• Facebook
  • Twitter
  • Instagram
  • LinkedIn
  • Youtube
  • Rss
16 Wellington Ave•Greenville, SC 29609 (864) 982-5930
De Bruin Law Firm
  • Home
  • About Us
    • Testimonials
  • Attorneys
    • Aaron De Bruin
    • Nicholas Brausch
  • Legal Services
    • Business Law
      • Mergers and Acquisitions
      • Business Formation
    • Real Estate
      • Title Insurance
      • Real Estate Investors
      • Agents and Brokers
      • Commercial Real Estate
      • Real Estate Closing
      • South Carolina Real Estate Contract Review and Negotiation Lawyers
    • Estate Planning
      • South Carolina Wills
      • South Carolina Incapacity Planning Lawyers
      • South Carolina Trusts
      • South Carolina Probate
  • Legal Articles
  • Contact Us
  • Message Us
  • Menu Menu

Tag Archive for: real estate

What’s on a Real Estate Closing Statement?

March 23, 2022/in Real Estate, Resources

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!

https://debruinlawfirm.com/wp-content/uploads/2022/03/handshake-business-hand-scaled.jpg 1025 1531 Bryan De Bruin https://debruinlawfirm.com/wp-content/uploads/2025/04/logo.png Bryan De Bruin2022-03-23 14:18:562025-06-30 14:22:06What’s on a Real Estate Closing Statement?

How Can a Real Estate Lawyer Help You?

March 16, 2022/in Real Estate, Resources

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.

https://debruinlawfirm.com/wp-content/uploads/2022/03/real-estate-lawyer-scaled.jpeg 1025 1538 Bryan De Bruin https://debruinlawfirm.com/wp-content/uploads/2025/04/logo.png Bryan De Bruin2022-03-16 14:17:422022-03-16 14:17:42How Can a Real Estate Lawyer Help You?

Everything You Should Know About Real Estate Law

December 14, 2021/in Real Estate, Resources

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.

https://debruinlawfirm.com/wp-content/uploads/2021/12/Real-estate-agents-agree-to-bu-scaled.jpg 1025 1538 Bryan De Bruin https://debruinlawfirm.com/wp-content/uploads/2025/04/logo.png Bryan De Bruin2021-12-14 14:36:232021-12-14 16:47:36Everything You Should Know About Real Estate Law

Do I Need a Real Estate Attorney? 6 Reasons to Hire One

August 28, 2020/in Real Estate, Resources

So, you are ready to jump into the world of homeownership. You’ve been saving for your down payment. You’re carefully thinking about what’s important to you in the house you choose.

You have a real estate agent who’s been showing houses and you think you’ve found the one. You also have the inspector and the mortgage broker all doing their part in the process to get you into a house.

Now, you’re wondering do I need a real estate attorney, too? What does the real estate attorney do that is different from the other players involved in the process?

And if you’re pinching pennies, you might be wondering do I really need to pay another person to get me into this house?

Read on to learn all about real estate attorneys and the 6 times when it makes lots of sense to hire one.

What Does a Real Estate Attorney Do?

A real estate attorney’s involved in the legal actions connected to real estate. They might get involved as you begin the process of buying a piece of property. The attorney might also become involved if there are disputes connected to the purchase.

There are two types of real estate attorneys.

One type would handle commercial real estate transactions. Often this means they are dealing with construction, development, and zoning related issues.

The other type of real estate attorney will deal with residential real estate. This means they would be involved in the many steps of buying or selling a home.

There is one unique feature of working with a real estate attorney, whether it’s commercial or residential. They do not work for commissions like a real estate agent or mortgage broker might.

Because they don’t have a vested interest in whether a sale goes through or not, they can give sound objective advice to those they represent.

1. When You Must Hire a Real Estate Attorney

You always want to consider hiring a real estate attorney if you’re worried you don’t understand something or you want to make sure the legalities are in place.

