It is really important to consider the help of a real estate closing lawyer, because as complicated and challenging as real estate transactions can be, there is no part of purchasing or selling a property that is as complex as the closing process. With few exceptions, closing the contract on a real estate deal is often the most stressful because of the sheer volume of unforeseen circumstances, situations, and surprises that have the potential of derailing the entire process.
What Exactly Is a Real Estate Closing?
In short, a closing a real estate deal is about transferring ownership of a property from the seller to the buyer. Most people associate the real estate closing process with a ton of paperwork. That assessment is not wrong, but there is obviously a lot of details behind all those closing papers the average property buyer and seller aren’t typically familiar with. Signing a stack of legal documents can be intimidating and while there is no way to cover all the details involved in closing a real estate transaction in a single article, here are a few of the details an average real estate closing covers:
- Financial Finalization – The buyer pays the agreed-upon fees, closing costs, and listing price of the property.
- Deed Transfer – The seller will authorize the transfer of the property deed to the buyer as well as all the keys to the structures on the property, if applicable.
- Title Registration – The title is registered within the appropriate government office by the title company.
- Closing Escrow – Once all of the paperwork has been signed and the financial obligations met, an escrow officer will transfer funds from the escrow account to the appropriate parties and close the account.
Again, this list is just a sampling of the complexities associated with the closing process. That is why legal real estate representation is a necessity in order to successfully close a real estate transaction with your sanity and your finances intact.
What about all those closing costs?
There are a lot of unique services required throughout the real estate purchasing process and all of those services cost money. Rather than have the contracted parties pay for those services each time they are utilized, most of these service fees are rolled into a general ‘closing cost’ amount. A few of those closing cost service fees include:
- House and/or property appraisal
- Property surveying
- House or building inspections
- Credit reporting
Closing cost amounts are typically factored as a percentage of the loan amount. While this percentage varies depending on which state you’re purchasing property in, the typical closing cost rate ranges between 3% to 5% of the loan amount. Unless otherwise stipulated and agreed upon in the contract, the buyer will usually pay these closing costs. It should be noted that all the closing cost fees will be detailed in a report put together by a ‘closing agent’. However, it is important to know what fees and charges make up these closing costs before the paperwork is signed. That is why experienced legal real estate representation is needed throughout this process and a real estate closing attorney can make a huge difference.
How about Closing On Commercial Property?
As you might expect, commercial property transactions can be even more complicated than residential property purchases. Commercial real estate laws have plenty of provisions and variables that you won’t find in a residential transaction. For example:
- Multiple Contracted Parties – Commercial real estate ventures often have more than one party involved in the transaction which can often produce multiple contracts
- Zoning Laws – Purchasing commercial property means extra paperwork and attention paid to the zoning laws in the area to make sure the buyers’ plans for the property are legally allowed.
- Complex Escrow Rules – Because most commercial real estate ventures involve much larger sums of money than residential, there are a lot of escrow rules and regulations that residential transactions aren’t held by.
The complex nature of commercial real estate transactions makes it imperative that you have proper legal representation. Without it, not only could you lose money, but you could easily cross legal lines that come with potentially hefty financial and punitive punishments.
The smooth transfer of property from seller to buyer requires the experience, knowledge and professional representation of real estate closing lawyer. Shawn Bolger Ltd. is fully equipped to not only represent your property sale or purchasing interests with their 30+ years of real estate brokerage and law experience, we also have a team of real estate legal experts fully prepared to put our wealth of experience to work for you. So, give the Shawn Bolger Law Firm a call at 847-584-1800 and schedule your free consultation today.