The Inestimable Value of an Experienced Real Estate Attorney

Whether you are purchasing or selling residential or commercial property, hiring an experienced attorney can make the difference between a positive, profitable experience and a legal, financial, and emotional disaster. Each type of transaction requires awareness of the most recent laws, scrupulous attention to detail, and a fierce commitment to the client's best interests. This blog addresses the importance of having an experienced attorney in a residential purchase.

In North Carolina, the residential purchase typically begins with the offer to purchase and contract, which lays out the terms and conditions for buying and selling the property. The buyer and seller will often sign the contract before an attorney becomes involved. When the terms of the transaction are more complicated, an attorney may prepare the purchase contract. It is not unusual for an attorney to prepare an addendum to the contract to address a shared driveway or seller's possession after closing, or other concerns. 

After the contract is signed, a licensed North Carolina attorney must handle the purchase process. It is not unusual for the buyer's real estate agent to recommend an attorney to represent the buyer. The attorney's primary duty is to ensure that the seller provides title to the property that is marketable and insurable.

The contract typically provides a due diligence period, a set amount of time for the buyer to inspect the property. During this time the buyer’s attorney will perform a title search and take other steps to determine if the property meets the buyer's requirements. I also recommend that the buyer obtain a surveyor. During the due diligence period, the buyer can terminate the contract for any reason or no reason, without penalty. 

The buyer's attorney also works closely with the lender to see that the loan is ready at the time of the closing. A few days before the closing, the lender will provide a loan package which will include a closing disclosure, a promissory note, a deed of trust, and other documents specific to each lender. 

The closing disclosure lays out the terms and conditions of the transaction (loan amount, interest rate, estimated monthly payments) and provides a detailed breakdown of the closing costs.

Pursuant to the typical contract, the seller is required to provide the deed, a lien waiver, and a 1099-S ("Seller Docs"). Often, the buyer's attorney will prepare the Seller Docs. If the seller retains an attorney, then that attorney may prepare the Seller Docs. 

The buyer's attorney will conduct the closing. It is not necessary for the seller and buyer to be present together at the closing, although sometimes both are present. Either way, the seller will sign the Seller Docs and the settlement statement, and, if a lender is involved, the seller's closing disclosure. The buyer will sign the buyer’s closing disclosure, the settlement statement, the promissory note, deed of trust, and other documents provided by the lender. 

After the closing, the buyer's attorney will submit the closing documents to the lender for approval. After receiving approval to proceed, the attorney will update the title search and then record the deed and deed of trust with the Register of Deeds of the County where the property s located. After recording, the closing attorney will disburse the settlement proceeds to the seller and to the other entities that need to be paid. Not long thereafter, the attorney will see that the final title policy is issued and provided to the buyer and lender.

There are many situations in which my broad experience is beneficial. For example, if a home is being sold by the administrator of an estate or as part of a divorce, additional legal issues will impact the process.       

Since 1973, our firm has represented thousands of parties in real property transactions. We represent buyers, sellers, trusts, estates, and businesses in transactions throughout the State of North Carolina.