There are many states across the US that require a real estate attorney to be present with making a sale of a property. These states include:

  • Alabama
  • Connecticut
  • Delaware
  • District of Columbia
  • Georgia
  • Kansas
  • Kentucky
  • Maine
  • Maryland
  • Massachusetts
  • Mississippi
  • New Hampshire
  • New Jersey
  • New York
  • North Dakota
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Vermont
  • Virginia
  • West Virginia

Whether you are buying real estate or selling it, you must have a real estate attorney through the transactions in these states. Of course, it’s a good idea in the states that don’t require it too.

2. Commercial Real Estate Needs for a Real Estate Attorney

Commercial real estate is unique and most people have a pretty limited experience level with it. It can be very costly to buy commercial real estate and it comes with some risk.

For this reason, if you’re involved in buying commercial real estate, it’s a smart idea to get a real estate attorney to guide you through the process.

A lawyer advising you on commercial real estate might help with:

  • Environmental concerns
  • Zoning issues
  • Liens
  • Easements
  • Legal description accuracy
  • Structural conditions
  • Rents derived from the property

If you are purchasing a piece of property that you intend to lease out for long periods of time, you want to make sure you have the right contracts and lease agreement so you are protected.

3.  You’re Represented

This has already been mentioned, but the importance can’t be stated too clearly. Whether you are buying a commercial piece of property or a residential piece of property, the real estate agent is there for you.

Sure, you might really like and trust your real estate agent. But the truth is they don’t make any money if they don’t make a sale.

Your real estate attorney has no vested interest, either way, to make sure the sale goes through. They are just there to make sure the sale is done in a legal manner and that your interests are represented, whether you buy the property or not.

4. Real Estate Contracts and Documents

The real estate attorney’s role is to make sure you are advised and protected and to assure that all documents connected to the sale of the property are done correctly.

They will evaluate the contracts leading up to the sale. Their role will also be to check over the documents that are part of the sale of the property. These documents might include:

  • Property deed
  • Legal descriptions
  • Mortgage loan documents
  • Closing documents
  • Title and the title insurance policy

Any errors in these documents can be costly and can delay the sale of the property.

5. Give Advice on Rights

In a perfect world, you find a great piece of real estate. You make an offer and agree on a price. The paperwork gets done and bam, you are a homeowner.

Of course, buying real estate often comes with more hiccups than that streamlined process.

The property may have issues you need to address. Maybe there is asbestos, lead paint, or even has termites. In some cases, you might decide to walk away and not buy the property.

In other cases, you might change your offer and renegotiate. Your real estate attorney can help with the legalities, especially when there are complications to the sale.

This would also be true if litigation or disputes arise after the sale’s finalized.

6. Financial Documents From the Sale

Finally, the real estate attorney can be responsible for making sure all the financial documents are accurate for the sale. You don’t want to be charged the wrong rate or pay more fees than necessary.

Understanding When Do I Need a Real Estate Attorney

Still, wondering do I need a real estate attorney?

If you are about to buy a piece of real estate it makes sense to have your interests protected by hiring a real estate attorney to guide you and protect your legal interests.

If you are buying real estate and are looking for a real estate attorney, we can help. Contact us today to set up a consultation to go over your needs.

https://debruinlawfirm.com/wp-content/uploads/2020/08/Real-estate-law-scaled.jpg 1025 1538 Bryan De Bruin https://debruinlawfirm.com/wp-content/uploads/2025/04/logo.png Bryan De Bruin2020-08-28 19:43:422020-08-28 19:44:00Do I Need a Real Estate Attorney? 6 Reasons to Hire One

7 Questions to Ask Before Choosing a Real Estate Attorney

June 22, 2020/in Real Estate, Resources

With over 5 million residential real estate transactions per year, people can become overwhelmed with the process of buying and selling. It might be time to get a real estate attorney to assist you.

