Real Estate Blog

AI Still Makes Things Up: Why Professionals Must Remain the Experts

/in , , , ,

Artificial intelligence is a powerful tool, a great staring point to starting a project or an article for social media, but we must remember that it isn’t infallible.  We should still check to see if the information it provides is reliable.

A recent legal research experience reminded me that diligence and human judgment remain essential in the age of AI.

I recently used artificial intelligence to assist with legal research. I was working on a matter involving South Carolina property law and asked the AI to identify case law about the possibility of changing ownership from Tenants in Common to Joint Tenants with Rights of Survivorship, post death of the parties, if the deed, when signed, was signed with a misunderstanding as to type of ownership. The AI returned what looked like a legitimate and useful citation: Durham v. Blackard, 255 S.C. 202, 177 S.E.2d 601 (1970).

It even provided a case summary: (This portion is from my conversation with the chatbot)

I took out the parts where I ask it nicely to perform a function.  My wife likes to make fun of me for saying please and thank you to the AI.  I tell myself, politeness doesn’t cost anything, but in reality, when the AI takes over the world and comes for us, I know it’s going after the rude ones first.

“Facts: Parties sought reformation of a deed due to mutual mistake.

Holding: Reformation was allowed only upon clear and convincing evidence that the deed failed to reflect the parties’ true intent.”

Unfortunately, the case didn’t exist. There is a Durham v. Blackard, but it’s a 1993 decision involving fraudulent conveyance under the Statute of Elizabeth. It has nothing to do with mutual mistake at the time of signing the deed.

I brought up the fake case and the made-up content to the AI and it gave me another case.   Creekmore v. Redick, 246 S.C. 423, 143 S.E.2d 251 (1965). The summary it produced sounded plausible and relevant, claiming the case dealt with a mistaken property description and supported deed reformation.

But once again, I could not locate any such case in South Carolina’s reported decisions. The case was simply fabricated, citation, summary, and all. Here is the AI’s response when I once again informed it that it made up a case.

“Apologies for the earlier citation errors. Upon further review, I found that the case Creekmore v. Redick does not exist in South Carolina case law. I regret any confusion caused by these inaccuracies.”

This experience underscores a reality that many professionals are beginning to discover: AI can still make things up. It will confidently produce answers that look right, sound authoritative, and might even contain accurate legal principles, but unless you already know the area well, it can be nearly impossible to spot where the technology fabricates.

This is particularly dangerous in a field like law, where the foundation of our work is truth, precedent, and precision.

Artificial intelligence can be a useful starting point for organizing thoughts, identifying issues, or framing arguments, but be cautious about trusting it to finish the job. It is not a substitute for subject matter expertise.

As professionals, we cannot blindly accept what AI gives us. We must remain vigilant, verify sources, and apply our judgment. We are the subject matter experts, not IT.

What’s on a Real Estate Closing Statement?

/in ,

Home sales in 2021 increased by 8.5 percent from 2020.

Each time someone buys a home, they work through many steps before closing on it. A few days before closing on a house purchase, the buyer and seller receive a real estate closing statement.

What is this statement, and what information can you find on it?

Here is a guide to help you know what a real estate closing statement is, how to read it, and the information you’ll find on it.

Understanding Your South Carolina Real Estate Closing Statement

A real estate transaction, particularly the final act known as “closing” or “settlement,” is a complex culmination of agreements, negotiations, and financial transfers. At the heart of this intricate process in South Carolina lies the real estate closing statement – a pivotal document that distills all financial activity into a digestible summary for both buyer and seller. Far more than just a receipt, it serves as the official financial reconciliation of the entire deal, providing transparency and clarity regarding every dollar spent and received.

The Essence of the Closing Statement

Fundamentally, a real estate closing statement in South Carolina is a detailed accounting of all monies involved in the property transfer. It enumerates every cost, credit, and adjustment pertaining to the transaction, ensuring that both parties fully understand their financial obligations and benefits. Its primary function is to arrive at the precise “bottom line” – the exact amount the buyer must bring to the closing table and the exact net proceeds the seller will walk away with.

In South Carolina, it’s common for the closing firm, typically a law firm due to the state’s “attorney closing” requirement, to prepare this document. Depending on their internal practices or the complexity of the transaction, they may opt for a single, consolidated statement that outlines the finances for both buyer and seller side-by-side. 

Alternatively, they might generate two distinct statements: one specifically itemizing the buyer’s debits and credits, and another exclusively for the seller’s financial breakdown. Regardless of the format, the purpose remains identical: to provide a comprehensive and accurate record of financial flow. Reviewing this statement diligently is crucial, as it provides each party with a clear, line-by-line understanding of how their final financial obligations or receipts were calculated.

The concluding section of the statement is arguably the most anticipated part for both parties. For the buyer, it reveals the precise sum of funds they need to provide to finalize the purchase. For the seller, it specifies the exact amount of money they will receive from the sale after all expenses and payoffs are accounted for. This clear finality is what makes the closing statement such an indispensable document.

Decoding the Information: What You’ll Find on a Closing Statement

A typical real estate closing statement, while dense with figures and line items, is meticulously organized to categorize the various financial components. Let’s break down the main categories you’ll encounter:

The Costs for the Buyer: Debits and Deductions

The buyer’s section of the closing statement—or their dedicated statement—will meticulously detail every expense they incur in acquiring the home. While the most substantial cost is, naturally, the agreed-upon purchase price of the property, numerous other associated fees and charges contribute to the overall expenditure. These are typically listed as “debits,” indicating money owed by the buyer.

  1. The Agreed-Upon Selling Price: This is the foundational debit, representing the negotiated cost of the property itself.
  2. Lender Charges (Loan Origination Fees): If the buyer is financing the purchase, the lender will levy various fees for processing and underwriting the loan. These can include:
    • Loan Origination Fee: A percentage of the loan amount, charged by the lender for processing the mortgage application.
    • Discount Points: Fees paid upfront to the lender in exchange for a lower interest rate.
    • Underwriting Fee: Covers the cost of evaluating the loan application and borrower’s creditworthiness.
    • Processing Fee: For the administrative work involved in handling the loan.
    • Appraisal Fee: Paid to an independent appraiser to determine the property’s market value.
    • Credit Report Fee: For obtaining the buyer’s credit history.
    • Flood Certification Fee: To determine if the property is in a flood zone.
    • Tax Service Fee: Paid to a third-party service that monitors property tax payments to ensure they are current.
  3. Prepaid Items & Escrow Setup: These are expenses the buyer pays at closing that cover periods after closing or are set aside for future recurring costs.
    • Prepaid Interest: Interest on the new loan from the closing date to the end of the month.
    • Property Taxes (Initial Escrow Deposit): Lenders often require an initial deposit into an escrow account to cover future property tax payments. This ensures funds are available when taxes are due.
    • Homeowner’s Insurance Premium: The first year’s premium is typically paid in full at closing, and an initial escrow deposit for future premiums is also common.
    • Mortgage Insurance (PMI/MIP): If applicable, a portion of the premium may be due at closing, along with an initial escrow deposit.
  4. Third-Party Service Fees: These are charges for services essential to the transaction but not directly related to the lender or seller.
    • Home Inspection Fees: For a professional assessment of the property’s condition.
    • Pest Inspection Fee: To check for termites or other wood-destroying organisms.
    • Survey Fee: If a new property survey is required to verify boundary lines.
  5. Title-Related Fees: In South Carolina, these fees are particularly prominent due to the attorney-led closing process.
    • Title Insurance Premiums: Often comprising two parts:
      • Lender’s Title Insurance: Protects the lender’s interest in the property.
      • Owner’s Title Insurance: Protects the buyer against defects in the title (highly recommended).
    • Title Search/Examination Fee: For researching the property’s history to ensure a clear title.
    • Closing/Settlement Fee (Attorney Fees): Paid to the closing attorney for coordinating the closing, preparing documents, and facilitating the transfer of funds. This is a significant cost in SC.
    • Recording Fees: Paid to the county to officially record the deed and mortgage.
  6. Prorations (Buyer’s Share): While often a credit for taxes, if the buyer is taking over something prepaid by the seller (less common), they might have a small debit. For example, if the seller already paid HOA dues for the month of closing, the buyer would owe the seller for their portion.

