Things to Consider when buying a Home

Typical Home Purchase Procedure

Estimating Your Closing Costs

Checklist for moving

The Attorney

The Attorney's Role in Buying a Home

The purchase of a home is often the largest financial transaction of our lifetime. In most instances, the purchase is actually two separate transactions: the first is the actual purchase between the buyer and the seller, and the second is the mortgage between the buyer and the lending institution to finance the purchase. Each transaction involves legal contracts, which have significant long-term consequences. Therefore, having competent, experienced legal counsel is most important.

When To Contact an Attorney

As a general rule, the sooner the better. Many problems with real estate transactions can be avoided by a thorough discussion with your attorney and the attorney's understanding of your particular situation and the type of transaction you are considering. For example, moving from an apartment to a house may involve considerations of your obligations under an existing lease, or the purchase of a multi-family house may give rise to potential difficulties with the rights of existing tenants. Each transaction is individual and unique, and early consideration may help avoid problems before they arise.

Legal Fees

Like most fees, legal fees for real estate transactions are based upon the service rendered and time expended, and your attorney will be happy the discuss them with you. If you are obtaining a mortgage, the bank or lending institution will incur legal expenses which are passed on to you as part of the mortgage closing costs. In many instances the bank may permit your attorney to perform some or all of the services required in connection with the mortgage, which may result in direct savings to you. The experienced real estate attorney will know in advance what will be required and will be able to tell you in advance what your fee will be.

What the Attorney Does

In addition to the matters previously mentioned, your attorney will be responsible for some or all of the following:

1. Determination and computation of the usual adjustments between buyer and seller, such as property taxes, fuel, water and any other matters peculiar to your transactions.

2. Determination of the sufficiency of title to your property and adequacy if the transfer documents, review and explanation of any title encumbrances which may accompany your ownership, such as easements for utility services and sewers.

3. Review and explanation to you of the financing documents, including the mortgage note and deed, as well as any other requirements imposed by the lending institution, and preparation of necessary documents.

4. Supervision of a proper recording of your title and financing documents in the municipal land records. Your attorney's job is to protect you and your legal interests. Your attorney will see that all the necessary legal requirements have been met to insure you receive good title to your new home and that you understand the details of the financial transaction involved.