Purchasing property can be an exciting and rewarding experience, but it can also be a complex and stressful process. One of the key players in ensuring a smooth transaction is a real estate lawyer. But what exactly does a real estate lawyer do when you're purchasing a property? In this blog, we will discuss the critical role of a real estate lawyer in property purchases, from reviewing contracts to facilitating money transfers. Let's dive in.

1. Reviewing the Contract

Contrary to popular belief, a real estate lawyer's job begins once the contract is signed. The real estate agent usually deals with the contract portion, with one exception - if the purchase contract is subject to a lawyer's review. In this case, the real estate lawyer would review the contract before the purchase is signed off on. This ensures that their client's interests are protected and that they understand the terms and conditions of the agreement.

2. Reviewing Mortgage Instructions

Once the contract is signed, the real estate lawyer reviews the mortgage instructions from the bank or lender. This is a crucial step, as the lawyer needs to ensure that the mortgage terms align with their client's expectations and the discussions they had with their lender. They will also check for any errors or discrepancies between the mortgage instructions and the purchase contract, addressing any issues before they become potential roadblocks in the property purchase process.

3. Ensuring the Title is Clear

One of the primary responsibilities of a real estate lawyer is to ensure that what's on the title doesn't affect their client's interests. This involves conducting a thorough title search to identify any potential issues, such as liens, easements, or encroachments, that could affect the property's ownership, use, or value. If any problems are discovered, the lawyer will work to address and resolve them before the transaction proceeds, ensuring that their client is aware of any potential risks or limitations associated with the property.

4. Facilitating the Transfer of Money

When it's time to close the deal, the real estate lawyer plays a vital role in facilitating the transfer of money between the buyer, seller, and lender. This involves preparing and recording the necessary documents, such as the mortgage, and transfer of land. They also ensure that all closing costs, property taxes, and fees are paid, and that the funds are correctly allocated between the parties.

The real estate lawyer will also oversee the disbursement of funds to the appropriate parties, such as the seller, ensure the seller's lawyer promises to pay out the seller's mortgage if any, and any other financial or other encumbrances not to remain on title are removed.

A real estate lawyer plays an essential role in the property purchase process, ensuring that their client's interests are protected, and that the transaction proceeds smoothly and efficiently. From reviewing contracts and mortgage instructions to conducting title searches and facilitating the transfer of money, their expertise and diligence are invaluable in helping buyers navigate the complex world of real estate transactions.

If you're considering purchasing a property and want to ensure that your interests are protected, contact Sinclair Law today. Our experienced team of real estate lawyers is here to guide you through every step of the process, providing you with the peace of mind that comes from knowing your investment is in good hands.