During a real estate closing, the singular person supposed to be the most proactive is the lawyer. From leading the negotiations to coordinating between the two parties, and everything in between must be done by the real estate lawyer. In short, having a real estate attorney at the time of closing is the most prudent decision one can make. The benefits of having a lawyer present at a real estate closing far outweigh any negatives; in fact, there aren’t any downsides to having a lawyer present. With all of this said, in this blog post, we’ll take you through the benefits of hiring a real estate lawyer during closing.
Now before we get into this, let us ask you this: have you ever heard of a big real estate company or a group operating without a competent team of real estate lawyers? No. That is because real estate lawyers bring a lot of utility and benefits; the roles that a real estate lawyer will play during the closing stages of a real estate deal are many and can make the difference in a deal concluding smoothly and another one not concluding at all.
Let’s first look at what a real estate lawyer is, and then we’ll move on to why hiring a real estate lawyer is so imperative during closing.
Real Estate Lawyers: Who Are They?
A real estate lawyer is a legal professional well-versed in all matters related to the world of real estate. Whether its tenancy laws, real estate taxation matters or general laws and regulations around the juggernaut that is the real estate sector, a real estate lawyer knows and masters them all. They are supposed to provide sound legal advice to both corporations and individuals, allowing both of them to ensure that their legal rights are served and protected. A real estate lawyer is also responsible for a myriad of things during closing, which will be discussed below.
Why Is A Real Estate Lawyer Crucial During Closing?
The answer for this is simple: real estate lawyers provide many benefits during closing. Aside from the fact that throughout the process of a real estate deal, a real estate lawyer is going to be the most important person; from looking into all the details and ensuring everything runs smoothly, the better lawyer you have, the better and quicker you will be able to close the deal. The roles a real estate lawyer plays during closing are what make a real estate lawyer an absolute must-have. Let’s look at the many roles that real estate lawyers play to understand their importance during closing.
Real Estate Lawyers: What Roles Do They Play During Closing?
From an advisor to the person responsible for disbursing the funds, the roles that real estate lawyers play during the closing phase of a real estate deal are crucial, which is what makes the lawyer themselves the most important person to have during closing. Here is a quick rundown of the roles real estate lawyers play during closing that makes them imperative.
Advisor
The first and foremost role of a real estate lawyer during closing will be that of an advisor. While the real estate lawyer is supposed to advise their client throughout the process of the deal, during closing, advising is especially critical, since the deal is in its final phases, and everything needs to proceed as smoothly as possible. A real estate lawyer will advise on a range of things: everything from pricing, negotiations to the legality of the matter and the potential fallout (if any) comes within the ambit of the real estate lawyer. Expect a clear-headed approach to the deal during its closing when you have a real estate lawyer on hand.
Vetting Authority
The particulars and details of deals and business processes may change over time, and with a process like closing, the details always make the difference. By that, we mean that the more thorough and closely you have understood the details, the more likely you are to have an edge during negotiations or during the closing of the deal. That is another one of the roles of a real estate lawyer as a vetting authority who makes sure that all the details line up nicely and are in accordance with any legal requirements or requisites that the state or province may have. Also included in federal regulations, the real estate lawyer during closing will ensure that everything lines up perfectly.
To Ensure Legal, Financial Interests
Another role, this time an important one, is the role that a real estate lawyer plays during closing: ensuring the legal and financial interests of the party that they are representing. This is imperative, because the primary responsibility of a lawyer, above all else, is ensuring that their client gets the most out of the deal. Ensuring that means that the real estate lawyer will have to work towards securing the legal and financial interests of the client. Legal interests mean ensuring that the deal is legitimate and does not put the client in any future legal war over specific details. Financial interests mean that not only is the deal economically feasible, but the negotiation part too; dealing with the other party on behalf of the client to secure something extra. All of that falls in the domain of the real estate lawyer, and that will shine through the most during the closing.
Prepare Documentation, Execute Title Search
Specifically for the closing of a real estate deal, the real estate lawyer will do both: prepare documentation that concludes the deal and execute a title search. Paperwork is part of the due diligence that you get when you have a real estate lawyer by your side, and ensuring that not only is the paperwork correct, but error-free and encompasses all the relevant details is the responsibility of the real estate lawyer. Executing a title search means that you conduct checks on the public record of the property and whether any outstanding dues exist against it. Again, part of the responsibility of the real estate lawyer prior to finalizing the closing part of the deal.
Fund Disbursement
The final responsibility and role that the real estate lawyer plays in the closing part of the deal is the disbursement of the funds necessary for the transaction. This is handled by the lawyer to ensure it is done in accordance with the laws of the land, whether they be federal or at the provincial level. Having the transaction done through a real estate lawyer means that not only will the funds be disbursed properly but will be done strategically should there be a certain tax in place that can be avoided. Since a real estate lawyer is very well-versed in matters related to taxation as well as real estate laws, you can be sure that even the process of fund disbursement is beneficial to you.
Dharsi Law
Your real estate deal will only go as good as your real estate lawyer is. Having a mediocre lawyer and expecting wonders out of them is not prudent at all. Having Dharsi Law at your side, this is where things get better. Our primary aim is to ensure your legal and financial rights, and whether its closing, negotiating or doing due diligence, with Dharsi Law, expect nothing short of perfection. We know the law, and we know how your legal and financial interests can be protected by it. Dharsi Law: we are your partners for success in the real estate sector!
