for a more intimate relationship that is typically seen. While it’s certainly something that can happen, it’s always recommended to use a realtor. You want to have somebody in the industry who can help you navigate the process because you never know what can happen.
With the guidance of a skilled attorney for Real Estate Law Cases, you can have the peace of mind that comes with knowing that we’ll make it look easy. For more information on Real Estate Law in Florida, an initial consultation is your next best step.