The Credits for the Buyer: Reducing the Out-of-Pocket Expense

Just as the buyer has costs, they also receive “credits” that reduce the total amount of money they need to bring to closing. These are funds or adjustments that work in the buyer’s favor.

  1. Earnest Money Deposit: This is the initial deposit the buyer made to show their serious intent to purchase the home. It’s held in an escrow account and then applied as a credit towards the purchase price at closing.
  2. Down Payment: The significant portion of the purchase price that the buyer pays upfront, reducing the amount of the mortgage loan. This is a direct credit against the purchase price.
  3. Loan Proceeds: The actual amount of money the lender is providing for the mortgage. This is a major credit that offsets the purchase price and other costs.
  4. Prorated Property Taxes: This is a common and often substantial credit for the buyer. Property taxes are typically paid in arrears or for a specific tax year. If the seller has occupied the home for a portion of the current tax period, they are responsible for their share of the taxes up to the closing date. The buyer receives a credit for this amount, effectively reducing their closing costs, as they will be responsible for paying the full tax bill when it comes due.
  5. Seller Concessions/Credits: Sometimes, as part of the negotiation, the seller agrees to pay a portion of the buyer’s closing costs or provide a credit for repairs. These negotiated amounts will appear as credits on the buyer’s statement.
  6. Prorated HOA Dues/Other Dues: Similar to property taxes, if the seller has prepaid homeowner’s association dues beyond the closing date, the buyer will receive a credit for the unused portion.

The Costs for the Seller: Expenses of Selling

The seller’s side of the statement, while typically less extensive in terms of individual line items compared to the buyer’s, still outlines several significant expenses that reduce their net proceeds from the sale. These are also listed as debits.

  1. Mortgage Payoff: This is often the largest single debit for the seller. If they have an existing mortgage on the property, the outstanding balance, including any interest accrued up to the closing date and potentially a prepayment penalty (though less common now), must be paid off at closing. This amount directly reduces the funds the seller receives.
  2. Real Estate Commissions: The commissions paid to the real estate agents (both the seller’s agent and the buyer’s agent) are a primary expense for the seller. This is usually a percentage of the final sales price and can be a substantial sum. The commission is typically split between the two brokerages involved.
  3. Prorated Property Taxes: From the seller’s perspective, they are debited for the property taxes owed for the period they owned the home up to the closing date. This is the flip side of the buyer’s credit for prorated taxes.
  4. Transfer Taxes/Deed Stamps: In South Carolina, there is a deed recording fee (often referred to as deed stamps) that is usually the seller’s responsibility. This is calculated based on the sales price.
  5. Attorney Fees (Seller’s Portion): The seller will incur legal fees for the attorney preparing the deed, handling the payoff, and overseeing their side of the closing.
  6. Title Insurance (Seller’s Responsibility): While the buyer often pays for the lender’s and owner’s title insurance, the seller might be responsible for clearing previous title issues or providing certain title-related documents.
  7. HOA Fees/Other Dues (Prorated): The seller is responsible for their share of any homeowner’s association dues, special assessments, or other recurring charges up to the closing date.
  8. Seller Concessions: Any closing costs or repair credits that the seller agreed to pay on behalf of the buyer will appear as debits on the seller’s statement.
  9. Home Warranty: If the seller agreed to purchase a home warranty for the buyer as part of the deal, the cost of this warranty will be debited from the seller’s proceeds.
  10. Lien Payoffs: If there are any outstanding liens on the property (e.g., judgments, mechanic’s liens), these must be paid off at closing and will appear as debits.

The Credits for the Seller: Funds Received

The seller’s credits typically simplify to one primary source, though others can occasionally appear.

  1. The Home’s Sales Price: This is the most significant credit for the seller, representing the total amount for which the property was sold. This is the starting point from which all seller costs are subtracted.
  2. Prorated Prepaids (Less Common): In rare instances, if the seller had significantly prepaid certain expenses (like a full year of HOA dues) that extend far beyond the closing date, they might receive a small credit back from the buyer for the unused portion.

The Bottom Line: Final Figures and Financial Exchange

The “bottom line” is the summation of all the financial machinations detailed above, providing the ultimate figures for the actual money exchange at closing.

For the buyer, the closing statement’s final calculation involves adding up all the debits (costs) and then subtracting all the credits. The resulting figure is the precise amount of money the buyer must bring to the closing appointment. 

This amount typically needs to be in the form of a cashier’s check or a wire transfer, as personal checks are rarely accepted for such large sums to ensure funds are immediately available. The closing attorney’s office will provide detailed instructions on the acceptable payment methods and amounts well in advance.

For the seller, the calculation is essentially the reverse. The closing firm adds up all the credits the seller receives (primarily the sales price) and then subtracts all the seller’s associated costs and payoffs. The final number represents the net proceeds the seller will receive from the sale. This amount is usually disbursed to the seller via a direct wire transfer to their bank account or a check issued by the closing attorney’s office immediately after the closing is completed and all documents are recorded.

Therefore, the real estate closing statement serves as the definitive financial ledger for the transaction. It clearly illustrates to the buyer how much they need to contribute to complete the purchase, and it transparently shows the seller precisely how much they will gain after all their obligations and expenses are settled. 

Its accuracy and the detailed breakdown it provide are crucial for a smooth and legally sound transfer of property ownership in South Carolina. Buyers and sellers are strongly advised to review this document carefully, ideally with their real estate agent or attorney, prior to the closing date to clarify any questions and ensure all figures align with their understanding and agreements.

A Real Estate Closing Statement Is A Summary

The best way to explain a real estate closing statement is to know that it summarizes the financial details of a real estate deal.

In some cases, the firm handling the closing creates one statement that includes the information for the buyer and seller.

In other cases, they create two statements: one for the buyer’s information and the other for the seller’s information.

The closing statement summarizes all the money coming and going for the buyer and seller, and each party can read through it to see the transaction details.

The bottom of the statement shows the final amounts for the buyer and seller. It shows how much money the seller receives at closing and the amount of money the buyer must bring to the closing.

The Importance Of Reading It Before Attending The Appointment

Whether you’re buying a house or selling one, hiring a real estate attorney is an essential step you shouldn’t forego. Your attorney handles the closing work for you and ensures its accuracy.

You should receive a copy of the closing statement a few days before the scheduled appointment. When you get it, you should read it through line by line.

All the documents you sign at the closing come from the information on this one document. So if you find errors, you shouldn’t close on the deal until they fix them.

If you find mistakes, fixing them before closing is much simpler than fixing them afterward.

For example, suppose the statement doesn’t include the earnest money you paid when you wrote the offer. If this happens, you’ll pay more for the house than you should, as your earnest money reduces the amount you need.

