IF you wanted an attorney, the time for it would have been before you signed a contract.

I did retain the services of an Attorney for the review of the contract before I signed it.

Well, on the buy side...

If you're unfamiliar with with the language of real estate closing documents having an attorney with you may be a good idea. The closing agent WILL explain them to you briefly. They, basically, say..."As long as you pay you can stay." It's normally the nonmonetary defaults that I find people are baffled by. Also, by the time you get to the 33rd document most people are in a trance & just signing. So, sometimes it's useful to have an attorney present to catch an error, explain a term, point out default clauses, etc.

RESPA (HUD's Real Estate Settlement Procedures Act) was designed as a consumer protection but true to its source is a bureaucratic nightmare & has confused many a homebuyer & seller (and many a lender!). That's the document that will tell you exactly what your loan's costing, etc. If you have questions...that & the securing document will be where they are.

On the sell side...

Not much you have to do. Bring a good novel to read while the buyers are signing the aforementioned 33 documents! Seriously, the settlement sheet is really about all you've got to concern yourself with. There will be adjustments for prepaid taxes & maybe other stuff if you've agreed to any buyer concessions such as paying buyer's closing costs. So, again, if you're unfamiliar with real estate terminology an attorney can be a comforting presence.

The escrow agent, title officer, lender's closer, and/or your Realtors should be able to assist. In today's world, having an attorney has become very common (never used to be but there were only 22 documents 15 years ago).

Personally, I wouldn't spend the money. Do bring a calculator though & READ what they put in front of your face to sign.

Congratulations on your sale & new home.

Tricia

Thanks so much Tricia!

I am competent enough to understand the language on the documents and never have a problem asking questions.

Great advice on the calculator!

Luckily there are not major contingencies.

On the new home we are doing a standard 30 year fixed mortgage with 20% down.

On the sale of the condo we have made the very minor repairs they asked for. So we should be good to go there also.

Thanks again!

My attorney charged me $450 to represent me at the closing of my home when I purchased. He caught 2 errors totaling $800 in my favor! Best $450 I ever spent!

If you can use the attorney your bank is hiring for the closing possibly you can save some $$$. It is always money well spent to protect yourself. I suggested this to my daughter and future son in law when they purchased their home a few months ago and it worked well for them.
Best wishes

dragonfly,

Shame, shame, shame on the banks' attorney. If you'd posted his name I would have called the Bar & filed a complaint!

That is blantant CONFLICT OF INTEREST! What if there would have been some error on the loan docs & down the road something horrible happened & your daughter/son-in-law were about ready to lose their home to foreclosure? The attorney they relied on would be too conflicted to help. He's working for the LENDER!

Glad you made the post here though. Other people might be considering something similar & are now forewarned. There are actually laws about conflicts of interest & this one is blantant.

Tricia

Oops,

dragonfly's post got me so riled I forgot how to spell...

"blatant" not "blantant"

Tricia

xtabi I am competent enough to understand the language on the documents and never have a problem asking questions.

So are we.

Due to the nature of my husband's current business as well as his past life as an investment banker, he reads (and amends) contracts all day long. To say he is very familiar with real estate contracts is an understatement. He is not, however, an attorney. So, do we always use a real estate attorney when buying or selling property? You betchya. Best money you can possibly spend when buying or selling a home.

Use a good real estate attorney.

Sorry I got you riled Tricia. I do appreciate your opinion.
I guess the fact that dd and fiance needed the P&S reviewed and their funds were tight as a young couple buying their first home, this worked for them. I have dealt with this bank for more than 25 years and it still has the same name as it did when I walked through the door the first day. I would never deal with another lender given the choice. If you say it is a conflict of interest then disregard my opinion. This attorney did the title search of the property along with other necessary paperwork for the loan. The title search is a fee they pay not the bank as part of their loan. The attorney also protected dd and her fiance from what could have been a major problem for them with a probate issue regarding the house they were buying. All I can say is it worked for them and I am delighted that at their young age they found a home that fits their budget and also found a way to protect their interest at an afforadable price.

dragonfly,

The attorney doing the title work is also a conlict of interest. I understand about the "good 'ole" boy way of networking & doing business. When I first moved to New England, I was thunderstruck by the many conflict of interest cases I ran into. Then, things got ugly during the last recession/real estate crash in the late '80s & early '90s. Law suits started flying. The "good 'ole boys" learned that what they'd been taught in law school applied to them also. There's still a lot of conflicts in the Northeast but it's much better than it used to be. I don't know where you live...but a conflict is a conflict the world around.

