Real Estate Blog

Residential Real Estate Closing Process

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The closing process must be navigated efficiently and properly to consummate a residential real estate closing in South Carolina.  Our Greenville residential real estate attorneys guide our clients through the entire buying and selling process skillfully navigating potential pitfalls that can unravel a successful transaction.  A review of some of these pitfalls reveals the importance of legal representation during the entire residential real estate transaction.

Real Estate Contract

After a buyer has identified a property for purchase, an offer will usually be made in the form of a contract.  Buyers and sellers both need to understand the importance of this offer-acceptance process.   Both parties are bound by the terms of the contract once the offer has been formally accepted.  While many parties focus entirely on the price, the document will include a multitude of terms and conditions that should be understood and considered.

Contract Changes

If the seller is represented by an agent after receiving an offer, or either party has an realtor after receiving a counter-offer, the agent might suggest changes to terms other than the price to protect a client’s interests.   The realtor also can explain the rest of the terms because this contract will govern the entire real estate transaction.  After the parties have signed the contract, they are both stuck with the terms and conditions unless they mutually agree to changes in writing.  Since the other party knows that the contract is binding, he or she might require additional money to be paid to secure any modifications.

Buyer and Lender Contract

The buyer usually will have to agree to another contractual relationship with a lender.  This contractual relationship based on a promissory note and security agreement might include unforeseen costs beyond the down payment and loan payments.  These fees, which could include survey fees, loan fees, interest and tax escrows, insurance premiums, and closing attorney fees, can add up, so unwelcome surprising can be a problem.  The lender should explain these fees and other terms.  However, the advantage of having your attorney review and explain any issues and fees will be apparent if you know anyone who experienced sharp lending practices during the mortgage meltdown.

Settlement Agent and Title Search

If you are the buyer, your attorney also will handle the “title search,” which is critically important to protect the buyer’s interests.  This process will be conducted to identify any title defects.  At some point during the process, a survey usually will be conducted to confirm that the boundary description in the public records conforms to the property boundaries.  The lender typically will require title insurance that normally will be secured by the buyer’s attorney.  Title insurance confirms that the lender has a proper mortgage lien that is not impaired by any title defects.

The closing attorney will supervise the formal execution of the relevant documents at the closing. Both parties benefit from having their agent help guide them through the entire process.  Potential roadblocks to a residential purchase or sale can derail the transaction at every stage of the process.  For example, a party might use the other party’s failure to comply with a term or condition of the contract to get out of the transaction.  Even more concerning, unrepresented parties to a residential real estate transaction might complete the sale only to encounter boundary disputes, onerous loan terms, hidden costs, undiscovered property defects, and other issues that impact a party’s desire to complete the transaction or the value of the property. In South Carolina however, a licensed attorney is required to handle and supervise many of the legal aspects involved in transferring property. If the transaction does run into trouble, our Greenville real estate closing attorneys have the experience to assist you in getting out of the deal or to push it forward.

Real Estate Transactions

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Real estate transactions are not only major purchases or sales for most people but are actually major life events. When people make the decision to sell their home or to purchase a new one they are laying a lot on the line, which means that the experience can be emotional and stressful as well. The best real estate professionals understand this reality and work to provide their clients with expert advice.

At De Bruin Law Firm, we understand how important our role in real estate transactions is and we strive to make the process of purchasing or selling a home run as smoothly as possible.

Effective communication

Part of our role in real estate transactions is to ensure that we are coordinating with all of the people necessary to make the transaction go forward. This means communicating with the other attorney, with agents, home inspectors, lenders, insurance companies, and others. There are many people involved in the process of buying and selling real estate, and it is important to have someone orchestrating the communications between all of these people in order to ensure that everything needed is acquired in time for the closing.

Title searches and insurance

When we serve as the closing attorney, we look carefully into the title for the property being bought and sold. It is important to know that there is nothing that will impact the new buyer’s ownership of the property. We also work with title insurance companies to arrange title insurance which provides the buyer with peace of mind and is necessary from the lender’s perspective to ensure that they have the first lien on the property in question.

Closing the deal

The day of the closing is where the transaction happens. When we perform real estate closings, we ensure that the proper documents are present and that the funds are being transferred to the correct places. Closings are a big deal to clients. When they close on their purchase or sale, the decision they made finally becomes a reality. We want our clients to view that day with excitement. They are starting something new, and they should walk away feeling happy and ready to take on the challenges ahead of them, such as moving into a new home. We understand that our clients have a lot on their minds beyond the documents that we handle, and we want them to feel able to focus on the positive aspects of the process, and not on the closing paperwork.

