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real estate closing attorney danbury ct

Do I Need a Real Estate Closing Attorney to Sell My Home?

Selling a Home in CT? You Need a Real Estate Closing Attorney

If you are looking to sell your home, you may or may not want to hire a real estate agent, but you will definitely want to hire a real estate closing attorney. While the marketing of your home to potential buyers is something you might be able to handle yourself, the services of a seller’s real estate closing attorney are essential to a legally compliant real estate sale.

What does a seller’s real estate closing attorney do?

A seller’s real estate closing attorney provides many services to the Seller that legally legitimize the sale and make it binding, while at the same time protecting the liability and financial interests of their client. A seller’s real estate closing attorney performs the following closing tasks:

  • Reviews Exclusive Right to Sell Agreement and Dual Representation Waiver with real estate agent/broker (if hired early enough);
  • Reviews and assists with Listing and Mandatory Disclosures (once again, if hired early enough);
  • Negotiates with buyer’s attorney and drafts Purchase and Sale Contract;
  • Works to resolve any inspection, appraisal or title issues to meet buyer’s needs;
  • Prepares closing documents such as power of attorney, Deed and affidavits;
  • Obtains payoff statements for outstanding liens or mortgages;
  • Attends the closing with, or on behalf of, the client;
  • Handles cash flow in escrow, receiving purchase funds and making any payments or disbursements; and
  • Secures and records releases for mortgages after closing.

When issues arise in real estate deals it is the attorneys that defuse situations and save deals by coming up with solutions that are acceptable to both parties. A seller’s real estate closing attorney can save a seller of real estate property a lot of stress and worry.


 

If you are looking to sell a house or condo in Connecticut, let us handle your real estate closing matters. We charge flat rate fees on closings, and we offer FREE phone consultations, so you can make sure we are the right attorney for you.

SCHEDULE A CALL WITH OUR REAL ESTATE ATTORNEY

buyers real estate closing attorney

Why Do I Need a Real Estate Closing Attorney to Buy a House in Connecticut?

Buying a House in CT? You will need to hire a Real Estate Closing Attorney

If you are looking to buy a home in Connecticut, you will need the services of a real estate closing attorney. A buyer’s closing attorney’s job is to protect their client legally and financially. This includes handling all of the contracts, clearing title and securing title insurance, and meeting all lender requirements.

What does a buyer’s real estate closing attorney do?

A buyer’s real estate  closing attorney helps coordinate the purchase of the property by making sure all laws are followed, his client is getting the property as promised, and by managing the finances. A buyer’s closing attorney performs the following functions:

  • Review the Exclusive Right to Buy or Sell Agreement and Dual Representation Waiver between the buyer and their real estate agent (if hired early enough);
  • Review preliminary title report Seller ownership issues;
  • Review and negotiate Purchase and Sale Contract with seller’s closing attorney;
  • Review mortgage commitment issued by the mortgage company and any conditions;
  • Order and review the title search to find any liens, mortgages, judgments or other issues;
  • Prepare buyer’s closing documents such as power of attorney;
  • Review seller’s closing documents including Deed;
  • Review loan documents and meet all lender requirements;
  • Attend closing with, or on behalf of, the client;
  • Act as Settlement Agent for the Lender;
  • Handle all funds through escrow and make all necessary payments and disbursements;
  • Provide an accounting of funds to the client; and
  • Record all documents at Town Hall such as Deed, Mortgage and any Power of Attorney.

A buyer’s real estate closing attorney can minimize the stress and anxiety of buying a home by giving you somebody you can turn to with literally any question throughout the process. This is perhaps the biggest benefit.


 

If you are looking to buy a house or condo in Connecticut, let us handle your real estate closing matters. We charge flat rate fees on closings, and we offer FREE phone consultations, so you can make sure we are the right attorney for you.

SCHEDULE A CALL WITH OUR REAL ESTATE ATTORNEY

delays in real estate closings

Hazard Insurance Delays Real Estate Closings Under New TRID Laws

Hazard Insurance may Delay Your Real Estate Closing

Under the new TILA/RESPA Integrated Disclosures (“TRID”) real estate settlement practices, consumers (those taking out a mortgage to buy a home) must receive and acknowledge the Closing Disclosure, a document showing where all the money is going, a minimum of 3 business days before the actual closing can occur. This means that if any dollar amount changes on the Closing Disclosure, and it has to be acknowledged again, the closing will be delayed for at least another 3 days.

How is Hazard Insurance delaying closing?

One of the biggest issue is old custom. Prior to TRID, it was common for hazard insurance quotes to be obtained a day before closing or even the night before closing. This is because previously there was some leeway regarding dollar amounts and time tables, but not anymore.

So, if the the realtor or real estate attorney do not remind the client to get hazard insurance lined up, the closing could be delayed until a quote is received, updated on the Closing Disclosure, received and acknowledged by the client and a new closing date can be arranged between all parties.

Conversely, I have also seen a closing delayed because the hazard insurance quote was obtained TOO EARLY. Due to changes in the purchase price, the appraised value, or issues discovered during inspection or the walk through, the cost of hazard insurance could change. If the insurance salesman or broker does not take the proper steps to keep everybody informed of any such changes delays may occur.


With the change in laws and the addition of stricter requirements and guidelines, it is more important than ever to hire an experienced real estate attorney to handle your closing. Do problems happen? Sure they do. But you want somebody with the experience and the know-how to limit problems, to spot them when they occur, and to resolve them in a quick and painless manner.

If you are looking to buy a house or condo in Connecticut, let us handle your real estate closing matters. We charge flat rate fees on closings, and we offer FREE phone consultations, so you can make sure we are the right attorney for you.

SCHEDULE A CALL WITH OUR REAL ESTATE ATTORNEY

 

buyers real estate closing attorney

Occupancy Affidavit When Buying a House – The What, Why, and So What?

Occupancy Affidavits When Buying a Residential Property

What is an Occupancy Affidavit? Why is it required? What can happen if it’s not honored?

When you buy a residential property, your bank will require you to sign an Occupancy Affidavit or Occupancy Agreement. This document will be signed under oath and notarized at closing.

What is an Occupancy Affidavit? This agreement will represent to your bank (the Lender) that you (the Buyer) will move into the property within the next 30 days, and usually require the Buyer to live there for a certain period of time, for example 1 year. There is no standard occupancy affidavit, and each Lender generates their own agreement, so the exact terms and language will vary from one Lender to the other.

Why Do Lenders Require Occupancy Agreements? The necessity of the occupancy agreement is due to the difference between loan packages for personal residences and investment properties. Residential loan packages come with lower interest rates while investment loan packages have higher interest rates, due to higher risk factors with investment properties that will be rented out. If the Lender is going to be giving the Buyer a personal residence loan package, they want an assurance that they will in fact be living there.

So What? What If the Buyer Does Not Honor the Occupancy Affidavit? Since the Affidavit is signed under oath and notarized, and since its terms are clear or “unambiguous,” it will be fairly easy for the Lender to enforce their rights in court. Failure to honor an occupancy affidavit is considered mortgage fraud. The most likely result is that the Lender, upon discovering a misrepresentation, can immediately call the entire outstanding amount of the mortgage note. There may also be additional civil and criminal penalties. How would the bank find out? New “Risk Management” software can help Lenders use your credit card bureau information (public records) and and tax documents (which you agree to provide as part of any closing) to determine your primary residence and check it against the property you purchased, quickly and easily.

When buying real estate property you should always seek the expertise of an experienced real estate closing attorney. Part of your attorney’s job is to evaluate your goals for the property and make sure you are getting the proper loan package.