Real Estate Closing Process Questions Answered by Attorneys in Your State

Alabama

• Q.Does an attorney need to be present at closing?

  A.No, an attorney does not need to be present for the closing but I would highly recommend using an attorney to close your transaction.  However, only attorneys are able to answer any legal questions asked at the closing and with such an important venture, one should not take a chance with a non-attorney especially for a FSBO where they are most likely no agents involved.    Keep in mind that a real estate closing is a legal transaction.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Under current Alabama law, the Seller is under no duty to disclose a known defect or condition unless the defect or condition possess a threat to health and safety.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Yes, and that is another reason why you want to use an attorney — the sales contract is the contract between the parties and will be controlling as to the upcoming transaction and so it needs to be done where all issues contemplated by the parties are agreed to — the parties need to have “meeting of the minds”.  The job of the closing attorney is to close the loan in accordance with the executed sales contract.

• Q.What legal documents does the seller need to provide during closing?

  A.Nothing.  We will order the title and close the loan based on the terms of the sales contract after satisfying all requirements of the title commitment.  The seller might need to provide his/her LLC documents if the property is owned by an LLC.  Also, they might need to provide a signed resolution allowing for the sale the property but my office will prepare such a document.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Yes, you will need to have the HOA account from the seller to the buyer and the HOA/Condo association will have forms to complete and fees will be assessed for such a transfer.  A statement will be provided by the HOA/Condo association and this will be a requirement on the title commitment that no additional costs are due, or they will provide a breakdown of what needs to be paid at the closing. Also, there will be a condo/planned unit development (PUD) rider signed as part of the closing.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.For real estate closings, we charge a flat rate to handle so additional documentation most likely will not occur unless there is a power attorney or seller financing involved.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Not really; all should be covered in the flat fee amount. One possible extra charge would be the drafting of the power of attorney if one is needed to close the loan. Another one would be where the seller is holding the mortgage — in those instances, we would charge a fee to draft the note/mortgage.

Alaska

• Q.Does an attorney need to be present at closing?

  A.No.  Indeed they rarely are present at closings here in Alaska.  Most closings are accomplished by Title Companies.  Such companies typically have an attorney in their ranks to help address legal issues but neither that person nor any other attorney need be present.  Also, because of the distances from community to community in our state, often one or more of the principal parties has appeared only by mail (sending signed documents to the title company).

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Here you have to differentiate between residential and commercial realty.  For residential real estate Alaska has developed the Alaska Residential Real Property Disclosure Form.  See link to form:https://www.commerce.alaska.gov/web/portals/5/pub/rec4229.pdf

  Use of this form can be waived but I do not advise doing so.  If the form is honestly and fairly completed, the Seller is protected from claims of non-disclosure.  On this topic see Amyot v. Luchini, 932 P.2d 244 (Alaska 1997)(Purchaser sued vendors of residential real estate for innocent, negligent, and intentional misrepresentation. The Superior Court dismissed innocent misrepresentation claim and entered judgment on jury verdict in favor of vendors on remaining claims. Purchaser appealed. The Supreme Court held that statute requiring good faith disclosure of defects in residential real property transfers precluded claims of innocent misrepresentation as to residential property concerning conditions included in mandatory disclosure form)[Squib prepared by Westlaw]; Beaux v. Jacob, 30 P.3d 90 (Alaska 2001)(Home purchasers brought claims against vendors for misrepresentation, failure to disclose, and violation of the Disclosures in Residential Real Property Transfers Act, alleging that vendors did not disclose the necessity of using second sump pump to control groundwater level.  The Superior Court entered judgment awarding $56,393.88 to purchasers.  Cross-appeals were taken. The Supreme Court held that: (1) evidence established a negligent disclosure on the statutory residential real property transfer disclosure form; … (3) purchasers did not fail to mitigate damages; (4) purchasers were not entitled to actual damages for installing perimeter drain system; (5) purchasers were entitled to receive new carpet similar in quality to the original carpet …).[Squib prepared by Westlaw].  There are other reported decisions but these give you an idea of the scope of protection afforded sellers by use of the form.

