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Role of a Real Estate Attorney During The Closing Process

Experienced Residential Real Estate Attorney in South Naperville and Oswego

Real Estate Purchase Agreement 6.1 Attorney in Illinois

The role of a real estate attorney is important in Illinois. Generally, there are four major roles of service providers during the real estate closing process. These four (4) real estate service providers are the following:

  • Realtor
  • Mortgage Broker or Mortgage Lender
  • Home Inspector
  • Real Estate Attorney

Realtor or Real Estate Agent

Naperville Real Estate Attorney to work with local Realtors

Experienced Naperville and Aurora Residential Real Estate Attorney

The role of the realtor is like a quarterback. First, the realtor listens and guides the prospective home owners to determine their wants, needs, budget and motivation. A good real estate agent or realtor will assist the prospective buyers narrow their targets and focus their home buying experience or assist the sellers of real estate determine a seller’s price on identifying the comparable market values in the areas of a home like the sellers and giving advice on how to stage the home (and sell it). Thus, the first goal of a realtor is to find prospective homes to purchase or assist sellers in determining their sales price and best methods for showcasing their home.

The second purpose of a realtor or real estate agent is to negotiate the real estate purchase agreement. In Illinois, the real estate purchase agreement is also known as the Multi-Board Residential Real Estate Contract 6.1. The Multi-Board Residential Real Estate Contract 6.1 addresses a variety of issues including but not limited to the following:

  • Description of the Real Estate
  • Purchase Price
  • Earnest Money Deposited
  • Fixtures and Personal property at no additional cost
  • Closing Date
  • Possession
  • Mortgage Contingency
  • Statutory Disclosures
  • Prorations
  • Attorney Review
  • Homeowner Insurance
  • Real Estate Deed
  • Title
  • Home Warranty
  • Financing or Mortgage Contingencies
  • Parties Information

The above-information is included in the Multi-Board Real Estate contract. Thus, the realtors negotiate with one another on offer and acceptance and purchase price information. After the realtors have negotiated, the real estate purchase agreement. The real estate attorney’s review the real estate purchase agreement and make recommended changes during the attorney-review period. Generally, the attorney review period is a period of five (5) business days.

The third role of the realtor or real estate agent is to assist with the closing process. In many cases, the realtor will recommend a home inspector, whose purpose is to examine the seller’s house to determine the major and small issues that exist with that property. A good home inspector will provide a detailed and thorough written report, which the realtor, prospective home owners, and attorneys will review to determine whether an appropriate credit is warranted for major problems that the home inspection report has detailed. Generally, the realtors for both the buyer and seller will coordinate with one another on when the real estate property should be available for a home inspection. Hence, the realtor or real estate agent makes sure the home inspection is timely and the buyer or seller’s attorney meets the home inspection deadlines as outlined in the real estate purchase agreement.

Residential Real Estate Attorney and Home Inspection Reports

Home Inspection Reports in Naperville, Bolingbrook, Oswego, and Aurora, Illinois

The buyer’s real estate attorney generally reviews the home inspection report and talks with his or her clients to determine their specific demands or needs. Most home inspectors will summarize the major problems associated with the prospective home during their home inspection report. After this is completed, the buyer’s attorney will send the seller’s attorney a letter asking for certain repairs as highlighted in the home inspection report to be repaired. In many instances, the buyers will end up with a real estate closing credit to repair the questionable items. Again, the negotiation of the home inspection period generally is between the seller’s attorney and the buyer’s attorney.

The buyer’s mortgage broker or banker helps advise the prospective home owners on their financing options including assistance with the loan application process and the specific documents required for underwriting. The purpose of underwriting is to identify the documents needed by the prospective buyers to warrant financing by the mortgage company. Thus, the role of the mortgage broker is to assist the prospective home owners with a smooth real estate closing process by the closing deadline. The role of the realtor is to work with the real estate attorney and mortgage broker to assure that from the application deadlines are met including the clear to close deadline is met. The buyer’s attorney and seller’s attorney make sure that the prospective home owners have met their deadlines and the appropriate mortgage contingency deadlines are met and extended as necessary.

For example, let us assume that Joe and Sue Smith are purchasing a home and their real estate purchase agreement requires their written evidence from the Buyer’s licensed lending institution confirming that Buyer has provided as “Intent to Proceed”. Secondly, a buyer also must provide at a specific deadline, written evidence from the Buyer’s lender of a written mortgage commitment. If these two deadlines are not met, the Seller’s attorney and Sellers have the right (but not the obligation) to terminate the real estate purchase agreement. Thus, the role of buyer’s real estate attorney and seller’s real estate attorney are to negotiate their mortgage contingency deadlines.

Experienced Seller’s Residential Real Estate Attorneys

Seller’s Real Estate Lawyer and Purchase Attorneys in Naperville, Oswego & Aurora

The next step is the closing process. At closing, the Seller’s real estate attorney provides the following documents:

  • A Warranty DeedWarranty Deed warranting good title and title insurance
  • Affidavit of Title warranting that the sellers have good title and no purchase or services have been used that have not been paid for.
  • Bill of Sale transferring personal property identified in the real estate purchase agreement to the buyer(s)
  • Survey and Legal Description showing that the sellers own the property and have good title. Essentially, the buyers want to know that the sellers have a legal right to sell the property that the buyers expect to purchase.
  • Payoff letters from appropriate mortgage companies showing the total balance to be paid by the sellers at real estate closing
  • Condo and Homeowner’s letters informing the buyers of the homeowner’s association fees and a description of what fees (if any) are owed at closing
  • Real Estate Transfer Tax Documents are necessary to show the appropriate local, state and county taxes required to be paid at closing for the purchase of said real estate.

Powers of Attorneys for Real Estate Closings

Seller’s Real Estate Attorneys and Power of Attorneys

Generally, most seller’s real estate attorneys will have a power of attorney prepared for the sellers to avoid the sellers having to be present at real estate closing. The sellers also will generally pre-sign the real estate documents prior to real estate closing as well. Most of the important legal work happens for the buyers at closing. The buyers must sign a variety of lender and title insurance documents at closing.

In closing, real estate attorneys, realtors, home inspectors, and mortgage brokers are vital to the real estate closing process. Sean Robertson and Robertson Legal Group, LLC work closely with all of the key team members to assist its’ clients with a smooth and experienced real estate closing process.

Local Naperville, Romeoville, Bolingbrook, Oswego, and Yorkville Real Estate Lawyer

Experienced Residential Real Estate Attorney in DuPage and Kendall Counties

Sean Robertson resides in Yorkville, Illinois in Kendall County and has an office in South Naperville, Illinois. Sean Robertson has over 13 years of legal experience in real estate, estate planning, corporate, and residential real estate law. Sean Robertson has an office in South Naperville, Illinois near Oswego, Bolingbrook, Romeoville, Yorkville, Aurora, Naperville, Joliet, Crest Hill, Lisle, and Wheaton among other places in Illinois. Sean Robertson is passionate about real estate and eager to assist his clients with the real estate closing process. Sean Robertson may be reached at 630-780-1034 or through our online contact form.

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