A title company examines public records to identify problems with property titles and prepare documents to close a real estate transaction. However, they do not make contracts or give legal advice.
An attorney is a one-stop shop that provides all these services. When it comes to your real estate transaction, seeking the help of an attorney is crucial to avoid expensive mistakes that could derail the process.
The Right Title Company
When a real estate sale enters the closing phase (the final step of the process), the efficiency and attention to detail of the title company and escrow officer can make all the difference. They are responsible for handling all the paperwork and documentation for one of the most significant purchases most people will ever make.
Title companies search public records for outstanding liens, mortgages, and taxes. They will work to resolve these issues before the sale.
A good title company should also be able to draft and prepare contract addenda, legal documents, and changes to standard papers that address specific circumstances. To make an informed decision, real estate investors should take the time to research and select a reputable title company.
The Right Contract
A title lawyer can assist with the preparation of a property purchase or sale contract. They can also help review and analyze the title commitment, related title documents, and other closing documentation.
They can also address questions or concerns about the contract terms. It can be crucial in residential real estate transactions. They can identify and propose reasonable contract revisions to protect the parties’ legal interests.
Moreover, they can provide valuable research on the property to ensure that it is appropriately zoned for its intended use and that any existing permits have been obtained. Additionally, they can review the title insurance policy and identify any exclusions or exceptions to coverage that may leave gaps in protection for a buyer. Ultimately, a lawyer can save time and money by helping to prevent costly surprises down the road. They can also protect against claims filed against a property after the closing is completed.
The Right Lawyer
Getting legal advice before signing anything is crucial when buying or selling a home. An attorney can help you review the real estate contract, legal description, mortgage loan documents, and closing paperwork. They also can work with the other party’s lawyer to ensure that necessary contingencies like a home inspection, the buyer’s lawyer approval, and the title search are met so the sale can close on time.
An attorney is a one-stop shop for all the issues that must be addressed in a real estate transaction. They have a wide range of experience with the type of property and transaction you are dealing with. They can handle all of the title work and insurance. They also have the expertise to give you legal advice that would stand up in court if something unexpected comes up in your transaction. It is different than what a title company does because they are not held accountable to the law.
The Right Closing
Often, mortgage lenders require that both parties have an attorney oversee the title process. Having an attorney on the team offers a comprehensive approach to closing. It provides the buyer and seller with expert legal advice, which will help avoid pitfalls and facilitate a smooth transaction.
When choosing a title company, determine its internal controls and procedures for protecting funds and balancing escrows. Also, ask what their fees are and where they are located.
Real estate attorneys do not have conflicts of interest like a title company does and can focus on their client’s interests throughout the entire transaction. They have the unique skills and training to spot issues that, if not resolved before closing, can kill the deal or present costly and time-consuming problems for all parties post-closing. They can draft contract addenda and non-standard legal documents to address specific issues that arise. It is something that a title company is typically prohibited from doing, as it is considered the unauthorized practice of law.
