G & B Real Estate Attorneys

ATTORNEY OF THE SELLER

STEP #1 – Handling THE MODIFICATION CLAUSE

The same “attorney modification clause” caveat that applies to buyers also applies to sellers as well. The seller’s attorney should review a contract before it is signed, but this doesn't always happen. Any proposed modifications may be treated as a “counter offer” and the other party may decline to agree to changes and cancel the deal. See ATTORNEY OF THE BUYER for more information.

STEP #2 – PREPARATIONS TO SELL

In the contract review, a seller’s attorney will make sure that the buyer’s earnest money is sufficient, the buyer’s mortgage terms and time frame to acquire a mortgage are realistic to ensure that the home is not off the market for too long. The attorney will also review the terms of pro-rations, the terms of the various warranties or representations of the seller, and the penalties for default, to be sure that they are all reasonable, clear, and fair.

The seller’s attorney’s hard work begins after the attorney modification period. The attorney will order title insurance, association information and paid assessment letters, and survey (if required by the contract) as well as satisfy any municipal requirements (inspections, transfer stamps, or sewer, water, and septic tests, etc.) that may be necessary before the title company and the county will allow the recordation of a deed.

STEP #3 – PREPARING TITLE COMMITMENT

The “title commitment” is a written commitment to offer title insurance from a title company. The title company will do a search of the county and state records to determine the legal description and tax identification number of the property, who is currently in title to the property and what, if any, impediments to title exist. This is done to ensure that there is not a competing claim on the property. Once the title company returns its title commitment, the seller’s attorney may continue obtaining documentation to satisfy any “exceptions” to title. An exception is an item which may “muddy” the title and prevent the seller from passing “clear” title on to a buyer. Such items may include mortgages, mechanic's liens, building lines and easements, municipal requirements or any number of restrictions contained in past deeds.

STEP #4 – PREPARING THE TRANFER OF TITLE

After satisfying all title exceptions, the attorney will prepare the various documents required to transfer title: a deed, bill of sale, affidavit of title, ALTA statement, closing statement and any other various documents required. These could include a pay proceeds letter, a deceased joint tenancy affidavit, a direction to convey, etc. The seller’s attorney will either have the seller execute the documents in advance of closing or at the closing table. In many cases, sellers do not need to attend the closing.

STEP #5 – THE CLOSING

After gathering, preparing, and reviewing these documents, the actual closing is on the shoulders of the seller’s attorney. The buyer’s attorney will make sure that all documents are properly executed by the seller, answer any questions or concerns of the buyer, and settle any contractual disputes or problems that arise. The buyer’s attorney will be checking the seller’s attorney’s work to determine if it accurately conveys title to the buyer.

A diligent attorney can make the closing a quicker, more efficient, and less painful process for a seller.