When you’re not sure about your real estate transaction or you have questions, an attorney review can help you ensure that you’re being treated fairly in the deal. Still, not every state requires that attorney get involved with closing, so you may not be familiar with having an attorney review the documents prior to closing. If you’re wondering what is attorney review and trying to figure out if you need it, you’re certainly not alone. It’s very important that you know what it can and can’t provide to you as you work your way through a real estate transaction. Most people don’t use an attorney review if they live in a state that doesn’t require it, but there are times when choosing to have an attorney look over the documents can be the right option.
Do you need to hire an attorney?
If your state has attorney review as a requirement, attorneys will be the ones to review and close the real estate deal. In states that don’t have that as a requirement, though, you can still have an attorney review if you want to. That’s exactly what it sounds like, where an attorney reviews the documents for the closing and all the pertinent information, in order to ensure that it’s true and correct. If there are problems, they can get corrected before you get to the closing table. You don’t need to hire an attorney in a state that doesn’t require it, but that doesn’t mean you shouldn’t. Not all buyers do, but you certainly have the right to, and it can give you much more peace of mind than you’ll get without it.
Doesn’t the title company handle everything?
When you’re purchasing a home you may think that all of the steps that actually make up the closing are handled by a title company. In states that don’t require attorneys, that’s generally the case. The lender and the real estate agent provide information to the title company, and from that the company prepares the closing statement and all the documents that have to be signed. That’s a very important step, and one that must not be taken lightly. All names, dates, addresses, facts, and figures need to be correct or there’s a risk that closing will be delayed or may not happen at all. With an attorney review, there’s less risk at closing because a lawyer has also checked everything and looked for discrepancies in any of the closing paperwork.
Why would you want an attorney review?
Not every buyer wants an attorney review. Some see it as another unneeded expense or unnecessarily intrusive. Others may just feel it’s not really required, or that they don’t want to hold up the closing or anger the seller. As long as your state doesn’t require you to have an attorney review, there’s certainly no reason you have to. But you may want to because it can give you peace of mind. Anytime you sign a legally binding document of that magnitude, it’s good to make sure what you’re signing is really what you expect. Without an attorney review, you really don’t have the chance to be sure about anything you’re signing, and that can leave you wondering if you may have made a mistake. An attorney review can help eliminate or reduce those concerns.
What will the lawyer look for?
When you have an attorney review, the lawyer will look for anything that could be a big discrepancy, just as buying the right house is important, so is getting the right deal and loan. It’s important to understand what an attorney review is and how it can affect your real estate transaction. A big part of that is knowing what the lawyer is looking for, so you have some idea of what to expect. Attorneys who review closing documents generally want to be sure that there aren’t issues outside of the normal transaction that they would expect to see. When there are unique pieces of information in the transaction, waivers of rights, and other changes, it can raise red flags that there may be issues that should be addressed and studied more carefully.
What happens if they find something?
It’s possible that an attorney review will lead to a lawyer finding something that they didn’t expect. Small issues can be quickly fixed so that the closing can proceed, but bigger issues may take longer to address. While you don’t want to delay closing, you also don’t want to go to closing with a problematic transaction. Once you sign the papers, there’s no going back on the deal. Since buying a house is such a large purchase, it pays to have an attorney review and make sure everything is right the first time. Then you won’t have problems later on, after you’ve already closed and then discovered that something wasn’t the way it was supposed to be.
Can you back out of a bad deal?
Whether you can back out of a bad deal depends. Most contracts have clauses in them about inspection, stating that you have the right to walk away if you don’t like the results, and that you have a set number of days in which the inspection has to be completed. You can request that the contract have the same information for attorney review, but the seller may not agree to it. In states where review by attorneys isn’t common, trying to back out of a contract on that basis may be more difficult.
2 Point Highlight
It’s important to understand what an attorney review is and how it can affect your real estate transaction.
When you’re not sure about your real estate transaction or you have questions, an attorney review can help you ensure that you’re being treated fairly in the deal.