Use A Real Estate Lawyer For Assistance

Learning about a real estate closing statement can help you prepare for buying or selling a home. Then, when you hire a real estate lawyer for help, you’ll have the legal protection and assistance you need for the sale.

If you need a real estate lawyer in Greenville, SC, contact us at De Bruin Law Firm. We can help you with any type of real estate sale!

How Can a Real Estate Lawyer Help You?

/in ,

About 5.8 million houses sold in May 2021. That’s 44.6% up from May of last year! Whether you plan on buying or selling this year, there are many legal variables to consider first.

You don’t have to navigate these legal complexities alone. Instead, consider hiring an experienced real estate lawyer. You can rely on their experience and expertise throughout every step of the process.

What is a real estate attorney, exactly, and what do they do? When should you hire an attorney to help? Keep reading to find out!

After reading this guide, you can hire the best real estate lawyer to help you through your next transaction. Identifying the benefits of having a lawyer at your side will help you make a more informed choice.

Read on to learn everything you need to know before buying or selling a property today!

What is a Real Estate Attorney?

First, let’s answer the question that likely brought you here: what is a real estate attorney?

A real estate lawyer can help guide you through the legal process of buying or selling property. They can negotiate the transaction and handle any disputes that occur.

Some states even require you to have a real estate attorney present during the closing process. Even if you live in a state that doesn’t require one, you might want to consider it. After all, a lawyer will have your best interests in mind every step of the way.

They can prepare and review any legal documents or paperwork in advance. They can also advise you if there are any problems or omissions in the documents. Otherwise, you might not realize there’s a problem until after the fact.

Real estate law is a matter for local and state jurisdictions. Make sure to hire an attorney with experience in the area.

You can rely on their experience and expertise to make more informed decisions before buying or selling property.

Real estate law covers selling, buying, or legal issues related to real property.

Make sure to find a lawyer who specializes in real estate transactions. They’ll understand the proper procedures you’ll need to follow. For example, you might want to ask them about:

  • Zoning
  • Titles
  • Estate planning
  • Deeds
  • Property taxes

These laws can vary by local or state government. Make sure to choose a lawyer licensed to practice in the state where the transaction is taking place.

Why Hire a Lawyer?

Remember, you’re required to hire a lawyer in some states. Your lawyer can help prepare or review documents before a transaction takes place. These documents can include:

  • Purchase agreements
  • Title documents
  • Transfer documents
  • Mortgage documents

They’ll also attend the closing (when money is paid and the title is transferred). They’ll make sure the transfer is legal and binding.

You might want to hire a lawyer to ensure the necessary documents are in order. They can also write insurance policies as needed. Otherwise, you might want to hire them to handle the transfer of funds for the purchase.

If you’re financing the purchase, talk to your real estate attorney about the federal HUD-1 Form. Discuss any related transfer of funds documentation for the lender, too.

Appeal to State or Lender Requirements

If you’re buying a home in certain states, you’re required to retain a real estate attorney. These states include:

  • Connecticut
  • Delaware
  • Georgia
  • Massachusetts
  • New York
  • North Carolina
  • South Carolina
  • West Virginia

State law will require you to retain a lawyer for specific parts of the transaction.

Some states require you to have an attorney to provide a title opinion. These states include:

  • Alabama
  • Louisiana
  • Mississippi
  • North Dakota
  • South Dakota

An opinion shows a lawyer reviewed the title abstract or examination. The document indicates they didn’t see any obstacles to the transaction.

Remember, you still might want to hire an attorney even if the state doesn’t require one. They can help if you’re dealing with a tricker type of purchase. They can also assist if there’s an issue regarding property lines.

Some mortgage lenders also require you to hire an attorney as part of the transaction.

Avoid Contractual Issues

Only 5% of all buyers choose to purchase a home directly from the owner. Before going this route, you might want to hire an attorney. Otherwise, you might encounter contractual issues and disagreements.

For example, you might encounter disputes related to:

  • The chain of title
  • Lot line problems
  • Other contract issues

Consider hiring a real estate lawyer if the purchase involves any out-of-the-ordinary elements. Otherwise, these elements might complicate the purchase contract.

An experienced lawyer will take the complexity of your situation into account. If any contractual issues arise, they’ll know how to respond.

Your attorney can help resolve the problem. For example, they can provide legal representation if a dispute ends up in a courtroom.

Your lawyer will gather information from both parties and try to encourage a resolution. They might hire a surveyor or title company to gather additional evidence, too.

Peace of Mind

You never know when something could go wrong. With that in mind, consider hiring an attorney before there’s an issue. Having a lawyer at your side will ensure your bases are covered.

They can provide peace of mind before a transaction goes awry. They’ll also consider your best interests every step of the way.

How to Find a Real Estate Attorney

To find the best real estate lawyer in town, turn to friends, family members, and neighbors. Start developing a list of referrals. Visit your local bar association website online, too.

Look for a real estate attorney with years of local experience in the industry. Their prior experience will give you peace of mind. They’ll have the expertise and know-how necessary to offer the help you need.

Buy or Sell With Ease: Hire a Real Estate Lawyer Today

Buying or selling property doesn’t have to feel stressful. Instead, consider hiring a real estate lawyer. They’ll protect your best interests through every phase of the process.

With their help, you can complete the transaction without unnecessary hassle.

Need help right away? We’re here for you.

Schedule a consultation today to get started.

Everything You Should Know About Real Estate Law

/in ,

It’s no secret that real estate properties are among the most valuable assets. Did you know that the country’s real estate market size is expected to rise by 0.4 percent in 2021?

When done right, purchasing and selling property can be a lucrative investment. You need expert guidance when making such a life-altering financial decision.

Real estate transactions should follow various regulations and principles for them to succeed. Therefore, you should understand real estate law to improve your experience when buying or selling property.

But what exactly does the real estate law entail, and what role does it play in real estate transactions? Find out more in this detailed guide:

What Exactly is Real Estate Law?

Real estate law typically governs the acquisition and use of property. The law also oversees the buying, selling, and usage of land. Its common aspects include estate planning, taxes, zoning, purchase financing, titles, and deeds.

There are various stipulations under the real estate law on the right to own and use property. These stipulations directly or indirectly cover home sellers/buyers, landlords, renters, and homeowners.

Other law domains such as contract law, inheritance law, and family law relate to real estate law. Contract law, to be precise, requires parties to seal their transactions in writing. Special family law provisions such as spousal rights in homeownership also apply to real estate law.

Federal Real Estate Laws

Four major federal laws in the US govern all types of real estate transactions. They include the Real Estate Settlement Procedures Acts (of 2011) and the Truth in Lending Act (of 1974).

These laws mandate property sellers to be transparent about their interest rates. They also give buyers a right to discard loans and lay guidelines on solving disputes brought by mortgage rates.

Dodd-Frank Wall Street Reform and Consumer Protection Act (of 2010) covers the rights of borrowers. It allows you to sue your lender if their unfair acts subjected you to huge monetary losses. This law also protects you from fine print and hidden fees charged by lenders.

Under the Fair Housing Act of 1968, you shouldn’t be discriminated against when selling or buying property. This legal framework covers discrimination against consumers’ disability, familial status, and sex. It also prohibits discrimination against religion, nationality, gender, and race.

Does Real estate Law Qualify as State Law?