If you want to ensure you’re legally safe, then you’ll need to vet the attorney properly. Make sure you ask these questions before making the final hiring decision.

1. How Much Experience Do You Have?

The attorney’s experience level is paramount. A longer tenure in the field generally translates to a broader understanding of various real estate scenarios and a greater ability to navigate unforeseen challenges. When an attorney has been practicing for many years, they’ve likely encountered a wide array of cases, from straightforward property transactions to highly contentious disputes. This exposure arms them with practical knowledge that goes beyond what’s written in textbooks.

Consider the nature of your real estate needs. Are you embarking on a relatively simple process, such as buying or selling a standard residential property? Even in these seemingly simple situations, a seasoned real estate lawyer can be invaluable, guiding you through the intricacies of contracts, disclosures, and closing procedures. They can identify potential red flags in agreements, ensuring your interests are protected and preventing future legal headaches. For instance, an experienced attorney can spot ambiguous clauses, hidden liabilities, or unfavorable terms that an untrained eye might miss, ultimately saving you significant time, money, and stress. They can also advise on necessary due diligence, such as title searches and property surveys, to ensure a clean transaction.

However, if your situation is more complex—involving a potential lawsuit, a boundary dispute, or allegations of fraud—the importance of an experienced attorney escalates dramatically. Imagine you’ve purchased a home, only to discover that the home inspector and selling agent knowingly misrepresented the property’s condition, concealing major structural defects or environmental hazards. In such a scenario, you’ll need a highly experienced attorney to effectively litigate on your behalf. They will understand the nuances of real estate fraud, consumer protection laws, and contract breaches, enabling them to build a strong case. Their experience will also inform their strategy, from gathering evidence and negotiating settlements to representing you vigorously in court. They can anticipate the opposing party’s tactics and develop counter-strategies, maximizing your chances of a favorable outcome.

Beyond simply having years under their belt, inquire about the attorney’s specific experience with cases similar to yours. A general real estate attorney might have broad experience, but if your case involves, say, commercial lease disputes, you’d ideally want an attorney with a proven track record in that niche. Their familiarity with similar situations means they can anticipate potential obstacles, offer relevant advice, and streamline the legal process. No matter your current or anticipated real estate situation, thoroughly vetting an attorney’s experience is the first critical step in securing competent and effective legal representation.

2. What Are Your Fees?

Understanding an attorney’s fee structure upfront is crucial for managing your budget and avoiding unpleasant surprises. Real estate transactions often involve significant financial outlays, and legal fees are an additional, but necessary, expense. The cost of legal representation can vary based on several factors, and a clear understanding of these variables will help you make an informed decision.

Some of the most common factors influencing an attorney’s fees include:

  • Type of real estate transaction
  • Size of the deal
  • Lawyer’s current schedule and demand

For straightforward tasks, such as having a lawyer review paperwork to ensure accuracy and avoid future legal issues, you might encounter a flat fee. This fixed charge provides predictability, allowing you to budget precisely for that service. For example, an attorney might charge a flat fee of a few hundred dollars to review a standard residential lease agreement or a basic purchase contract.

Conversely, for larger, more complex deals, such as commercial property acquisitions, intricate development projects, or litigation, attorneys typically charge an hourly rate. These rates can range significantly, often between $100 and $400 per hour, or even higher for highly specialized or senior attorneys in major metropolitan areas. It’s essential to understand what is included in this hourly rate (e.g., phone calls, emails, court appearances) and how time is tracked.

For attorneys who are in high demand and whose expertise is highly valued, you might encounter a monthly retainer or an upfront fee. This payment reserves a portion of their time for your case, ensuring their availability and commitment. A retainer acts as a down payment against future hourly charges, with the attorney drawing from this fund as they work on your case. Once the retainer is depleted, you would typically be billed for additional hours.

