Escrow takes the accepted purchase agreement between you and the seller, and ensures that each party does exactly what the contract says before the closing takes place. What the Closing Attorney Does (AND DOES NOT DO).. First, let’s discuss WHAT THEY DO.
A closing attorney is defined as “a disinterested third party to the transaction,” meaning they are impartial and serve the transaction’s best interests. Their role is to ensure that all agreements between the buyer and the seller are fulfilled before any funds are exchanged or property ownership is transferred.
To initiate the process, the closing attorney will prepare closing instructions for both parties to sign. These instructions essentially reiterate the terms of the purchase contract. From there, they will receive and securely hold the buyer’s earnest money, request specific disclosures, and obtain payoffs for any existing loans held by the sellers against the property. They will also order the preliminary title (or ownership) report, which reveals any potential issues that could affect clear title to the property. As the transaction nears completion, they will arrange for the buyer’s homeowners insurance policy and assist in the execution and notarization of loan documents. Additionally, they will prepare the Grant Deed and Deed of Trust for recording.
Here are a few things THEY DO NOT DO
The closing attorney, and their team, do not provide official advice on the transaction. While they may offer friendly opinions in response to questions from one or both parties, they will typically refer you back to your respective real estate agents.
Their primary role in the transaction is to facilitate the collection of all required documents and information related to the agreed-upon terms. For example, while they may order the new homeowners insurance policy for the buyers, they will not make recommendations regarding which insurance company to use or the type of coverage to obtain. They also do not provide guidance on the type of financing the buyer should pursue or advise the seller on matters related to their home’s condition or current loan payoffs. Their primary function is to gather all necessary documentation to ensure that both parties fulfill their contractual obligations before the transaction can be completed.
Who Pays FOR CLOSING ATTORNEY SERVICES?
Typically, the buyers cover the bulk of the closing attorneys fee, unless the contract specifies otherwise. The closing attorney’s fee is one component of the standard closing costs associated with the transaction, which includes various other fees and charges. Whether you are the buyer or the seller, the closing attorney will usually provide an estimate of your total closing costs. These costs will vary for each party, as the buyer will incur new loan-related fees, while the seller may be charged fees by their existing lender to determine their loan payoff amounts. Additionally, it’s common for the seller to cover real estate commissions, although all aspects of a real estate transaction are negotiable. Keep in mind that if the expected timelines change, some of the closing costs may need to be adjusted accordingly.
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Escrow takes the accepted purchase agreement between you and the seller, and ensures that each party does exactly what the contract says before the closing takes place. What the Closing Attorney Does (AND DOES NOT DO).. First, let’s discuss WHAT THEY DO.
A closing attorney is defined as “a disinterested third party to the transaction,” meaning they are impartial and serve the transaction’s best interests. Their role is to ensure that all agreements between the buyer and the seller are fulfilled before any funds are exchanged or property ownership is transferred.
To initiate the process, the closing attorney will prepare closing instructions for both parties to sign. These instructions essentially reiterate the terms of the purchase contract. From there, they will receive and securely hold the buyer’s earnest money, request specific disclosures, and obtain payoffs for any existing loans held by the sellers against the property. They will also order the preliminary title (or ownership) report, which reveals any potential issues that could affect clear title to the property. As the transaction nears completion, they will arrange for the buyer’s homeowners insurance policy and assist in the execution and notarization of loan documents. Additionally, they will prepare the Grant Deed and Deed of Trust for recording.
Here are a few things THEY DO NOT DO
The closing attorney, and their team, do not provide official advice on the transaction. While they may offer friendly opinions in response to questions from one or both parties, they will typically refer you back to your respective real estate agents.
Their primary role in the transaction is to facilitate the collection of all required documents and information related to the agreed-upon terms. For example, while they may order the new homeowners insurance policy for the buyers, they will not make recommendations regarding which insurance company to use or the type of coverage to obtain. They also do not provide guidance on the type of financing the buyer should pursue or advise the seller on matters related to their home’s condition or current loan payoffs. Their primary function is to gather all necessary documentation to ensure that both parties fulfill their contractual obligations before the transaction can be completed.
Who Pays FOR CLOSING ATTORNEY SERVICES?
Typically, the buyers cover the bulk of the closing attorneys fee, unless the contract specifies otherwise. The closing attorney’s fee is one component of the standard closing costs associated with the transaction, which includes various other fees and charges. Whether you are the buyer or the seller, the closing attorney will usually provide an estimate of your total closing costs. These costs will vary for each party, as the buyer will incur new loan-related fees, while the seller may be charged fees by their existing lender to determine their loan payoff amounts. Additionally, it’s common for the seller to cover real estate commissions, although all aspects of a real estate transaction are negotiable. Keep in mind that if the expected timelines change, some of the closing costs may need to be adjusted accordingly.