Every state in the US has its laws surrounding real estate practices, procedures, and licensing. These laws tend to change due to court decrees or legislative actions. You should keep tabs on them for you to understand your rights in any real estate transaction.

Find out about the agency regulations that govern client-agent relationships in your state. Learn more about agency disclosure, buyer agency agreements, listing agreements, and dual agency. You should also check the stipulations on transactional and facilitating brokerage.

US states have different licensing laws and procedures on real estate transactions. Learn more about the fees and minimum requirements before investing in real estate.

Your local state government may have laws on land-use restrictions. Find out the board/agency that grants zoning ordinance variations and the time limits for the same.

Every state has its real estate laws on ownership rights, theories, and forms. Check whether your state recognizes liens or title for ownership. You should also find out the requirements for married couples and other special categories of buyers.

Real estate law also covers property disclosure, rent control and rights, and ownership transfer. Each segment comprises regulations that are unique to your state.

Real Estate Law in Property Transactions

A typical real estate transaction involves a broker (representing the seller), a seller, a buyer, and an attorney. The seller and broker must seal their relationship in a contract known as a listing agreement. In this type of contract, the broker may earn a certain commission if they find a suitable buyer.

An exclusive arrangement gives the broker the right to compensation even if a buyer is found without their help. The broker/salesperson must have obtained a license from the relevant state licensing agency for the transaction to be legal.

Contract law governs agreements between buyers and sellers. The agreements must be sealed in writing, while the seller should give proof of the title.

The buyer may hire a real estate attorney or a title insurance company to investigate the title’s marketability. They may also seek coverage from the insurance company for the title against losses if the title is invalid.

Real estate transactions end with the seller handing out a deed to the new buyer. A deed provides ownership transfer notice or establishes property ownership.

Real Estate Law and Lawyers

Real estate attorneys help in documenting and reviewing contracts and transactions. You’ll also need them when examining titles, insurance policies, and sale contracts.

With an attorney’s help, you’ll negotiate a contract that protects your right. The legal counsel can also revise or adjust it to fit your unique needs.

Your real estate lawyer can arrange for title insurance for your property. This policy covers any problems that occur before or after you purchased an asset.

You can count on an experienced attorney to protect your interests in a real estate transaction. They may work with brokers, developers, or other lawyers to get you a legally sound deal.

Handling foreclosure proceedings can be difficult without expert legal help. You may need this help when facing a lender that wants to recover a defaulted loan by selling or obtaining ownership of your property.

Some real estate transactions involve unpleasant legal situations that require legal representation. A real estate lawyer will expertly advise you on zoning violations, property management, and property taxes. You may count on them to reach a settlement agreement.

Hire a Real Estate Attorney Today

With these basics of real estate law, you can decide how you’d like to benefit from legal help. To get the most out of a property transaction or negotiation, you need to know your rights. Use this information when carrying out any real estate transaction.

Do you need legal help navigating the complex real estate market? Our real estate lawyers are more than willing to listen and handle your situation. We’ll respond within one business day once you submit your query.

Everything to Consider When Choosing Real Estate Lawyers

/in ,

There are currently over 813,900 lawyers throughout the US. If you’re searching for real estate lawyers in Greenville county, it helps to narrow down your options. Otherwise, you could struggle to find a lawyer with the experience and expertise you need.

Here are six tips that can help streamline your search. With these tips, you can find a professional, qualified lawyer.

They’ll help you accomplish your real estate goals.

Don’t hire the first real estate lawyer you find online. Instead, vet your options for lawyers using these easy tips today.

1. Look for Experience

Remember, not every lawyer you find will have the experience and expertise you’re looking for. To start your search, head online. Visit your local bar association website or the Martindale-Hubbel directory.

Then, start making a list of real estate lawyers in the area.

You can use these websites to learn more about each lawyer’s professional history. How long has each lawyer practiced law? Consider how long they’ve specialized in real estate law, too.

Choosing a lawyer who specializes in real estate law will give you peace of mind. They’ll understand the laws and procedures that are relevant to your situation. A general lawyer, on the other hand, might lack that expertise.

Ask each lawyer on your list how long they’ve specialized in real estate law. Why did they choose that specialty?

Look for someone with years of experience working in South Carolina, too. Some procedures can vary based on your location. If the lawyer isn’t familiar with South Carolina laws, they could make a mistake.

Make sure their experience is relevant to your situation, too. For example, are you buying or selling real estate? Find a lawyer with relevant real estate experience.

Otherwise, they might struggle to help you.

2. Consider Their Qualifications

Make sure every lawyer on your list is qualified to practice law in the area. Visit your local bar association website again. Confirm that each lawyer’s license is up-to-date.

Verify that they’re licensed to practice law in South Carolina. If their license is outdated, scratch them off your list.

What other qualifications does the lawyer have? For example, you might find a lawyer that’s a member of a local or national association. If they hold a leadership position, they’ve likely gained the respect of their peers.

3. Ask About Their Recent Work

As you vet your options for lawyers, keep your unique situation in mind. Remember, you’ll want to find lawyers with real estate experience relevant to your situation.

Ask each lawyer about their most recent casework. Do they usually help property buyers or sellers? What does the process entail?

Learning about their most recent work can help you determine if they can help you.

For example, your real estate agent might help:

  • Prepare the necessary documents for buying or selling real estate
  • Explain the legal terms in a purchase or sale contract
  • Determine defects of title (and help you recognize the best solutions)
  • Calculate tax liabilities associated with the sale or purchase
  • Negotiate with a lender
  • Explain the terms of a mortgage
  • Review any documents you’ll need to sign
  • Receive a deed to the property
  • Secure title insurance
  • Evaluate liens, covenants, easements, or other obligations

You don’t have to take on these responsibilities alone. If you lack experience with these tasks, you might make a mistake. Instead, talk to your lawyer.

Ask about their services. For example, do they help with quiet title actions and real estate closing? Choose someone based on the help you need.

They’ll help guide you through the process. You can leverage their years of experience and expertise in the industry. With their help, you won’t have to feel like you’re in the dark.

4. Request References and Reviews

Every lawyer will try to convince you that they’re the best in the industry. You don’t have to take their word for it. Instead, ask each lawyer on your list for references and reviews from their previous clients.

About 92% of consumers trust peer recommendations. In fact, about 54% visit a local business’ website after reading a positive review. Reading reviews can help you feel more reassured about the lawyer you choose.

You can learn more about the lawyer’s abilities from people who were once in your shoes.

Try to speak with at least three of their most recent clients. Did the client experience any issues while working with the lawyer? Would they suggest you hire someone else?

You can head online to find references and reviews, too. Check the lawyer’s Better Business Bureau and Google My Business listing. Read a handful of reviews from each site.

Finding one or two negative reviews is normal. If the bad comments outweigh the good, however, you can scratch that lawyer off your list.

5. Interview Them in Person

Try to schedule a consultation with at least three real estate lawyers on your list. Many lawyers offer free evaluation appointments. Take advantage of that opportunity to meet them in person.

Treat your consultation appointment as an interview. Have a list of questions you want to ask prepared. For example, you can ask:

  • What cases have you handled recently?
  • What was the outcome for those cases?
  • How long have you practiced real estate law?
  • How long have you practiced in South Carolina?
  • Have you handled a situation that’s similar to mine?
  • How would you approach my situation?

Ask the lawyer you speak with if they’ll primarily handle your case. They might pass you off to someone else on your team if they’re too busy.

Ask about their availability, too. You’ll want to find someone who can dedicate their time to you.