In some specific real estate situations, particularly those involving a sale or purchase where the attorney’s involvement is directly tied to the successful completion of the transaction, an attorney might agree to a percentage cut of the sale or purchase price instead of upfront payment or hourly billing. This arrangement aligns the attorney’s financial success with yours, incentivizing them to secure the best possible outcome. However, this is less common for standard transactional work and more often seen in cases where the attorney’s role is contingent on the deal’s completion, or in certain types of litigation where a contingent fee might be negotiated.

Regardless of the fee structure, always obtain a written fee agreement outlining all costs, billing practices, and potential additional expenses (such as filing fees, court costs, or expert witness fees). Having this clarity upfront will prevent misunderstandings and financial disputes down the line, allowing you to focus on the legal aspects of your real estate matter with peace of mind.

3. Can You Give Me a Plan of Action?

When you engage a real estate attorney, it’s often because you’re navigating unfamiliar legal territory. While you may not be an expert in real estate law, you should still expect your attorney to provide a clear and comprehensive plan of action. A competent lawyer will not only tell you what they intend to do but will also explain why each step is necessary and what the potential implications are. This transparency is crucial for building trust and ensuring you remain informed throughout the process.

A well-articulated plan of action should outline the key stages of your case or transaction. For instance, if you’re buying a home, the attorney’s plan might detail the steps from contract review and negotiation, through due diligence (e.g., title searches, inspections), to closing procedures and post-closing follow-ups. For a more complex dispute, the plan might include initial investigation, discovery, negotiation, mediation, and, if necessary, litigation. The attorney should break down these stages into understandable components, avoiding overly technical jargon where possible. They should also discuss potential timelines and what milestones to expect.

Importantly, a robust plan of action should be accompanied by an open line of communication. Real estate matters, like life itself, rarely unfold precisely as planned. Unforeseen issues can arise, market conditions can shift, or opposing parties might introduce new elements. Therefore, it’s imperative that your attorney keeps you updated on any developments, changes, or challenges. Ask the lawyer about their preferred methods of communication (e.g., phone calls, emails, client portals) and their expected response times. You should feel confident that you can reach your attorney or their support staff when needed, and that your inquiries will be addressed promptly. Most reputable law firms understand the urgency often associated with real estate matters and aim to return calls or emails within one business day. For situations requiring immediate attention, many firms provide an emergency contact line or a clear protocol for urgent communications.

Beyond just updates, the attorney should be willing to explain the rationale behind their decisions and any legal advice they provide. You should never feel like you’re simply being told what to do without understanding the reasons why. This collaborative approach empowers you to make informed decisions and feel more in control of your legal journey. A lawyer who can clearly articulate their strategy and maintain consistent communication demonstrates their commitment to your case and their professionalism.

4. Are You the Only Real Estate Attorney on the Case?

The question of who will be directly handling your case is highly significant, particularly when considering larger law firms. While a larger firm might offer extensive resources and a deep bench of expertise, it’s essential to clarify whether you will be working primarily with the attorney you initially consult, or if your case will be primarily managed by a team of associate lawyers and paralegals. You need to feel comfortable and confident with every individual who will be involved in your legal matter.

It’s common for larger firms to operate with a team approach, where senior attorneys oversee cases, and associates or paralegals handle various tasks such as research, drafting documents, and managing communication. While this can be an efficient way to manage workload and leverage different levels of expertise, it’s crucial to understand the extent of each team member’s involvement. If your expectation is to work directly and consistently with the lead attorney you hired, then you need to be forward about your expectations regarding who will be working with you. Getting “passed off” to another lawyer without prior understanding can lead to a feeling of disconnect, a lack of personal attention, and potentially a fragmented understanding of your case details.

Real estate cases can be deeply personal and, at times, emotionally charged or even humiliating, especially when they involve sensitive financial dealings, personal property, or family matters. Individuals who are naturally guarded about their personal affairs and financial transactions often prefer a consistent point of contact. They may not want numerous strangers knowing the intimate details of their business. If you value a personal and consistent working relationship with a single attorney who fully understands the nuances of your situation and with whom you can build rapport, then express this preference upfront.