By putting in the time and energy to ensure that we have everything we need the day of the closing and that the transaction goes well, we can provide clients with a positive experience. When they walk away from the closing they should know that everything has been handled in a professional and organized way. Our efforts to provide a seamless transaction benefits not only the client but the agents as well because the clients will walk away having had a pleasant closing experience.

If you are buying or selling a home in South Carolina, contact De Bruin Law Firm at 864-982-5930 to discuss how our dedicated attorneys can help make this experience a positive one for you and your family.

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How Much Does A Real Estate Closing Attorney Cost?

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There are a number of expenses involved with buying or selling a piece of property. There’s the new mortgage, taxes, and insurance; the cost of making any necessary repairs to the property to prepare it for sale; realtor fees; and a variety of other expenses. In addition, there are fees involved with the final step of the transaction, which is called the closing. At the closing, the seller conveys ownership of the property to the buyer.

Real Estate Closing Settlement Fees

A South Carolina real estate closing attorney typically charges a flat fee for conducting the closing. In most cases, the fee is several hundred dollars, and in some situations, it may be over $1,000. Many real estate clients only see the real estate closing attorney at the closing itself and may wonder why these fees are in place. However, there is quite a bit of work that closing attorneys must do to prepare for the closing and ensure that the property is being properly transferred from the sellers to the buyers.

First, the closing attorney will conduct a title search to check the status of the property. The title search will confirm that the seller has full ownership of the property and is in a position to transfer it to the buyer. The title search will also show if there are any easements, encroachments, or other restrictions on the property. The attorney will also prepare an opinion on the title that is presented to a title company. This document will be used in the event that the buyer wants to purchase title insurance.

Real Estate Closing Attorney Responsibilities

Closing attorneys are also responsible for facilitating communication between a number of parties necessary to the finalization of the deal. The closing attorney may need to discuss the sale with lenders, real estate agents, surveyors, any current mortgage holders, tax offices, homeowners associations, and a variety of other individuals. The closing attorney must communicate with these individuals to make sure all of the details involved with the sale are accurate and also to ensure that the closing is completed on time.

During the closing itself, the closing attorney will explain the documents to the parties as they sign them. There are a number of documents that must be signed at a closing, including the deed, settlement statement, loan documentation, a promissory note, and other documents as required by law. The closing attorney is available to answer any questions about these documents that the parties may have.

After The Closing

A closing attorney’s work does not end when the parties leave the office. After the closing has been completed, the closing attorney will update the title to the property on local registry of deed websites and will record the deed. In addition, the closing attorney is responsible for disbursing fees, including brokerage fees, taxes, loan payoff amounts, seller proceeds, insurance premiums, and inspection fees.

After the transaction has been completed, if any issues arise with the transfer of the property, the closing attorney may be consulted if necessary to help resolve the issue.

Clearly, the real estate closing attorney does not simply sit with the parties at the closing and have them sign documents. The closing attorney’s guidance is a necessity to ensure the transition of ownership goes smoothly and that the parties understand the legal requirements of the deal.

Let us manage your closing

The real estate attorneys at the De Bruin Law Firm are experienced in a variety of real estate transactions, including residential, commercial, refinancing, and equity loan matters. To schedule a closing with our real estate attorneys, call (864) 982-5930.

If you’re considering buying or selling real estate in South Carolina or are already negotiating a contract we’d love to help you close on your transactions.

Frequently Asked Questions About Title Insurance

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At The De Bruin Law Firm, we are experienced and knowledgeable real estate attorneys. We often help our clients when they are buying a home to ensure that the closing process goes as smoothly as possible. One aspect of what we do as real estate closing attorneys is help our clients with a title search and title insurance. If you are a first time home buyer, you may not be aware of everything related to real estate titles; in fact, this is an area about which we get many questions. To help you, we have compiled a list of frequently asked questions about titles.

What Is A Title?

A title is a document that serves as evidence of an owner’s right to possess a property. It’s possible for someone other than the owner to have a legal right to the property in question; in this case, the other person may be able to stake claim over the property or demand use of it.

What Is A Title Search?

A title search entails examining the historical records of a property, including deeds, property and name indexes, court records, and other documents. This search serves to confirm the seller’s right to transfer ownership to the buyer, and to uncover any other claims, defects, burdens, or rights to the property.

What Issues Can A Title Search Uncover?

A title search could reveal a number of issues with the title, including title defects, liens, encumbrances, or restrictions. This could include unpaid taxes, unpaid mortgages, legal issues with the seller, and restrictions on how to use the land.

Are There Potential Issues With The Title That A Title Search Won’t Reveal?