6. Compare Costs

Comparing lawyer fees can also help you narrow down your options. Ask for an itemized list of potential charges. What’s included in the contract?

Make sure to review the contract in detail before signing on the dotted line.

How Greenville, SC Real Estate Lawyers Can Help

Navigating the intricacies of real estate in Greenville, South Carolina, whether you’re buying, selling, investing, or developing, can be a complex and often daunting process. From residential homes to sprawling commercial properties, each transaction involves a web of legal documents, financial considerations, and potential pitfalls. 

This is where the acumen of a seasoned Greenville, SC real estate lawyer becomes not just beneficial, but often essential. These legal professionals offer understanding to protect your interests, ensure compliance, and facilitate smooth transactions, providing peace of mind in what can be one of life’s most significant financial endeavors.

Title Insurance

One of the most critical, yet often misunderstood, aspects of real estate is title. A clear and unencumbered title is paramount to any property transfer. Title insurance protects both buyers and lenders from financial loss due to defects in a property’s title, such as undisclosed liens, easements, boundary disputes, or even claims of ownership by others. A Greenville, SC real estate lawyer plays a pivotal role in this area. 

They begin by conducting or overseeing a meticulous title search, delving into public records to uncover any potential issues. If defects are found, the lawyer works diligently to resolve them before closing. 

This could involve negotiating with lienholders, resolving boundary disputes, or clearing up errors in previous recordings. Their legal understanding ensures that the title presented is clean, marketable, and insurable, safeguarding your investment against future challenges and ensuring that the title insurance policy genuinely protects you against risks that might emerge post-closing.

Real Estate Investors

Real estate investors, from individuals looking for their first rental property to seasoned developers embarking on large-scale projects, face a unique set of challenges and opportunities. A Greenville, SC real estate lawyer is an invaluable partner in mitigating risks and maximizing returns. For instance, lawyers assist with comprehensive due diligence, examining zoning regulations, environmental reports, potential liabilities, and property history to ensure the investment aligns with the client’s goals and risk tolerance. 

They can advise on the optimal legal entity formation (e.g., LLCs, partnerships, corporations) to shield personal assets and optimize tax implications. Furthermore, they are adept at drafting and reviewing complex purchase agreements, joint venture agreements, financing documents, and lease agreements. For investors looking to develop, lawyers help navigate land use laws, obtain necessary permits, and manage construction contracts, ensuring every phase of the investment is legally sound and protected.

Agents and Brokers

Real estate agents and brokers are at the forefront of property transactions, facilitating connections between buyers and sellers. 

While they are highly proficient in sales and market dynamics, they often encounter situations that require legal interpretation and intervention. Greenville, SC real estate lawyers serve as crucial advisors and advocates for agents and brokers. 

They can assist with drafting and reviewing listing agreements, buyer agency agreements, and sales contracts to ensure they are legally compliant and protect the agent’s commissions and responsibilities. 

When disputes arise – whether over commissions, disclosures, or contractual misunderstandings – lawyers provide essential representation, often seeking resolution through negotiation, mediation, or, if necessary, litigation. 

They also offer guidance on compliance with state and federal real estate laws, licensing regulations, fair housing acts, and professional ethics, helping agents and brokers avoid legal pitfalls and maintain their professional integrity.

Commercial Real Estate

Commercial real estate transactions in Greenville, SC, are inherently more complex than residential ones, involving higher stakes, intricate legal frameworks, and diverse property types like office buildings, retail spaces, industrial warehouses, and vacant land for development. A commercial real estate lawyer is indispensable. 

Their area of focus extends to handling zoning and land use issues, ensuring the proposed use of the property is permissible and guiding clients through the re-zoning or variance application process. They address environmental concerns, including Phase I and Phase II assessments, and help mitigate potential liabilities associated with hazardous materials. 

Lawyers meticulously draft and negotiate sophisticated commercial leases, often involving unique clauses for tenant improvements, rent escalations, and common area maintenance. For large-scale developments, they manage acquisition, financing, construction, and disposition agreements, ensuring all aspects are legally sound and aligned with the client’s business objectives.

Real Estate Closing

The closing is the culmination of the real estate transaction, where ownership is officially transferred. In South Carolina, unlike some other states, an attorney must conduct the real estate closing. This mandate underscores the complexity and legal significance of this final step. 

A Greenville, SC real estate lawyer orchestrates the entire closing process. They are responsible for preparing all necessary legal documents, including the deed, bill of sale, affidavits, and closing disclosures, ensuring their accuracy and proper execution. 

A Greenville, SC real estate lawyer also reviews the loan documents on behalf of the buyer, explains all terms, and confirms that all conditions of the purchase agreement have been met. They manage the disbursement of funds, ensuring that all parties – sellers, lenders, agents, and lienholders – receive their appropriate payments. 

The presence of a Greenville, SC real estate lawyer at closing ensures that the transfer of title is legally valid, all financial obligations are properly handled, and the transaction is concluded smoothly and in compliance with all state laws.

Real Estate Contract Review and Negotiation

The real estate contract is the backbone of any property transaction, outlining the rights, responsibilities, and obligations of all parties involved. A poorly drafted or unreviewed contract can lead to significant financial losses and protracted legal disputes. This is why having a Greenville, SC real estate lawyer review and negotiate the contract is one of their most valuable services. 

Before you sign anything, a lawyer will meticulously examine every clause, term, and condition, identifying any ambiguities, unfavorable provisions, or hidden liabilities. They will ensure that contingencies for financing, inspections, and appraisals are appropriately structured to protect your interests. 

During negotiations, the lawyer acts as your advocate, working to secure the most favorable terms possible, whether that involves price adjustments, repair credits, closing cost allocations, or specific timelines. 

Their goal is to ensure the contract accurately reflects your intentions, minimizes your risk, and provides clear remedies in case of breach or unforeseen circumstances, laying a solid legal foundation for the entire transaction.

The real estate market of Greenville, SC, presents both exciting opportunities and potential challenges. Engaging a Greenville, SC real estate lawyer is a proactive step that provides comprehensive legal protection across all facets of property ownership and transfer. 

Whether it’s ensuring a clear title, guiding an investor through complex deals, advising agents, facilitating commercial ventures, conducting a legally compliant closing, or meticulously reviewing contracts, a Greenville, SC real estate lawyer serves as an indispensable guardian of your interests, ensuring your real estate journey is as secure and successful as possible.

Start Your Search: 6 Tips for Choosing Real Estate Lawyers You Can Trust

You don’t have to hire the first real estate lawyers you find online. Instead, use these tips to narrow down your options. With these tips, you can find a reliable, helpful real estate lawyer.

They’ll ensure you accomplish your goals with ease.

Want to talk to legal counsel you can trust? We’re here to help.

Schedule a consultation with a member of our team today.

Property Ownership Disputes: How to Use Quiet Title Actions

/in ,

Whether there is a lien on your property or an unexpected heir comes forth claiming to be the rightful owner, there is a chance that you will have to deal with quiet title actions to clear the air about who has the greater right to the property. Title law can be confusing if you don’t understand what it is and how it works. It’s in your best interest to talk to a lawyer who specializes in title law.

Continue reading to learn everything that you need to know about quiet title actions and how they’re used to solidify a claim on a property dispute.

What Is a Quiet Title Action?

Quiet title actions are filed to 1) resolve disputes of property ownership or 2) clear liens or levies on the property. It’s considered to be a type of legal proceeding used to determine the ownership of a property. It’s a type of lawsuit brought against anyone who is trying to claim ownership.

