Buying or selling a home is one of the most important financial decisions you can make, and ensuring your transaction is properly papered is vital. Real estate attorneys are licensed to practice real estate law and can advise homeowners and buyers during the process. However, if you’re purchasing a home in New York City, you may also need a closing attorney for the transaction. This article outlines the difference between these two professionals and the specific roles they play in the transaction.
When you’re buying a home, your real estate attorney will draft and review the contract of sale and other documents related to the purchase, including addendums and disclosures. The attorney will also conduct a title search and obtain necessary documentation from the seller. They will also work with your mortgage lender to help secure the loan. Additionally, a real estate attorney can help with a variety of other legal issues that may arise during the process, such as boundary disputes, environmental concerns and the transfer tax.
In most areas of the country, including New York, it’s common for both the buyer and seller to retain their own real estate attorney, but the closing attorney is a neutral party in the transaction. They represent the interests of all parties in the sale, including the buyer and seller. The role of a closing attorney includes preparing the final settlement statement that details all charges from both sides, such as agent commissions, attorney fees, title insurance fees, underwriting fee, taxes, loan discount points and more. Additionally, they communicate with all parties involved in the closing to confirm a date, time and location for the closing.
They will also assist with the final walk-thru to verify the property is delivered as described in the contract. They can also conduct an appraisal, if needed, and prepare the transfer tax documents. They will also facilitate the closing, either in person or by eClosing, which is sometimes an option for residential real estate transactions.
At the closing, the closing attorney will present their “opinion of title” to the title company, which is used as a basis for the buyer’s title insurance policy. They will also record and file the transferred documents and handle any record-keeping activities. In addition, they can work with lenders to help ensure the sale proceeds are sufficient to cover the loan amount and closing costs.
Whether you are a buyer or seller in NYC, it is crucial to hire a qualified closing attorney early on. Many individuals wait until they are close to signing a contract to enlist the services of an attorney, and this can lead to unfavorable contract terms that could ultimately derail the transaction. Moreover, if you decide to skip hiring an attorney, it’s possible that your mortgage lender will require you to do so, which can lead to significant complications down the road.
Purchasing a home or selling a commercial property in New York requires navigating complex legal considerations. A closing attorney can guide you through the transaction by explaining legal terms, contracts, and documents to ensure that your interests are protected. Having an attorney by your side during a real estate transaction is essential, especially in a city like New York where the market is highly competitive and laws are constantly changing.
When to Hire a Closing Attorney in New York
The right attorney can make or break the closing process for your real estate transaction. A qualified and experienced lawyer can help you understand complicated legal terms, contracts, and documents, as well as provide insight and advice that aligns with your specific needs and goals. They are familiar with the laws and regulations specific to New York and can quickly identify potential issues and loopholes.
A good closing attorney can save you a lot of time and money in the long run by protecting your interests throughout the entire closing process. They will diligently review all relevant paperwork to ensure that they adhere to New York’s strict legal requirements, as well as the terms of your contract. This includes reviewing the purchase agreement, title insurance policies, loan documents, and more. They will also manage the escrow account and work closely with all parties to ensure that financial obligations are met, including loan payoffs, taxes, and closing costs.
Buyers can benefit from the legal skills and guidance of a closing attorney as well. They can order a title report to see if there are any problems that the seller must resolve before closing, such as liens or violations. They can also negotiate terms and conditions of a sale based on inspection results, title report findings, and lender requirements. In addition, a buyer’s attorney can help them obtain a mortgage by providing information and documents required by lenders.
Finally, a seller’s attorney can help them close on their home or business by ensuring that all relevant paperwork is completed and filed correctly. They can even negotiate with banks to reduce their closing costs and provide a smoother transaction.
Ultimately, it is typically best to hire a closing attorney early on in the process. However, if you are already in the middle of negotiations for a real estate transaction, it is still important to consult with an attorney to ensure that your rights and interests are protected.
New York real estate attorneys specialize in a variety of residential and commercial transactions. They understand the ins and outs of negotiating, drafting, and reviewing real estate documentation, and they are up-to-date with the latest legal changes. They can quickly identify issues and provide insight that could significantly impact your transaction, whether you are a buyer or seller. They can also negotiate more effectively on your behalf and protect your interests. They can even file a lawsuit on your behalf if necessary. If you are looking for a knowledgeable, experienced, and dedicated real estate attorney in New York, contact our office today.
The real estate landscape is complex, and closing attorney play an invaluable role in ensuring the safe, legal transfer of property ownership. They are highly experienced in real estate law and have deep knowledge of the bustling Manhattan real estate market. Their vast responsibilities include mitigating legal risks, conducting due diligence, and facilitating a successful real estate closing process.
The role of real estate lawyers is unique and valuable to both sellers and buyers. Buyers are often unaware of what they’re signing, and a good lawyer can help them understand the terms in a contract, such as what the purchase price means for their tax liability. The attorney can also be instrumental in negotiating the best deal, and can be an invaluable resource for ensuring that contracts are clear and accurate.
A closing attorney can also save you money by making sure that you’re getting a fair deal. They can make sure that the terms in a contract accurately reflect your intentions and safeguard your rights. They can also help you avoid pitfalls, such as a mistake on the title or zoning documentation that could cost you dearly down the road.
In addition, closing attorney are adept at identifying potential legal risks and addressing them before they become problems. They conduct thorough due diligence to review property titles, surveys, and inspection reports to identify any issues. They can then work to resolve these issues, preventing a delay in the closing or even a lawsuit down the road.
Local custom in New York City is for both buyers and sellers to have their own attorney represent them in a transaction, so it’s rare that you would find someone purchasing property without an attorney. However, there are circumstances in which it may be advantageous to forego a lawyer, especially if you have extensive experience with real estate transactions and can handle the legal aspect of a transaction on your own.
One of the most important roles of a closing attorney is attending the closing meeting to review all of the key documents with you and answer any questions or concerns that you might have. They can also review the final closing statement to ensure that all of the financial calculations are correct.
Whether you’re buying or selling a home or investment property, a closing attorney is essential to protect your interests and facilitate a smooth, legal transition of ownership. If you have any questions about the real estate closing process, contact Avenue Law Firm today to speak with one of our experienced Manhattan attorneys. We can help you get the answers you need and provide additional legal advice and alternative options as necessary. We look forward to hearing from you!
Avenue Law Firm
360 Madison Ave, 9th Floor, New York, NY 10017
(212) 729-4090