Ask specific questions such as:

  • “Will you be my primary point of contact throughout this process?”
  • “Who else from your firm will be working on my case, and what will their roles be?”
  • “Will I have direct access to them, or will all communication go through you?”
  • “How often can I expect to communicate directly with you?”

Understanding the firm’s operational model and the specific individuals who will be involved will help you determine if their approach aligns with your personal preferences and the level of personalized service you desire. This clarity prevents misunderstandings and ensures that your experience with the legal team is as comfortable and effective as possible.

5. Why Should I Choose You Instead of Another Lawyer?

This question might feel direct, but it is a critical inquiry that encourages a prospective attorney to articulate their unique value proposition. It’s not meant to be confrontational; rather, it’s an opportunity for them to demonstrate what sets them apart in a competitive legal landscape. The truth is, the market for real estate lawyers is robust, with many qualified professionals offering their services. Your decision will ultimately come down to which attorney best aligns with your specific needs and priorities.

A significant part of the attorney’s answer will depend on what you value most in legal representation. Do you prioritize quick deals and efficiency, seeking an attorney who can expedite the process without sacrificing accuracy? Or perhaps you prefer to be completely hands-off, entrusting your attorney to manage every detail and keep you informed only of major developments? Maybe your priority is an attorney with a deep understanding of complex financial structures, or one known for aggressive litigation tactics. Before asking this question, take a moment to consider your own priorities and communicate them to the attorney, as this will help them tailor their response to your specific concerns.

Strong competition in the legal field should ideally motivate attorneys to perform at their highest potential. When you ask an attorney what makes them superior to other firms in the area, their answer should be straightforward and concise. Look for clear differentiators, such as:

  • Specialized expertise: Do they have a particular niche in real estate law that directly relates to your case (e.g., commercial leasing, land development, environmental regulations)?
  • Proven track record: Can they point to successful outcomes in cases similar to yours?
  • Unique approach: Do they offer a specific methodology or philosophy that makes their service more effective or client-friendly?
  • Client communication and service: Do they emphasize their responsiveness, accessibility, or a personalized client experience?
  • Cost-effectiveness: While not always the primary factor, some attorneys might highlight their ability to provide high-quality service at a competitive rate or their strategic approach to minimizing legal costs.

Be wary of attorneys who ramble without providing a clear answer. A confident and competent attorney should be able to articulate their strengths and competitive advantages succinctly. Their pitch should feel like a focused argument for why they are the best choice for your specific situation.

Most law firms will seize the opportunity to highlight their achievements and capabilities to a potential client. This question essentially makes them pitch their services to you, encouraging them to bring their best abilities to the forefront. Their response will not only reveal their strengths but also give you insight into their confidence, their understanding of the market, and their commitment to client acquisition. This direct challenge allows you to assess their self-awareness, their professional pride, and ultimately, whether their strengths align with what you need in a legal representative.

6. Have You Had a Case Like Mine?

For complex real estate matters, having a legal representative with direct experience in cases similar to yours is invaluable. While general experience is important, specific familiarity with your type of situation can significantly impact the outcome. When you ask, “Have you had a case like mine?”, you’re probing for practical, hands-on knowledge rather than just theoretical understanding.

An attorney who has handled cases similar to yours will likely have a deeper understanding of the specific legal precedents, potential pitfalls, and effective strategies relevant to your situation. They can draw upon past experiences to navigate challenges more efficiently, saving you time and potentially money. More importantly, ask them how they performed in that case. Were they successful? What were the key takeaways or lessons learned from those experiences? Their ability to recount similar cases and their outcomes will provide tangible evidence of their relevant expertise.