Quiet Title Action Steps

The first step to a quiet title action claim is the filing of the claim. Once the claim gets processed, the court will issue a notice to the defendants who will be involved in the suit.

Ownership is then negotiated. If it cannot be settled, the judge will decide whose claim is more solid. The judge will give their ruling, then the updates will be updated accordingly. The new order will then be given to the title company.

What Does It Mean to “Quiet a Title”?

The term “quiet a title” means that once the owner prevails, that property owner can no longer be challenged by anyone seeking a claim of the property. It prevents future inquiries made about the rightful owner of a property. It also allows the defendant of the case to remain anonymous.

The parties involved in a quiet title action may be:

  • Family members of those who pass away without a will
  • Family members of those who pass away with an unclear or questionable will
  • Mortgage holders of underwater property foreclosures
  • Absentee property owners
  • Tax lien spectators

The properties involved in a quiet title action may have been in a tax delinquent status for more than five years or identified for redevelopment or reuse. The process may take anywhere from eight to ten weeks through about six months. Quiet title action cost may average thousands of dollars depending on your personal situation and the local regulations.

How Do Quiet Title Actions Work?

When a quiet title action is uncontested, the claimant receives ownership and it solidifies their claim to the property. The county records are then updated to reflect these changes to the property.

However, when a quiet title action is contested, the claimant must go to trial. The trial will determine who has the strongest claim to ownership of the property. The Master of Equity will then extinguish the previous rights of the defeated party’s ownership. They update the county records and “chain of title” (or “chain of history”) to show the new and/or current ownership.

A quiet title action may be necessary when you’d like to purchase a house or property that is currently unoccupied. It’s important to determine if there are possible heirs, lien holders, or lessees that may come out of the woodwork and potentially cause a problem.

You might encounter quiet title actions when the ownership of a property is defective. This includes record errors, fraud, liens, probate, and foreclosure.

Record Errors

Human error attributes to errors in property ownership documents because automated services are just beginning to track this information. Mistakes like this can put property owners in a difficult situation.

Fraud

Fraudulent behavior resulting in the forging of a title deed for a property as a way to intentionally deceive others. In some cases, forged documents have led to the illegal sale of a property.

Liens

In a title lien, the property owner gives another individual or creditor the right to seize property to secure outstanding debts. The right to the property is then held as collateral. When the debt goes unpaid, the property is then taken from the property owner.

Probate

Probate is the legal process of property and/or asset distribution to the family following a loved one’s death. The legitimacy of their will is examined before the distribution of assets and properties. When someone dies without having a will in place, assets are then distributed according to the Laws of Descent and Distribution.

Foreclosure

Foreclosure can cause you to lose your home or property when you default on your mortgage payments. However, it can also throw a wrench in any plans that you may have to buy a home or property that has been foreclosed upon, even if you are the rightful owner.

Why Are They So Important?

Quiet title actions are essential in establishing legal ownership for real estate transactions. They can handle any claims of defective properties or legal issues that crop up in the obtaining of a deed to the properties. Title companies will check and verify any deed (as well as checking for existing claims against a property) when buying and/or selling the property.

A quiet title action can help to resolve:

  • Adverse claims on possession
  • Issues with tax taking
  • Boundary disputes

If you want to prove that you are the rightful owner of a property, you may have to file a claim for a Quote Title Action lawsuit.

Do You Need a Lawyer?

Title law can be confusing and overwhelming when you face it alone. Having someone by your side who knows how the laws work can help you to achieve the best outcome and alleviate some of the stress of quiet title actions.

Contact De Bruin Law Firm today for a consultation. We’re looking forward to working with you on this!

Protecting Your Sale: A Comprehensive Guide to Title Insurance

/in ,

Buying a home is a big investment and one that takes careful planning and organization. You want to be sure you are buying the best home for your money.

It’s the reason you hire a real estate agent to guide you through the home search process. It’s the reason you have a home inspector go through the property with a fine-tooth comb. You hire a mortgage broker or go to your trusted financial institution because you want their expertise.

One part of the process that might surprise is the requirement to get title insurance. What is title insurance and why do you need it?

Read on to learn what you need to know about title insurance when you’re buying a house.

What Is Title Insurance?

Title insurance is a type of insurance policy used to protect you and the mortgage company. This insurance is different from other types of insurance you might get, like auto insurance or homeowners insurance.

Typically, when you purchase an insurance policy it protects you against possible events that might happen in the future.

Title insurance is different in that it protects you from things that have potentially happened in the past with the property you are buying.

When considering title insurance there is both lender’s title insurance and owner’s title insurance.  The lender’s title insurance protects the interest of the lender, mortgage company or bank. While the owner’s title insurance will protect the homebuyers interest in the property purchase.

Typically, the lender will require the homebuyer to get title insurance and it is covered under part of the closing costs.

Title Insurance Lingo to Know

To understand how title insurance works, it’s important to understand the terminology associated with getting title insurance. Let’s take a closer look at some verbiage you should know.

Title

The title is the legal document that is issued when you purchase a property. It has the legal description of the property in question.

Title Insurance

Title insurance is the insurance policy that protects your rights and the rights of your lender if there is a dispute related to the property.

Owner’s Title Insurance

The owner’s title insurance is issued to the homebuyer. As the policyholder, you’re also named as the beneficiary. The policy protects you if there are claims made on the property after the house title is transferred to you.

Lender’s Title Insurance

The lender’s policy, sometimes referred to as the loan policy, protects the lender who has a financial interest in the property. It offers them protection from possible financial loss if there are claims made on the property after the sale is complete.

Title Search

The title search is done before the title transfers from one owner to the next. It checks the legal ownership of the property. The goal is to identify anyone who might have a legal claim on the property. it also would identify, hopefully, anyone who might have a right to use the property.

Title Defects

Title defects help to identify through the title search and issues or threats that might be made on the property.  By looking at anyone who might have a financial or legal interest in the property, the title search can identify potential defects.

Encumbrance

An encumbrance would identify any possible limitation on the property getting purchased. An encumbrance might include things like a zoning law issue, an existing lease on the property, or easements or encroachments that exist on the property.

Easement

An easement gives another person the right or access to use a part of your property. An example might include a utility company might have an easement on the property. It gives them the legal right to use the property for a specified purpose, yet it doesn’t mean they have any ownership right.

Encroachment

Encroachments happen when something spills onto the property being purchased. This might include a fence, stand alone building or even a driveway. Encroachments can make property issues tricky and should be avoided if possible.

How Does Title Insurance Work?

The title insurance works similarly to other insurance policies you might be familiar with. If an issue arises with the title on the property you have purchased, the insurance company will work to address the issue.

They might investigate to see if the issue in question is legitimate. They might fight the issue in the courts on your behalf or the lender’s behalf.

If they can’t resolve the issue, they would be responsible for compensating you accordingly.

What Does Title Insurance Cover

There are several areas that are typically covered under title insurance.

One thing the insurance protects against is any unknown liens on the property. The previous owner may have had a lien put on the property that didn’t show up on the title search. This might be for unpaid taxes or unpaid child support, for example.

Often property passes from one person another through a will after someone dies. If there was an heir that was omitted when the property was inherited, they might show up wanting their portion of the property. In fact, it would be considered they still have some legal ownership in the property. The title company would need to resolve the ownership issue.

Mistakes happen and title insurance protects against possible errors in the public record.

