Real Estate Attorneys and Title Companies: When to Hire Them
Real estate law is complicated - when to leave it to the professionals?
Whether a house is sold through an agent or FSBO (for sale by owner), every seller pays for a real estate attorney or title company. This is because the closing process of any home purchase requires legal and financial expertise to ensure that all relevant documents are in order and that all parties involved in the transaction are fully protected from potential disputes. A real estate lawyer will make sure that proper contracts, inspections, and deeds are prepared, while a title company will verify ownership of the property before transferring it to the buyer.
The role of a good lawyer for FSBO sellers
When it comes to a real estate sale and purchase decisions, there are many variables to consider: How much should I list my home for? Is now the right time to sell my home, or should I wait another month? What is the best color to paint my walls? White or buff? Here’s a break for you: Don’t just consider hiring an attorney once the closing process begins, hire one right away. You just can’t afford to let some sort of legal snafu ruin your deal. You may need an attorney if your state requires it, but even if it’s not a requirement, you shouldn’t skimp here (an investment of less than $500).
In addition to guiding you through the paperwork, an attorney will ensure that all aspects of the process comply with state law. As part of the transaction, your real estate attorney will also work closely with the title or settlement company and the buyer’s lawyer. It is more likely that your deal will move forward smoothly if your real estate attorney has worked with the title company and the opposing attorney in the past.
Having a professional closer and the buyer’s attorney staring at you at closing with a legal question you aren’t prepared to answer is the last place you want to be. The best way to ensure your interests are represented is by having an experienced advocate on your side.
What to look for when choosing a title insurance company
Ask your attorney for a recommendation of a settlement agent or title company to hire for your closing after you’ve hired an attorney. Consider the company’s reputation on the market and its costs before hiring it. Your best starting point will be a recommendation from a real estate attorney.
Furthermore, real estate customs and state laws differ among states when it comes to title insurance. Get to know your local title business practices and customs from your attorney.
Owner’s title insurance is usually paid for by sellers in most states, in effect providing assurance to purchasers that the home is actually theirs. As part of the seller’s fee, the title company conducts a property search for the new owner and issues the policy. A mortgage lender’s insurance policy is usually paid for by the buyer. The seller has the right to select the title insurer since he is responsible for the upfront cost of the title search.