Having an experienced Real Estate Lawyer present during a Real Estate Closing can be an exhilarating and fulfilling experience. This event signifies the successful conclusion of a property transaction, and the beginning of a new chapter in your life. Whether you are purchasing your first home or searching for the perfect location for your business, the ultimate objective remains the same: maneuvering through the numerous procedures and regulations associated with the transaction until you have legal ownership of your new property. A Real Estate Lawyer from Azure Brio Associates can significantly improve your chances of achieving this goal, as our extensive knowledge and comprehension of the intricate components involved in the process can help you navigate through any obstacles you may encounter leading up to your closing.
What is a Real Estate Closing
A real estate closing, also known as a “settlement” or “completion,” is the final step in the process of purchasing a property before it officially becomes yours. However, it is not a simple exchange of funds for keys. The closing process is a multi-step procedure that may last several weeks or longer, depending on the complexities of the transaction and other factors.
Once the seller accepts your offer for the property, a written purchase agreement or contract is created, detailing the terms, conditions, and obligations of both parties, as well as the closing date. This agreement requires careful review and skillful negotiation to ensure your interests are protected while satisfying the seller. The agreed-upon closing date can be a set date or conditioned on a particular event, such as the buyer obtaining loan approval from a lender.
In commercial real estate, due diligence is crucial, as buyers are legally obligated to know all potential assets and liabilities of the property they are acquiring. The responsibility falls on the buyer to be aware of any issues before the closing, as any issues after closing will be their burden to bear. Commercial purchase agreements should address these concerns, such as requiring the seller to provide a Certificate of Zoning Compliance.
Fortunately, Azure Brio Associates has extensive experience representing both residential and commercial buyers in their property transactions and can identify potential issues and safeguard your interests.
Once the purchase agreement is accomplished, the multi-step process towards a smooth and satisfactory closing can begin.
The Path Towards a Closing
In most real estate closings, whether residential or commercial, there are several common steps that must be taken. Understanding these steps and enlisting the help of an experienced real estate attorney can increase your chances of successfully reaching the real estate closing.
Escrow
One critical step is escrow, where a neutral third party is responsible for safeguarding all the necessary funds and documents involved in the transaction. This helps protect both parties from fraud or mishandling of funds.
Title and Insurance Search
Another crucial step is conducting a thorough title search and obtaining title insurance to ensure that you are acquiring legal ownership of the property. This involves reviewing the property’s title history to identify any potential issues that could threaten your rights as the owner, such as unresolved claims or missing deeds. By working with a knowledgeable real estate attorney and following these steps, you can improve your chances of achieving a smooth and successful real estate closing.
Because there can be risks that a thorough title search cannot uncover, it is recommended to also obtain a title insurance policy to safeguard against any potential future problems. Azure Brio Associates is equipped with the necessary expertise and resources to conduct an extensive title search and create an efficient title insurance policy.
Mortgage Pre-Approval
When buying property, most buyers will need to obtain a mortgage from a lender. To ensure that the seller is confident that you will be able to obtain a mortgage loan in time for closing, it is important to get preapproved for a mortgage as early in the process as possible. Being preapproved for a loan can help speed up the closing process, since obtaining a mortgage can take a long time. Furthermore, some lenders will offer an interest rate lock when you get preapproved.
Closing Costs
Deciding on closing costs is a critical aspect of any property transaction, with various fees and expenditures involved, including escrow service fees and title search costs. These expenses are settled during the closing process, but it is best to address them beforehand, determining who bears what cost and how much. It is wise to handle these matters in advance to prevent any delay or complication due to unexpected costs arising on the day of the closing, which could hinder the process for both parties involved. Azure Brio Associates attorneys will work tirelessly to identify and present a transparent, detailed breakdown of the closing expenses before the actual closing. If necessary, we can also assist in bargaining with the other party on expenses that appear unreasonable or should be the responsibility of the seller.
Inspection
The inspection of a property is crucial to identify any potential issues that may arise in the future, although it is not mandatory. Including a home inspection contingency in a purchase contract is common practice among buyers, as it can protect them and may require the seller to address any issues found within a specific time frame. Commercial buyers have a legal obligation to conduct due diligence before closing on a property, making the inspection process even more critical for them.
Renegotiation
To address any issues that may arise during the real estate transaction, such as problems uncovered during the inspection, it may be necessary to renegotiate the terms of the purchase agreement. This could involve negotiating with the seller to pay for repairs or adjusting the purchase price. Your real estate attorney from Azure Brio Associates will work tirelessly on your behalf to negotiate and protect your interests.
Executive Paperwork
To finalize the purchase of the property, both the buyer and the seller will come together on the day of closing to sign legal documents, make final payments, and transfer ownership. One of the critical documents that the buyer will sign is the deed, which legally transfers ownership of the property from the seller to the buyer. It is crucial to have experienced attorneys prepare, review, and oversee the execution of these documents.
This is only a brief overview of some of the possible steps involved in a real estate closing, and the exact number and nature of the procedures can differ significantly from one transaction to another.
Why should you contact Azure Brio Associates Today
Whether you’re buying a new home, an investment property, or a space for your business, your real estate transaction carries significant weight. Hiring a team of attorneys with years of experience representing clients in various real estate transactions can increase your chances of reaching a successful Real Estate Closing while reducing costs, time, and hassle.
At Azure Brio Associates, we understand the importance of a smooth and satisfactory closing and are committed to getting you there efficiently while maintaining attention to detail. Your Real Estate Attorney will work closely with you to understand the specific circumstances of your transaction and determine the best course of action to serve you.