  With respect to commercial transactions, our courts look to the totality of the circumstances.  The remedy varies directly with the level of nondisclosure.  An “innocent misrepresentation” can lead to rescission of the sale contract even after it is complete (deed has issued to buyer).  Negligent misrepresentation will give rise to damages in addition to other remedies.  Fraud (intentional non-disclosure) may lead to penalties.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.This response is limited to real property contracts.  As a result of real estate problems in the 1980’s, we require lenders to make an election of remedies when they foreclose.  If they loaned the purchase money pursuant to a Deed of Trust, they may elect to proceed by Trustee Sale or Judicial Foreclosure.  If they proceed by Trustee Sale they may not thereafter pursue any deficiency.  (The totality of their collection is what they recover at the sale).  If the property was sold on “Contract for Deed” there is no “Trustee sale” and the remedies of the contract are fully available so long as they do not constitute usury.  Of course we have a Statute of Frauds that requires most real property purchases to be in writing else they will be unenforceable.  With respect to mobile homes, the manufacturer is required to give the purchaser a warranty and that warranty cannot be waived or nullified in the purchase contract.

• Q.What legal documents does the seller need to provide during closing?

  A.The only requirement is a deed.  However, prudence dictates that the majority of transactions be preceded by a “title search” and, typically, title insurance.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Yes.  Condos by definition are subject to certain documents created under Alaska’s Common Interest Ownership Act which, among other things, requires a unit owner to furnish to the buyer the Declaration, Bylaws, Any rules and regulations, and a “resale certificate.”  Alaska Statutes (AS) 34.08.590

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.About 5 hours of legal time.  Typically an attorney would not be needed to help the seller complete the Disclosure Form because the form requires knowledge that only an owner would have.  If asked to help, that would not take more than one hour (unless the owner wanted the lawyer to walk through the house with him or her, in which case a prudent lawyer would defer and refer a home inspector or engineer to do the walk through.)  Typically residential home buyers and sellers in Alaska use a boilerplate Purchase and Sale Agreement prepared by the Multiple Listing Service (MLS) and provided to the seller or buyer by a real estate agent.  I’m not enamored with that form.  Working with clients to create a better, more site-specific form using our models would entail 1 to 5 hours of legal time.  Moving the closing date is typically contemplated by the sale contract and is typically accomplished with an email between the parties and with the closing agent.  Time 12 minutes.  Typically we would have the title company provide a title report and we would review it, looking for issues.  1-2 hours.   Thus, in a typical residential real estate situation our involvement would be minimal, around 5 hours.

  However, our services kick in when the title report or due diligence investigation reveals a concern.  These can take substantial time to rectify.  E.g. recent issues:  the driveway is on a neighbor’s property and there is no easement; part of the home or the improvements sit on another person’s property (over the boundary); the buyer wants to remodel but the home is “non-conforming with zoning”; the on-lot septic is too close to a well; there has been a leaking fuel tank and soil is contaminated; the structure was not built to code; the seller does not have clear title due to various types of encumbrances, etc.).  These problems typically cost at least $2,500 to resolve and have run into six figure litigation costs.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.The simplest closing requires nothing more than preparation of a deed and recording of same.  This can be had for a couple hundred dollars or less.  On the other end of the spectrum, a sale of commercial realty with a serious environmental or title problem can cost several hundred thousand to resolve.

Arkansas

• Q.Does an attorney need to be present at closing?

  A.No.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Arkansas law doesn't specifically require that sellers make any disclosures about the condition of their homes.

  Regarding the property status, the buyer reviews and signs off on any disclosures. These disclosures vary based on property type, but often include things like known flaws with the property, prior improvements or repairs, and potential environmental hazards. A form called a seller property disclosure is provided by the seller either before signing of the contract or upon request (as indicated in the contract itself).

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.None.

• Q.What legal documents does the seller need to provide during closing?

  A.The minimum requirement is just the settlement statement, and a warranty deed.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.No. Just anything that the buyer or lender would require. That would be up to to the lender.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.$250

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.It's up to the buyer and seller to split the Transfer tax. So the seller would pay for half of the Transfer Tax. Then for customers in our area, it's also the seller who will pay for the buyer's owner policy title or insurance, so the premium for the title insurance or any corresponding charge for the title search.

Arizona

• Q.Does an attorney need to be present at closing?

  A.No. Most closings in Arizona are handled by the title company involved. Before it is time to sign through the title company, you should be familiar with and comfortable with the closing documents, including the settlement statement, loan terms, vesting deed, etc. Leave time to ask your attorney about any legal questions you have prior to closing. For instance, what is the best way to take title jointly?