There also could be a potential issue related to fraud. If the property was previously bought or sold fraudulently, the insurance protects against this.

Cost of Title Insurance

The good news about title insurance is that it’s a one-time cost. Typically, the lender’s insurance is slightly less than the owner’s title insurance.

Lender’s insurance is usually included in the closing costs paid at the time of the closing on the property.

The other part of the good news is that while you only pay once for the policy, it is good for the whole time you own the property. Most lenders require title insurance, while owner’s insurance can be optional.

 

Understanding Title Insurance

Buying a house is certainly exciting. Yet, it comes with some risks too. Understanding what is title insurance works to eliminate some of those associated risks that come from the history of the property.

If you have questions related to your property purchase, or need a real estate lawyer for a closing or to look at your title insurance issue, we can help. Contact us today so we can answer your real estate related questions.

Buying a Property? Do These 9 Items Before the Real Estate Closing

/in ,

So, you’ve finally found your dream home, and you’ve entered into an agreement with the seller. Congratulations!

With the end in sight, now may seem like the perfect time to rest and unwind after the hard work of your real estate search—but not so fast. There’s a reason the average real estate closing takes almost 50 days on average: there’s a lot to do!

Before you let yourself relax, there are a few essential items to take care of. Let’s take a look at the things you’ll need to do before your upcoming closing.

1. Apply for a Loan

Whether you’ve secured pre-approval or not, now is the time to apply for a mortgage loan. This is one of the most important things you’ll want to do before the closing, as nearly half of all closing delays happen because of financing issues!

This will mean doing some research to find the best mortgage lender for your needs. To do this, you’ll need to compare rates as well as any additional fees and requirements. Don’t forget to also lock in your interest rate once you’ve been approved.

2. Hire a Real Estate Attorney

The closing process can be complicated, and having someone look out for your best interests is a great help for most buyers. Even with a helpful closing organizer in hand, buyers often find that the expense of hiring a real estate lawyer pays for itself!

Real estate attorneys can review each of the many contracts and documents involved in the purchase of your home. They can help negotiate on your behalf, watch for elements that could complicate the purchase, and offer peace of mind during any tricky situations you find yourself in moving forward.

3. Get Ready for the Closing Fees

The loan may be the biggest financing issue on your mind, but it’s not the only one. Every real estate closing comes with a host of closing fees, which are payments made to third parties for various services related to the property transfer. These fees can include anything from an appraisal fee to Homeowner’s Association fees.

On average, the total will range from 2% and 7% of the home’s purchase price. This, of course, is shared between the buyer and the seller, with the buyer often paying slightly more, usually 3-4%.

4. Examine the Title

Before you move any further into the home closing process, you’ll need to clear the property title. The last thing you want to learn at this point is that the seller doesn’t own or have the right to sell the house! This can happen when relatives or an ex-spouse claim that they, too, are a legal owner of the home.

Working with a title examiner can ensure that no one aside from the seller can claim ownership of the property. As the buyer, you’ll have the opportunity to choose the real estate attorney or title company you partner with. If needed, seek out recommendations from your lender or real estate agent to be sure you’re working with a reputable expert.

5. Do the Home Inspection

At some point during the escrow period, you’ll want to have a professional come out to do a home inspection. Most major lenders require this, but even if yours doesn’t, it’s still a good idea.

This preventative measure can help ensure that there are no issues with the home before the official property transfer. An inspector will look for major problems with the building’s structure, wiring, plumbing, and more—all of which could be costly to fix.

If the home inspection uncovers any previously unknown problems, you can choose whether or not you wish to continue moving forward with the closing. If you decide to move forward, you can negotiate with the seller to have them pay to fix the issues.

6. Have the Home Appraised

Again, this is a service any major lender will require. An appraisal will determine how much money the property is worth, which keeps your lender from loaning you the wrong amount of money. It can also help keep you from overpaying for the loan.

This process is often separate from the home inspection, and you or your real estate agent will need to reach out to an appraiser to set it up.

7. Get Homeowners insurance

Before the home closing is complete, you’ll need to show proof that you’ve taken out a homeowners insurance policy on your new home.

Beyond this requirement, it’s simply a good idea to have a policy in advance. This type of insurance will help cover exterior and interior damage to your home, as well as the loss or theft of your belongings and any injuries that happen on the property.

You have multiple options available to you when it comes to finding the right policy and coverage, so allow yourself plenty of time to research your choices and weigh the pros and cons.

8. Do a Final Walk-Through

This step isn’t to be confused with the home inspection process above. A final walk-through happens in the days leading up to the closing, and both the seller and buyer should be present for it.

During this walk-through, you’ll have one last chance to inspect the property. Take the opportunity to check everything from the big-ticket appliances to the doors and windows. If the status of any part of the property doesn’t mind its agreed-upon condition, you’ll want to bring it up now.

9. Get Ready to Sign

Bring your favorite pen and flex your fingers: you’ll be signing a lot of documents and contracts!

Before you head to the closing table, prepare in advance by grabbing your proof of homeowners’ insurance, your home inspection reports, the paperwork for your home loan, a photo ID, and a copy of your contract with the seller. Your attorney will help guide you through the signing process from there.

Let Us Help Prepare for Your Real Estate Closing

There are few worse things than allowing your dream home to slip through your fingers on a technicality. Following the steps above can help you make the most of your real estate closing process, securing your new property for the future.

If you’re looking for further expert help during your closing, partner with our team! Our experts can help you review your contract, secure title insurance, and much more. Learn more about our services or reach out today for a no-obligation consultation.

Protecting Your Sale: A Comprehensive Guide to Title Insurance

/in ,

Buying a home is a big investment and one that takes careful planning and organization. You want to be sure you are buying the best home for your money.

It’s the reason you hire a real estate agent to guide you through the home search process. It’s the reason you have a home inspector go through the property with a fine-tooth comb. You hire a mortgage broker or go to your trusted financial institution because you want their expertise.

One part of the process that might surprise is the requirement to get title insurance. What is title insurance and why do you need it?

Read on to learn what you need to know about title insurance when you’re buying a house.

What Is Title Insurance?

Title insurance is a type of insurance policy used to protect you and the mortgage company. This insurance is different from other types of insurance you might get, like auto insurance or homeowners insurance.

Typically, when you purchase an insurance policy it protects you against possible events that might happen in the future.

Title insurance is different in that it protects you from things that have potentially happened in the past with the property you are buying.

When considering title insurance there is both lender’s title insurance and owner’s title insurance.  The lender’s title insurance protects the interest of the lender, mortgage company or bank. While the owner’s title insurance will protect the homebuyers interest in the property purchase.

Typically, the lender will require the homebuyer to get title insurance and it is covered under part of the closing costs.

Title Insurance Lingo to Know

To understand how title insurance works, it’s important to understand the terminology associated with getting title insurance. Let’s take a closer look at some verbiage you should know.

Title

The title is the legal document that is issued when you purchase a property. It has the legal description of the property in question.

Title Insurance

Title insurance is the insurance policy that protects your rights and the rights of your lender if there is a dispute related to the property.

Owner’s Title Insurance

The owner’s title insurance is issued to the homebuyer. As the policyholder, you’re also named as the beneficiary. The policy protects you if there are claims made on the property after the house title is transferred to you.

Lender’s Title Insurance

The lender’s policy, sometimes referred to as the loan policy, protects the lender who has a financial interest in the property. It offers them protection from possible financial loss if there are claims made on the property after the sale is complete.

