What Does a Real Estate Attorney do in a Real Estate Transaction?
Congratulations! You have just signed a contract to purchase your dream home and now it is time to hire an attorney to help make sure that your dream home doesn’t become someone else’s dream home.
The process of buying a house is foreign to most people that are going through the process. It is especially complicated for a first-time buyer; which is why The Law Office of Aaron J. Vanagaitis, LLC., offers a first-time home buyer meeting in which I break the contract down for clients. This meeting is hosted for clients and is being done virtually during these rapidly changing times. Real Estate transactions typically use two attorneys, one for the buyer, and one for the seller. This blog will explain what a Real Estate Attorney does for the buyer in a transaction.
There are three stages to a Real Estate transaction once a contract is signed. The first stage is known as the Attorney review period which is a 5 business day period following the signing of the contract. During this period, either party can cancel the contract without any repercussions while their attorneys negotiate the final contract that will control the deal. During the Attorney review, an Attorney is not allowed to negotiate the price of the deal, but instead, your attorney will be reviewing your contract with a fine-tooth comb making sure that everything is correct, and not unfairly biased to one party. If your contract calls for an inspection your Attorney will also be requesting the repairs that you would like to have taken care of.
After the Attorney review period is closed your lender becomes the center of attention. Your Attorney will make sure that you are meeting all of your deadlines and verifying that everything is taken care of to receive funding from your lender. Your lender will have an appraisal performed on the property to verify it is worth the amount of money the lender is lending you, and if changes are needed, they will be requested. The period five days before the property is scheduled to close is known as the loan contingency date, which is the day that the lender is required to have everything “Clear to Close” the loan. If the lender needs more time to be ready for closing, your Attorney will request an extension. However, always make sure that your lender has everything they request as soon as possible to avoid any potential delays. Once you have received the “Clear to Close”, we move onto the big day, known as the closing date.
On the morning of your closing date, you will do a final walkthrough of the property with your Realtor, to verify everything that is supposed to be at the house is still there. This is the day you have waited for, but you probably still don’t know what it means. Your closing date is the day where you become the legal homeowner of your dream home. To fully close on your house you need to bring your valid State ID, and certified funds to cover all closing costs. Your Attorney will walk you through a package, known as a closing package, that includes your mortgage, note, loan application, compliance documents, and all other documents that need to be signed to close. Although you may be familiar with what a mortgage is, you probably aren’t aware of the incredibly important details that are written into it. Your Attorney will explain these documents to make sure that you understand all of the important fine details that are within your mortgage. Once all of the documents are signed by you, the title company wires them to the lender for their approval. After the lender approves the documents, they will fund the loan making you a legal homeowner of your dream home!
At The Law Office of Aaron J. Vanagaitis, LLC., making sure you are comfortable with your real estate transaction is my top priority.