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Arizona law only requires the seller to disclose known material (important) facts about the property, even if the seller is not asked by the buyer or a real estate agent. Typically, sellers use the Seller’s Property Disclosure Statement (“SPDS”) to accomplish the required disclosure. But unless the purchase contract specifically calls for it, the SPDS form isn’t necessary. Only that seller’s disclose all known material facts about the property. Seller doesn’t have to investigate or inspect the property for defects, only disclose what is known. Sellers also have a duty to disclose facts when necessary to prevent a previous statement from being misleading or misrepresented. For example, if the seller discovers termites after delivering to the buyer a SPDS that indicates no known problem with termites. Some things many buyers may consider material do not need to be disclosed, such as a death on the property or sex offenders in the vicinity. See A.R.S. 32-2156. But if the buyer asks about a specific aspect of the property, the seller has to disclose any known information about it, even if the seller does not consider the information material.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Arizona requires the signatures of both spouses to enforce the purchase or sale of real estate by the marital community. See A.R.S. 25-214(C)(1). There are also special trust disclosure requirements if a trust is used to purchase or sell real estate. See A.R.S. 33-404.

• Q.What legal documents does the seller need to provide during closing?

  A.What the seller needs to provide at closing depends on what is called for in the purchase contract. That generally includes a notarized deed, signed settlement statement, and other documents required by the title company in order to issue a title policy.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.If the property is subject to an owners association, which is almost always the case with condos and town homes, information about the association must be disclosed by the seller, or in some cases, the association. See A.R.S. 33-1260. Also, when an association is involved, outstanding or anticipated assessments against the property should be disclosed. Associations may have other specific requirements regarding the transfer of property.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.Simple amendments to the purchase contract are generally handled through fill-in-the-blank forms used by the realtors involved. If it is a more complex amendment, or if no realtors are involved, my hourly rate applies to the preparation of any document relating to the transaction.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Legal fees are generally paid in advance depending on the scope of work. Sometimes legal fees are paid directly from escrow at closing. If so, they should be agreed upon in advance and reflected on the settlement statement.

California

• Q.Does an attorney need to be present at closing?

  A.No!

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Natural Hazard Disclosure Statements.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.There are a myriad of issues which would consume multiple pages.  The Purchase and Sale Agreements I prepare are institutional quality and very comprehensive.

• Q.What legal documents does the seller need to provide during closing?

  A.There are a multitude of documents including a Grant Deed, FIRPTA Affidavit; and, depending on the nature of the transaction, assignment and assumption agreements.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Yes!

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.My hourly rate is $ 375.00, which is a comparative bargain.  It is not possible to estimate fees for a hypothetical transaction.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.There are no specific closing legal fees.

Colorado

• Q.Does an attorney need to be present at closing?

  A.The law in Colorado does not require an attorney to be present.  I suggest to clients that they use an attorney for the first closing they do so they can learn what a closing is about.  After that, if they feel comfortable reading a title report and feel they understand the other docs, they would not need an attorney.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.This is a tricky question.  The disclosure document asks the seller to disclose anything else that they may know.  This can be construed to include relatively small matters.  Otherwise the Colorado Real Estate Commission (CREC) has a great disclosure form.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.This is a short question with too long of an answer.  It depends if you are the seller or buyer and if the deal is on commercial or residential property.  You can add a myriad of additional provisions to a contract and depending on who one represents and what type of transaction there is, the additional provisions can be long or short.  The CREC forms for residential and commercial deals are to me very comprehensive – though they usually favor the buyer over the seller.

• Q.What legal documents does the seller need to provide during closing?

  A.If you mean at the closing table, usually only his or her  drivers license or sufficient proof of identity (which must be a photo ID of some sort).  As for documents needed during the process from the time the contract is signed by all parties and the closing, again, the documentation can be extensive.  For instance, if the seller is paying off a loan, he or she will need to get payoff statements from the current lenders so they can be paid in full at closing.  From the real estate side of the deal, he or she may be required to provide statements as to his or her identity and previously-used names.  This is to insure that the seller is not (or is) a person named in the public records as owing a debt.  If such a debt is owed, and if the person is the person that incurred the debt, then it would have to be paid at closing.  Further, there may be title defects and survey defects that have to be fixed so the seller can transfer good title.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Yes.  Most all townhome and condo developments (and indeed most subdivisions in Colorado) have covenants and a home owners association to which each owner must belong and pay dues.  The controlling documents (called “Covenants, Conditions, and Restrictions”, or just “covenants”), tell the owner how he or she can use the property.  They will include limitations on what can be done to the lot (e.g. no barns or outbuildings are allowed), limitations on exterior paint colors and building materials, and the like.  They can be quite extensive.  These documents must be given to the buyer before he or she closes.  Usually, such documents require the buyer to sign assumption documents and the like.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.We usually quote a flat fee of 1% of the purchase price.  For this fee we do what ever is necessary to represent out client including the drafting and review of any documents that are needed to make the deal happen.  We do not provide title services (and you see a smile on my face because I don’t!)

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.I am assuming you mean fees to attorneys as opposed to fees that are legal for the title company and lender to charge.  As attorneys are not required for the closing there are no required fees.