A great attorney will also be able to discuss possible obstacles in your case and how they plan to overcome them. For instance, if you’re dealing with a property dispute involving an easement, an experienced attorney might immediately identify the challenges related to unclear property lines or unrecorded agreements and outline a strategy to gather evidence or negotiate with the opposing party. They should be able to anticipate the other party’s strategy and articulate their own plan of action to counter those moves. This forward-thinking approach is a hallmark of a skilled litigator or negotiator.

It’s also important to remember that even if the specific attorney you’re consulting hasn’t personally handled a case identical to yours, it’s possible that someone else in their firm has dealt with your type of case. Larger firms, in particular, often have multiple attorneys with diverse specializations. If this is the case, inquire about their internal collaboration process. Will the attorney you are speaking with consult with colleagues who have relevant experience? Will they bring in another attorney from the firm to co-counsel or provide insights? Understanding how the firm leverages its collective knowledge can be just as reassuring as an individual attorney’s direct experience. Ultimately, you want assurance that the legal team representing you has a clear roadmap and a proven track record for tackling the unique complexities of your real estate matter.

7. Do You Have References?

When you meet with a lawyer for an initial consultation, it’s their opportunity to make a strong first impression. They will naturally present themselves in the most favorable light, highlighting their successes and professionalism. While their presentation can give you a sense of their personality and communication style, it only provides one side of the story. To gain a more complete and objective picture of the attorney’s capabilities and client experience, it is essential to ask for a list of recent references.

A list of professional references, ideally from clients whose cases are similar to yours or who have recently engaged the attorney’s services, offers invaluable insights. Speaking with these references allows you to hear firsthand accounts of their experience with the lawyer. You can inquire about crucial aspects such as:

  • Communication: How effectively did the attorney communicate? Were they responsive to calls and emails? Did they keep the client informed throughout the process?
  • Responsiveness under pressure: How did the attorney perform when facing unexpected challenges or tight deadlines? Did they remain calm and strategic?
  • Weaknesses and strengths: While references will naturally focus on positive aspects, asking about any areas for improvement can also provide a balanced perspective. Conversely, they can highlight the attorney’s standout qualities, such as negotiation skills, attention to detail, or courtroom presence.
  • Overall satisfaction: Would the client hire this attorney again? Would they recommend them to others?

Start the Interview

The future of your real estate transaction depends on the questions you ask. A real estate attorney who answers confidently can make your life easier.

The right real estate legal professional can answer your questions, review documents, and argue cases for you in court.

Don’t wait any longer. Get the right attorney who will fight for you by contacting us today.

https://debruinlawfirm.com/wp-content/uploads/2020/06/Real-estate-law-scaled.jpg 1025 1538 Bryan De Bruin https://debruinlawfirm.com/wp-content/uploads/2025/04/logo.png Bryan De Bruin2020-06-22 18:29:212025-06-30 14:28:437 Questions to Ask Before Choosing a Real Estate Attorney

Our Latest Articles

  • What Happens if You Die Without a Will in Greenville County, SC?
  • Navigating Probate When the Executor Lives Outside South Carolina
  • Contesting a Will in Greenville County Probate Court: Grounds and Process
  • Beyond the Basics: Understanding South Carolina’s Residential Property Condition Disclosure Statement
  • AI Still Makes Things Up: Why Professionals Must Remain the Experts
  • Safeguarding Your Estate Plan: Why Protecting Your Will Is Just as Important as Creating It
  • Estate Planning And Victims Of Asbestos Exposure
  • 10 Common Estate Planning Mistakes and How to Avoid Them
  • 10 Benefits of Hiring a Startup Lawyer for Your New Business
  • Estate Planning 101: The Different Types of Wills

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

  • Business Law
  • Real Estate
  • Estate Planning

Quick Links

  • Home
  • About Us
  • Attorneys
  • Legal Services
  • Testimonials
  • Legal Articles
  • Contact Us

    Contact Us

    © 2025 De Bruin Law Firm, LLC. All Rights Reserved. This is a Too Darn Loud - Digital Marketing law firm website.
    Scroll to top