Yes. There are certain hazards that a title search might not reveal. For example, if a previous owner did not reveal his marital status, his spouse could have a legal claim to the property. Other examples include forgery, fraud, defective deeds, and clerical errors. It is possible for these issues to arise after you have already purchased your home, jeopardizing your ownership rights.

What Is Title Insurance?

Title insurance is a type of insurance policy that protects you against the loss if any of these issues present themselves after you have purchased your home.

What Happens If A Claim Is Filed Against My Property?

This varies depending on the claim. In the worst case scenario, you could lose your property and still be liable to pay off your mortgage balance. This is an extreme occurrence that doesn’t happen in most cases, but even a small claim will cost you money, time, and stress, and may require you to hire a lawyer.

If A Claim Does Arise, How Does Title Insurance Protect Me?

If a claim against your property is made, title insurance assures you a legal defense and will pay all court costs. If the claim proves to be valid, you will be reimbursed for your loss (up to the face amount of the title insurance policy).

Isn’t The Deed The Proof Of Ownership?

Actually, no. A deed is a document through which ownership rights to property are transferred, but it is not proof of ownership, and does not eliminate another’s rights to the property. Additionally, a deed does not show liens or claims against the title.

What Are The Different Kinds Of Title Insurance?

There are two types of title insurance policies: a loan policy and owner’s policy. The loan policy protects the lender in the property as security for the outstanding balance of the buyer’s mortgage. The owner’s policy protects the buyer’s investment in the property.

How Much Does Title Insurance Cost?

While it varies, in general, title insurance costs one percent or less of the total cost of the property. Additionally, a title insurance is not paid annually, like other types of insurance; it is one upfront cost paid at closing.

How Long Does My Title Insurance Coverage Last?

Title insurance coverage lasts as long as you or your heirs have an interest in the property, and in some cases, beyond that.

When buying real estate, it is in your best interest to hire an experienced attorney. As real estate attorneys in South Carolina, we can help you during your real estate closing. Interested in our legal services? Contact us today to learn more about how we can help with your real estate closing.

How Do I Sell My Home If There Is A Lien On The Property?

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Liens are designed for lenders to ensure that home buyers are more likely to make payments in a timely manner and do not default on them. If a debtor fails to pay the lender, the lender may sue the debtor, resulting in a lien on the property. If the homeowner should wish to sell the home, this can cause issues. In this case, a skilled and experienced real estate lawyer may be your best resource.

Why Liens Matter

Liens are attached to the property, meaning that if a debtor should transfer ownership to another party, the debt does not follow them. However, liens are present on the property title. Before a real estate closing, a mortgage company will require a title search. Should outstanding liens appear on the property, it is likely that the mortgage company will refuse to finance the purchase. Additionally, the lender who owns the lien can seize the home as long as the lien is valid. This may mean that the new homeowner must pay off the previous owner’s debt to keep the property. Most people will not want to take that risk, so selling a home with a lien may be very difficult.

Paying Off The Lien

If you are selling a home that has a lien on it, it is best to repay the debt before selling. Once the lien is paid off, the lien holder will issue a Certificate of Release. This acknowledges that the lien is no longer valid, as the debt has been paid. Upon receiving the certificate, the debtor files it with the Secretary of State’s office. The lien will no longer appear in title searches once this document has been filed, making it easier to sell your home.

Expiring Liens

Sometimes, the homeowner will choose to wait until the lien expires instead of paying it off if it is financially easier. There are several types of liens, and they expire at different times. Federal tax liens are valid for ten years, after which a homeowner can request a Certificate of Release. A judgment lien will expire once the original judgment expires, but a creditor could renew a judgment before its expiration. Therefore, relying on the lien to expire is not always a good idea.

Mortgage Liens

Mortgage liens are different than other liens. Should an individual sell the home before paying off the mortgage, the proceeds of the sale will go to paying off the original mortgage, should the house sell for more than the owner owes. Mortgage liens do show up in title searches, but do not count against the homeowner and would not complicate the sale process the way other liens would.

Solutions

If there is a lien on your property and you intend to sell it, you have a couple of options. Typically, a debtor must pay off the judgment lien before it is removed, but a lender may voluntarily remove the lien if the debtor offers collateral or sets up a payment plan. For federal tax liens, the IRS will allow debtors to apply for a lien release when trying to sell your home, if the individual submits their application at least 45 days before the sale of the home. This will release the lien on the home, but remains on other property, and the individual will still owe the debt.

At The De Bruin Law Firm, we have experienced real estate lawyers you may be able to help you with your questions about liens and other real estate issues. Contact us today to learn more about our real estate lawyer services.

