FAQs About Your Real Estate Transaction

[Links To Sections Below:]

Why is an attorney is beneficial for your deal?
What are the steps that lead to a closing?
What happens at a closing?
Who pays what?
What should I look for during a walk-through of the property I am about to buy?

Why is an attorney is beneficial for your deal?

Clients sometimes ask me whether they need a lawyer for their closing, especially if it seems to be a simple, uncomplicated transaction. My answer is, “always!” (And not just because I am a lawyer.)

In my years practicing real estate law, I have seen numerous cases of people who skipped on the attorney, then contacted me afterward when they realized some aspect of the deal wasn’t in their favor. Had I been onboard early, I would have looked out for this client’s interest. But late in the game, after a contract is signed and agreements made, there is sometimes not much I can do.

A Florida real estate attorney is the only member of your home-buying or -selling team qualified to give you legal advice. Smart clients contact me before they even sign the contract (or they write “subject to my attorney’s review within three business days” on the bottom, then have me look at it), so I can point out parts of the deal they may not even know they are agreeing to.

Plus, if I issue you title insurance, you won’t even be paying more than a title company to have me on board. Yet a title company doesn’t represent your interests in the transaction; I do. And since I am up to date in current Florida real estate law, I may be able to alert you to potential issues with your deal. For example, you may not realize there are various ways you can structure who will pay any homeowners association or condo association special assessments that are issued after the contract is signed (a pressing issue with these active hurricane seasons). If you are the seller, it is in your best interest to be responsible for special assessments only until the contract is signed; if you are the buyer, you would rather have the seller be responsible until closing.

My office performs the same duties as a title company (obtain a title search; evaluate the status of the title; remedy any title defects; deal with all banks, city agencies, associations and the like; prepare closing statements and other closing documents; facilitate at the closing). But in addition, I am able to review your contract (before signing) and ensure all provisions are in your best interest; inform you of your legal rights and obligations; represent you should any problems or issues arise before closing; and be available to answer any lingering legal questions after you have closed.

Even if a title company is handling the closing documents, it is beneficial to have an attorney review the documents and represent your interests, whether you are a buyer or a seller. I charge a modest, reasonable fee for such a service.

What are the steps that lead to a closing?

Once you sign the deal, you’re on your way to buying or selling a home. However, several steps must occur for this transaction to be completed.

They are:

Closing attorney (or title company) contacts seller’s current mortgage(s) to get package for paying off loan.
If the deal is for a condo, approval of new buyer must be requested and received; maintenance payments must be current (or back payments included in the closing figures).
Attorney (or title company) conducts a title search of the property, checking to be sure there are no liens or other title problems before the sale; title insurance protecting the buyer from potential title problems is obtained.
If property is a house, a survey of boundaries is conducted
Roof, termite and general inspection is conducted; (depending on the terms of the contract) problems detected must be fixed by seller before closing.
Buyer obtains hazard (and if necessary, flood) insurance prior to closing.
Attorney (or title company) prepares documents for the sale, including the deed, bill of sale, affidavits and other necessary papers. Attorney calculates prorated payments of mortgage, taxes, etc. for the date of sale.
Just before closing, buyer conducts a “walk-through” of the property to be sure any problems detected during the inspection have been corrected.
On the day of closing, buyer brings required funds in a cashier’s check. Buyer and seller sign required papers.
The sale is complete. (Congratulations!)

What happens at a closing?

The closing is the final step before you buy or sell your home. At the closing, all parties review and sign documents related to the mortgage loan and purchase. Many of these documents, especially the important HUD statement, which details all the fees, costs and charges, are distributed in advance of the closing, so all parties should be familiar with that. Other documents, especially those from a mortgage lender, most of the time are not distributed beforehand. Some of these are very important documents which should be thoroughly reviewed before signing.

At the closing, money also changes hands. Realtors bring a check for any extra money they are holding above the commission that is owed them. Buyers must bring a certified cashier’s check (made out to Gary M. Landau Escrow Account if I am the closing agent) for the amount they still owe. If there is any dispute, some money may be held in my escrow account until it is resolved. The sellers get a check for the profit on the house, the buyers gets the keys to their new home, and the deal is complete.

Who pays what?

Although the contract for any deal may stipulate that one party or another pays specific fees, certain fees are routinely allotted to one side or the other. This differs somewhat for Miami-Dade, Broward, and Palm Beach counties. The following is a sample of standard costs typically assigned each party in real estate transactions in Broward County.

Buyer’s costs:

Title Insurance; this varies based on the price of the property.
Simultaneous lender’s policy (if you are getting a mortgage).
Survey of property (if it is a home).
Recording Fees: Deed, Doc stamps on mortgage (if applicable), Mortgage (if applicable), Intangible tax on mortgage (if applicable), Condo approval (if applicable).
Recertification
Flood/hazard insurance (must be prepaid with evidence that you have done so).

Seller’s costs:

Real estate brokers’ commissions (if applicable).
Title abstract or update.
Doc stamps on deed.
Document preparation fee by attorney or other closing agent.
Recording of satisfaction of mortgage.

What should I look for during a walk-through of the property I am about to buy?

The following is a checklist you might want to take to your prospective home when you conduct a walk-through (frequently, the Realtor will accompany you or, for a fee, you can have the inspector join you). This list is intended only to help you with the process, and may not include everything you should examine in your new home.

You should bring a copy of the inspection report, to check that all items flagged by the inspector have been repaired. It also helps to bring a small night light to plug into outlets around the house to ensure that all electrical sockets are working.

Outside the home, Check:

All landscaping, to be sure it is in healthy condition.
Sheds, swing sets or other items you will be buying with the home, that they are still there and in good condition.
Doors, to detect any damage that may have occurred as the seller moved out.
Doorbell, that it works, along with any intercom system or garage door opener.
Outside lights, that they work.

In the living room, family room, and bedrooms, Check:

Walls and floors that may have been blocked by furnishings, carpeting or stored items earlier.
Doors and windows, including that all blinds or window treatments work properly.
Flooring, to ensure it is in the same condition as when you saw the house.
Lights and fans
Outlets
Fireplace, if your home has one.

In the kitchen, Check:

All appliances, to ensure they are working properly.
Sinks, to ensure the water runs properly and at the right temperature, and doesn’t leak in the drain lines below.
Cabinets, that they don’t have additional damage or missing hardware since you saw the house.
Flooring, to check for loose tiles not previously evident.
Windows and doors
Lights and fans
Outlets

In all bathrooms, Check:

Toilets, to be sure they flush.
Sinks, to ensure the water runs properly and at the right temperature, and doesn’t leak in the drain lines below or clog improperly.
Bathtubs and showers, to ensure the water runs properly and at the right temperature, and doesn’t clog improperly.
Plumbing fixtures, to look for physical damage that was not apparent earlier.
Flooring, to check for loose tiles not previously evident.
Windows and doors
Lights and fans
Outlets

Other:

Test and make sure there are proper smoke detectors and carbon monoxide detectors where applicable.
Check that the air conditioner and heat work, by changing the setting and ensuring the unit responds.
If the house has a swimming pool, check that the pump works properly.
If the house has automatic sprinklers, check that they work properly.
If the house has a screened patio, check that the screening and doors are in the same condition as when you saw the house.