What does a closing attorney do, exactly?
Attorney Richard D. Vetstein. explains the task list that the closing attorney takes care of when a property is sold.
Many buyers and sellers often wonder what a real estate closing attorney does other than conduct the closing. The closing attorney, as the “quarterback” of the closing process, performs many time consuming tasks preparing a transaction from intake to closing.When the title order arrives from the lender, the closing attorney first orders a municipal lien certificate, which verifies the real estate taxes and other municipal charges on the property. Insurance binders and payoffs of mortgages are also ordered.
The closing attorney is responsible for examining the title to the property. For purchases, the title is researched going back 50 years. The closing attorney carefully reviews the title examination to ensure there are no title defects; if there are any issues, the attorney will work with all parties to resolve them. Some title defects are extremely difficult to resolve. (By law, the closing attorney must provide new homebuyers with a certification of title).
The closing attorney also coordinates the issuance of title insurance to the lender and the new home buyer. I always recommend that buyers obtain their own title insurance policies because even with the most accurate title examination, there can be hidden title defects that could derail a later sale or refinance. Look no further than the Land Court Ibanez foreclosure mess.As the closing day approaches, the closing attorney will coordinate with the lender for the preparation and delivery of numerous documents to be signed at closing, including the mortgage, promissory note, truth in lending disclosures, and most importantly, the HUD-1 Settlement Statement. As outlined in the Settlement Statement, the closing attorney is responsible for (among other things):
• Payoff and discharge of mortgages
• Payment and allocation of real estate taxes and utilities
• Payment of realtor commissions
• Disclosure and payment of lender fees and closing costs
• Funding of mortgage escrow account
• Payment of transfer taxes and recording fees
• Payment of pre-paid interest
• Distribution of sale proceedsThe closing attorney then conducts the closing. She will explain the numerous loan and closing documents signed by buyer and seller, collect and distributes all funds, and otherwise ensure that the closing is properly conducted. After the closing, the attorney processes the loan funding, performs a title rundown to ensure there are no changes in the title, then records the deed, mortgage and other recordable instruments.
A lot more work that most people think….