4 Tips For Closing On A New Home

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When you buy a home for the first time, you may feel overwhelmed by the process. Though this is an exciting time, there are also many different steps and factors to consider along the way. Fortunately, you have resources at your disposal that can help your real estate closing go as smoothly as possible. Read on for tips on how to make your real estate closing easier.

Discuss With Your Attorney

When you are closing on your new home, it’s wise to hire a real estate attorney. An attorney who is well-versed in the real estate closing process can give you the guidance you need to make the process as seamless as possible. If you are anxious about closing on your home because you don’t know what to expect, there is no better resource than a real estate attorney. Your attorney will walk you through the entire process, including everything that is required of you as the buyer.

Don’t Forget The Details

When it comes to real estate, there is so much paperwork involved, it’s easy for it to slip through the cracks. Whether it’s for your attorney or your lender, you must promptly and accurately fill out any necessary forms. Otherwise, your closing could be delayed, maybe even for days at a time. When you find out you must complete paperwork, immediately fill it out, and triple check to ensure that all of the information is correct.

Follow Up On The Inspection

It’s likely that your new home was inspected within 10 days of the accepted offer. If any issues arose during that time, you likely negotiated with the seller to fix these problems. Follow up regarding these issues before your closing to ensure that they are addressed promptly.

Make A Schedule

Now that you know when your closing is, it is pertinent to put a plan of action in place. When will you be done packing? Have you hired movers? Do you need to transfer utilities to your new home? While these issues won’t directly affect the closing, taking care of these little details promptly will free your mind from the distraction, and allow you to focus on the closing. Schedule all of these little details as soon as you can.

When you need a real estate attorney in South Carolina, contact The De Bruin Law Firm to help you with your real estate closing. Call us today!

Why Do I Need Title Insurance?

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Buying a new home is an exciting but overwhelming process. There are many aspects of homeownership you must learn, and navigating all of the legal requirements may be a struggle for you. If you are buying a home, you may find a real estate attorney helpful. At The De Bruin Law Firm, we offer real estate law services that could aid you as you buy your new home. One aspect of homeownership that we may help you with is title insurance. While you are likely aware that there are a variety of types of insurance your home may require, title insurance is a very important but much misunderstood type of home insurance.

What Is Title Insurance?

The title of a home is what gives you legal rights to occupy the property. The title could include limitations due to claims others have asserted over the property. This could limit how you can use the property, and may cause financial loss. When you purchase title insurance, it protects against these types of issues with your title. Title insurance is purchased as a one-time premium, as opposed to other types of home insurance, which require annual premiums. This is because it protects against existing hazards instead of offering protection for hypothetical future issues.

Types Of Title Insurance

There are two general types of title insurance:

  • Lender/mortgagee coverage: Most lenders require title insurance. This protects their investment and allows them more flexibility to lend mortgage money.
  • Owner’s coverage: Owner’s insurance is not required, but is recommended. It lasts as long as you or your heirs have interest in the property, which may be even after you have sold it.

What Does Title Insurance Insure?

The title insurance process starts by research into the public records of the property in question before closing. This reveals any pertinent information to determine whether insurance is possible. This could reveal title hazards, such as outstanding mortgages, deeds or trusts with incorrect or misspelled information, pending legal action against the property, and more. With this knowledge, any issues may be resolved to prevent issues in the future. However, even with these preventative measures in place, other title defects may present themselves, perhaps due to mistakes in the public records or other issues. Title insurance protects you financially in the event of these issues presenting themselves after closing.

At The De Bruin Law Firm, we are experienced in a variety of title-related services, including title examinations and title insurance policies. Contact us today to learn more.

5 Essential Tasks Of A Real Estate Closing Attorney

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Whether you are buying or selling real estate, it is important to have an attorney for your real estate closing.  A real estate attorney ensures that everyone understands the complex legal process that real estate closings are, and that everything is above board. In order to better protect consumers during the closing process, South Carolina requires many aspects of a real estate purchase and refinance closing to be completed under the supervision of an attorney. For a more specific picture of what exactly a real estate attorney does during real estate closings, read on below.

Title Examination

A clear property title is essential for the buyer and lender in a real estate closing. Once the purchase agreement has been received, we can begin examining the title. For the sake of the buyer, we will evaluate the restrictions, encroachments, easements, and whether the title clearly allows the seller to transfer it to the buyer. We will then identify if there are existing mortgages on the property that must be satisfied in order to transfer the title over. For the sake of the lender, we will create an overview of any judgments, mortgages, or liens in existence that must be settled before closing. Any concerns about the status of the title are addressed during this process.