I'm glad it's worked for your daughter (so far). Remember though, that if a title problem or a problem with the loan surfaces in the future...that attorney's first loyalty will be to the bank and not your daughter.

Tricia

Tricia,I know far to well that even attorney's you pay big $$$ for do not always have your best interest in mind. If I never had to deal with another attorney it would suit me just fine. Unfortunately, there is often a need.
I have had several home loans in my years and none of them required a personal attorney. I agree life is different now.
I would never force my opinions on anyone nor am I a negative person. Your so far comment is suggesting there could be a problem. Even the best situations do not always work in your favor. Such is life.
Good Luck xtabi. I hope whatever you decide works for you. Enjoy your new home. I am counting the days until mine is finished.

Well, since I'm married to an attorney I'll ignore your negative comment, dragonfly. And yes, I am trained to watch out for the "what ifs?". As a lender, it's important to always look to the worst case scenario before making a decision. I am not "forcing" my "opinions" on anyone. I am merely stating what is a fact. The scenario you described is a conflict of interest. Today, when the attorneys I know do a favor for someone even though it's a conflict they get a "Conflict Disclosure" statement signed as a CYA.

Tricia

Thanks everyone for your replies. A friend of mine at work has recommended an attorney I am going to go with that specializes in real property.

Anyone know what I should expect during the closing process from them?

They will attend the closing & sit next to you. They will glance over the closing documents looking for errors. They will explain a term or number if you don't understand. That's about it. They SHOULD request the closer to forward a copy of the documents prior to your actual closing so they can review them. Assuming they've done that...any potential errors should have already been caught by your counsel.

Closing documents today are computer generated. Sometimes, there IS a mistake (garbage in - garbage out). Usually, there is not.

They will then shake your hand, congratulate you on your sale and/or new home & leave. It's easy money. Ask your counsel if they will even attend the closing...some don't if they've previously reviewed the docs.

Once in a "blue moon", there will be a surprise at a closing. A buyer or seller will suddently introduce a previously unrequested demand & closing stalls. If that occurs, then counsel must earn his/her money by resolving the issue to your satisfaction.

Or, something like this may happen...

Our last closing went like this:

We closed on our existing home Thursday night at 5:30 p.m. Everything went well. We all exchanged pleasantries & went on our way.

We arrived at our new home's location (out-of-state) later Thursday night. We stayed at an Inn we'd stayed at previously about a dozen times. The owner's knew us & had a beautiful fruit/cheese/wine basket in our room congratulating us on our new home purchase. We were scheduled to close Friday at 9:00 a.m. immediately following our final walk-through with the seller's agent.

Walk-through goes well.

We arrive at closing. Closer has a look on his face that immediately screams, "Houston, we have a problem!"

Our seller had a second mortgage through a hard-money lender (that's a lender that breaks your kneecaps if you don't pay). The lien amount greatly exceeded our seller's net proceeds. The lien holder refused to release. We signed all the paperwork while the seller's counsel tried to resolve the little "issue".

In the meantime, our furniture was on its way to our new home & scheduled to arrive at 1:00 p.m.

Noon arrived & there was no resolution. We had no choice but to phone the moving company & have the truck turn around & head back to their original location. They put the entire truck with our furniture on "ice" over the weekend at a cost of $3,500.

By 5:00 p.m. on Friday there was still no resolution. The seller gave us a written 3-day no-charge lease on the property & we camped out over the weekend...very unhappy since we now had no place to live.

Monday morning - 8:30 a.m. DH goes back to the place of closing. I remain at home in case we close & I can call the movers back. It's about a 2-hour drive for the truck.

DH took control at the closing table & phoned the hard-money lender direct at his home. Much ado transpired over the next 30 minutes. Lots of loud voices, language you wouldn't have wanted your children to hear. Result: the lender agreed to transfer excess debt to another property that the seller owned. Hard money lender issued a release & faxed it to closing around 11:00 a.m. DH phoned me & said, "Honey, fetch the furniture."

It took another 10 days, or so, to get the original release. So, yes things CAN be unpleasant & I was gratful DH is an attorney. Our closer said it was the nastiest residential closing they'd ever done. This type of thing is NOT normal but it CAN happen.

If you are squeemish...it's a good thing to have counsel. In most cases, you won't need it & the money you spend will end up being just a "belt & suspenders" type of thing.

Tricia