Title Search

The title search is done before the title transfers from one owner to the next. It checks the legal ownership of the property. The goal is to identify anyone who might have a legal claim on the property. it also would identify, hopefully, anyone who might have a right to use the property.

Title Defects

Title defects help to identify through the title search and issues or threats that might be made on the property.  By looking at anyone who might have a financial or legal interest in the property, the title search can identify potential defects.

Encumbrance

An encumbrance would identify any possible limitation on the property getting purchased. An encumbrance might include things like a zoning law issue, an existing lease on the property, or easements or encroachments that exist on the property.

Easement

An easement gives another person the right or access to use a part of your property. An example might include a utility company might have an easement on the property. It gives them the legal right to use the property for a specified purpose, yet it doesn’t mean they have any ownership right.

Encroachment

Encroachments happen when something spills onto the property being purchased. This might include a fence, stand alone building or even a driveway. Encroachments can make property issues tricky and should be avoided if possible.

How Does Title Insurance Work?

The title insurance works similarly to other insurance policies you might be familiar with. If an issue arises with the title on the property you have purchased, the insurance company will work to address the issue.

They might investigate to see if the issue in question is legitimate. They might fight the issue in the courts on your behalf or the lender’s behalf.

If they can’t resolve the issue, they would be responsible for compensating you accordingly.

What Does Title Insurance Cover

There are several areas that are typically covered under title insurance.

One thing the insurance protects against is any unknown liens on the property. The previous owner may have had a lien put on the property that didn’t show up on the title search. This might be for unpaid taxes or unpaid child support, for example.

Often property passes from one person another through a will after someone dies. If there was an heir that was omitted when the property was inherited, they might show up wanting their portion of the property. In fact, it would be considered they still have some legal ownership in the property. The title company would need to resolve the ownership issue.

Mistakes happen and title insurance protects against possible errors in the public record.

There also could be a potential issue related to fraud. If the property was previously bought or sold fraudulently, the insurance protects against this.

Cost of Title Insurance

The good news about title insurance is that it’s a one-time cost. Typically, the lender’s insurance is slightly less than the owner’s title insurance.

Lender’s insurance is usually included in the closing costs paid at the time of the closing on the property.

The other part of the good news is that while you only pay once for the policy, it is good for the whole time you own the property. Most lenders require title insurance, while owner’s insurance can be optional.

 

Understanding Title Insurance

Buying a house is certainly exciting. Yet, it comes with some risks too. Understanding what is title insurance works to eliminate some of those associated risks that come from the history of the property.

If you have questions related to your property purchase, or need a real estate lawyer for a closing or to look at your title insurance issue, we can help. Contact us today so we can answer your real estate related questions.

Real Estate 101: Should I Get a Real Estate Development Lawyer?

/in , ,

Deciding to throw your hat into the real estate development ring means you will soon be juggling several things on your to-do list and putting out fires.

Whether you are looking to renovate an existing property or start from scratch and create a unique branding experience, you need help along the way. The process can take years from inception to completion and choosing a great team will lead to financial success.

One vital addition to that team is an experienced real estate development lawyer. Someone who understands not only real estate, but all the legal facets and hurdles involved in business management, permits, and financing.

Read on for signs to know when to get a lawyer for your new endeavor.

What Does It Take to Be in Real Estate Development

Not everyone is cut out to be a real estate developer, but they are the backbone of the commercial and residential market.

Many start their careers as real estate agents. They learn tips and tricks along the way and decide they want to grow and promote their community and their career.

Others fall into this type of work from the construction side of things. With their years of experience, they have trusted architects and resources and decide to journey out on their own.

If you have the drive to excel and a background in real estate, business management, marketing, and finances then you are on the right track.

Here is how a real estate development attorney can help get you started.

The Sale

Real estate development is a little more advanced than simply buying a home.

Acquiring property for both commercial and residential, or a combination, requires knowledge of the market, potential site surveys, and environmental impact studies.

You will also need to go through the due diligence process of the title examination.

There are multiple agencies involved and it is key to have one central contact to organize all the information. As the client, you need your interests protected with sound legal advice.

Plans, Plans, and More Plans

Planning for your real estate development is an intricate step in the future success of this endeavor. There are development plans, site plans, and of course, building plans that all have their specific requirements.

Are you renovating an existing property? Has a market analysis been completed? Are you going to combine residential space with retail space? All the parties involved must be on the same page and an attorney will keep the plans moving in the right direction.

Tax Laws

Tax laws are a legal minefield all its own. There are local, state, and federal guidelines and laws that must be followed. You have enough on your plate without trying to learn all the necessary tax codes.

Let your attorney work with your accountant to sort through all the details and then follow the lawyer’s advice.

Permits

Permits are another potential difficulty to overcome. For a development project, you will need both a land-use permit and a building permit.

The land use permit allows for the actual use of the land for your specific concept design. The approval depends on things like any rezoning issues and resolving conflict with the community residents or other businesses. This permit can be the hardest and take the longest to obtain.

The building permit opens the door for the actual start of construction. In this stage, engineers from the governing jurisdiction in question will review the building plans. They are looking to make sure all safety measures and building codes are up to date.

Your real estate attorney can walk you through all the legal processes in obtaining these permits. They can note potential pitfalls and make sure everything is in order and lines up for speedy approval.

Financing

Your dream project will never leave the planning stage without proper financial backing.

Finding investors or backers may be the easy part, but there are still many lines of fine print to read and spaces to sign. Multiple avenues of financing are used in such a project, and all the details must line up.

It is wise to let your attorney research all financing options. Do not rush through this step and jeopardize the success of the project.

Construction Contracts

Once the permits are signed and the financing is arranged, it is time to start seeing the actual fruit of your labor. It is time to build.

As with any construction project, there will be a contract and agreements. There should be clear direction on the scope of work, responsibilities, and payment. There will likely be delays and changes along the way as well.

Contingencies for modification and timeline must be addressed. All of these should be thoroughly reviewed by your real estate lawyer.

Leasing Agreements

Whether you are building a commercial/retail space, residential, or a mixed space, you will eventually need to draw up leasing agreements unless you are going to sell once completed.

These agreements are a solid base for the ongoing relationship with the development and the tenants. Do yourself a favor and make sure all the bases are covered.

An attorney can help with the correct terminology, current leasing laws, and any special conditions that could be involved in this development. Don’t have any lease signed without oversight and recommendation from your lawyer.

Potential Disputes

From the initial stage of planning to filling the space with tenants, there will be disputes that arise from time to time.

Some can be handled quickly with no legal action. However, unforeseen events may cause a person, or persons, to challenge you and file a lawsuit.

For as much as you know about real estate, you should leave the legal issues and disputes to the attorneys.

If you have secured a real estate development lawyer who has been with you every step of the way, they will be familiar with your vision and also knowledgeable of all your dealings. They will be able to properly and swiftly handle any legal disputes that crop up.

A Trusted Partnership

A successful real estate development strategy requires dedicated teamwork.

One key component of that team is an experienced real estate attorney. From the initial planning stages to tenant management or resale, we will be with you every step of the way.

For more information on how our services can help you fulfill your dream, please reach out.

The De Bruin Law firm offers a wide range of legal services to clients in Greenville, SC and the surrounding upstate. Our experienced attorneys can help you with legal matters in the areas of business law, criminal law, estate planning, and real estate law.

Our Services

Quick Links

    Contact Us