Title Insurance

Title insurance is important because if there is a problem with the title in the future, it protects the buyer and the lender. After the title examination, your real estate attorney from De Bruin Law Firm writes an opinion about the title for the title company so they can issue a title binder, which is necessary for obtaining title insurance. Title insurance is absolutely essential for the lender because they must assure that it is in the first lien position of the property, but it is optional for the buyer. However, it is best to go through with title insurance, given that it is relatively inexpensive and protects the buyer’s rights to the property.

Coordination

The real estate closing attorney also coordinates all of the parties involved in the closing. This means that the attorney must communicate with the buyer, seller, and lender, and any additional players, such as brokers, surveyors, the homeowner’s insurance company, home inspectors, contractors, homeowners’ associations, and more. The closing attorney must coordinate all of these parties in order to ensure that the closing occurs in a timely manner. Throughout the entire process, the closing attorney is necessary for communication, but is especially crucial when preparing the settlement statement and when confirming the dates and amounts of money needed for closing.

Review Of Documents

The day of closing, the real estate closing attorney must be present to go over the various documents. The closing attorney can offer explanations for any confusing documents, such as the deed, settlement statement, and loan documentation.

Record And Disbursement Of Funds

Finally the closing attorney must close the transaction and distribute all the funds. After reviewing all the documents, the real estate closing attorney will make a final review of the title and deed, then issue the final opinion on the title and pay the title company. The closing attorney will then distribute all of the funds in the transaction, such as brokerage fees, county taxes, homeowner’s insurance premiums, inspection fees, seller’s proceeds, and the attorney fees.

Clearly, a real estate attorney is essential for a real estate closing. When you need a real estate attorney to help you buy or sell real estate in South Carolina, De Bruin Law Firm has the experience you need. Contact us today.

3 Issues That May Come Up During A Refinance

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Refinancing a home can be a really big task that has the potential to get complicated quickly. There are many different reasons a homeowner might want to refinance from wanting to lower the interest rate on the loan, remove the PMI, or receive an infusion of cash to improve the house. Even in the case of a refinance, an attorney is required for many of the aspects involved with the closing in South Carolina. Contacting a closing attorney early in your refinance process may be beneficial. Let’s take a look at what these issues are and why you might want to call De Bruin Law Firm for assistance during your refinance.

Timeliness

Whether buying a new home or refinancing your existing home, having all of the evaluations and paperwork complete by specific deadlines is essential. What can happen is banks will continue to ask for current paperwork as they push out your refinance up to even 90 days. If your bank is giving you the run around, it could be beneficial to bring in a real estate attorney to protect your investment and time.

Low Appraisal

Receiving a low appraisal can also be a really big problem when refinancing. The appraisal dictates what the bank is willing to do in terms of relieving you of the PMI or cashing out for improvements. There are several steps that can be taken to escalate this problem, which is often why you need to consult with a real estate lawyer.

Negotiations

Having a good attorney on your side means that if things escalate, negotiations need to happen. A real estate lawyer can help avoid disputes and protect the borrower’s rights throughout the process. If you’re thinking about getting your home refinanced contact Bryan De Bruin at the De Bruin Law Firm to handle you closing.

3 Reasons To Hire A Lawyer For Your Commercial Property Purchase

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Buying commercial real estate, much like buying residential real estate, is a large investment. There are many complexities and intricate details that are involved with the purchase, along with the large financial risk. Having a real estate attorney on your team throughout the process provides benefits and protection to you as the buyer. Here are three reasons you would want to hire a real estate attorney when purchasing commercial property.

Unique Details

The purchase of commercial property is rarely straightforward. Problems that could come up include corporate ownership, leaseholds, tenant claims, or environmental issues. These are not easy to resolve and need the help of a real estate attorney that can work through the difficult legal issues that will arise.

Negotiations

The number one benefit to enlisting the help of a real estate attorney is their strong negotiation tactics. Because of the large investment, negotiations can become emotional. Utilizing the skills of a third party who knows the intricacies of the law and has a fiduciary responsibility to their client means that you will get the best resolution possible to benefit you as a buyer.

Reduce Risk

Unlike renting to individual tenants, which can be done with standard legal leases, negotiating long term leases or purchasing property that may have risk associated with them needs the help of a real estate lawyer. The lawyer is able to protect your finances and look into any idiosyncrasies with the property. This reduces your overall risk and improves the overall transaction.

We pride ourselves on our ability to provide the quality service throughout all aspects of your real estate closing. If you are considering buying or selling real estate in South Carolina or are already negotiating a contract we’d love to help you close on your transactions.

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.

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