Buying property is a complex transaction that comes with a lot of processes. There are many details involved, which is why having a lawyer oversee the process can be an excellent idea.
In fact, in many states, it is a requirement. More than 20 states require an attorney to be present at the closing of a home. South Carolina is one of the states.
This may be a surprise to you if you are from, for example, a western state such as California, Nevada, or Arizona, where having an attorney is not a requirement. However, many of the eastern and southeastern states do have this requirement.
But why? Simply put, a real estate closing is a practice of law in South Carolina. Therefore, a licensed attorney must be present to protect real estate consumers.
An example of when this law was broken was in 1986, in the State v. Buyers Service Co. case. The state sued Buyers Service, alleging the title company engaged in the unauthorized practice of law on several accounts. It provided reports as to the status of titles to real estate and mortgage liens, prepared documents affecting title to real property, and handled real estate closings on its own, without a lawyer present. It also recorded legal documents at the courthouse and advertised to the public that it may handle real estate closings.
There is a lot that a real estate attorney does to ensure everything is in order when you purchase a home. Here’s a look.
Gather Information on the Transaction
At this stage, the attorney coordinates with the lender to obtain all relevant banking documents. They also order title abstracts and gather information about mortgages that need to be paid off, loan insurance, and homeowner documents.
Examine the Title to the Property
The lawyer will examine the history of your soon-to-be property. This means researching the ownership going back at least 61 years for the particular parcel of land. The lawyer will look for any easements or defects in title.
Collect and Prepare Documents
At this point, the attorney’s office is working to get all your ducks in a row, so to speak. They will collect all the lender documents and disclosures. They will then prepare a full package of all the necessary paperwork to finalize the purchase.
Closing Day
The parties meet at the attorney’s office, where the attorney explains all the legal documents. Everyone is informed of what needs to be signed. The closing attorney will fully explain the loan documents to the buyer, so they understand the interest rate, loan term, maturity date, penalties, and more.
Contact Us Today
A real estate closing is a complex process that is greatly simplified with help from an experienced lawyer.
Let a Greenville real estate attorney from Blackacre Law, LLC, guide you through the closing process. Trust us to ensure the process happens smoothly. Call (864) 775-5400 to schedule a consultation.