Connecticut

• Q.Does an attorney need to be present at closing?

  A.Yes, in Connecticut it is the attorneys for the Seller and Buyer who attend closing exchange the deed for the purchase proceeds. The clients can sign a Power of Attorney so they do not have to be present, but the attorneys are always present.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.The disclosures requirements are set out on a State form called the Residential Property Condition Disclosure Report. It asks how long the Seller has lived there, who owns it, is it in a flood zone, are there any assessments, as well as lead and radon disclosures.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.There are different custom in different parts of the State regarding the contract. In Fairfield County, it is the Seller’s attorney who drafts the contract usually on the Bar form of their locale. In northern parts of Connecticut it is customary for the real estate agents to draft the contracts.

  Another common issue is that the closing date is considered to be an “about” date. If the Seller is looking to do a double closing, sell one property and buy another on the same day, a time is of the essence clause needs to be inserted.

• Q.What legal documents does the seller need to provide during closing?

  A.The purchase and sales contract, State disclosures, the Deed transferring title, Seller or their attorney must sign the Closing Disclosure, there is a non-foreign person affidavit, an owners affidavit for title insurance purposes, attorney authorizations, attorney undertaking letters and payoff letters for existing mortgages and liens, a Substitute 1099 IRS form, smoke detector affidavit, and any necessary power of attorneys.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Either the seller or buyer will need to request a “resale package” which will include the bylaws, common fee amounts, and any other organizational document for the association. There will also be a form that must be filled out at closing and sent to the condominium association or common interest community containing the contact information for the new owner.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.My standard fee for the sale of a property is $995 including the drafting of all documents and attending closing, followed by sending off any payments and disbursing funds as necessary. I would NOT charge anything extra for drafting an amendment or changing the closing date, this is fairly standard and happens often.

  My fee for a purchase is $800 and includes everything necessary to close on the property as well.

  Title searches and title insurance are usually paid by the BUYER. Title searches are performed for my office through CATIC, the company we write Title Insurance policies for. A policy to protect the Lender for $250,000 is $900, and an additional policy to protect the homeowner for $250,000 is $153. This is a one-time payment and protects the property from third party title claims.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.There are no additional legal fees.

  There may be other disbursements such as document prep fees, recording fees, FedEx fees, etc.

Delaware

• Q.Does an attorney need to be present at closing?

  A.Yes, an attorney has to be present as the attorney normally handles the closings. A Supreme Court decision in 2000 has unauthorized anyone who is not an attorney from conducting a real estate settlement, thereby making it compulsory to have an attorney present at closings.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.In Delaware, the law requires that apart from disclosing all known defects and condition with the property, it is mandatory to provide the buyer with any information on radon testing’s and inspections in your possession and notify the buyer of all the known radon hazards. A form called a Seller’s Disclosure of Real Property Condition Report is generally provided by the seller as an addition to the contract. Other disclosures includes deed restriction, house system, structural integrity, environmental issues, basement and crawling spaces and soil.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.The attorney performs a title search to determine if there are any liens or assessments on the title of the property.

• Q.What legal documents does the seller need to provide during closing?

  A.The seller does not have to be present during the closure as long as all documents have been signed and all costs paid ahead of time. The keys to the property will also be handed over the same day. At the closing the cost and fees are paid, all documents signed and handed over, the deed are recorded.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.During the proceedings, a resale certificate has to be made available for the buyer by the seller of the property due to the Delaware uniform common interest ownership act (DUCIOA) also the public offering statement (POS) is to be provided by the condominiums, cooperatives and other planned communities.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.During closures in real estate, we charge a standard fee and it’s in rare occasions that additional charges can be incurred.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.All the legal aspects of the settlements, documents reviews, and fillings are handled by the attorney in service of the lender. Although some additional expenses can be incurred in hiring a legal representative during the closure.

Florida

• Q.Does an attorney need to be present at closing?

  A.Unfortunately not.  Many states have requirements that title companies only be licensed attorneys but florida unfortunately is not one of them.  Anyone can obtain a title agent license and run a title company. However only a select few title agents are also real estate attorneys.  A real estate attorney handling a closing, the way we do, as i handle all my own closings, is the best equipped to explain to either a buyer or seller all the paperwork they are signing and the legal ramifications of same.    Many attorneys have either their support staff or paralegal handle the closings and then when questions arise, they shrug their shoulders. That leads to many issues in the future and questions from buyer and seller alike.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.In Florida, a seller is required to disclose any known defects and a sellers disclosure which is part of the far/bar or far contract is used.  If however, if is not disclosed and comes up and seller didn’t know then it usually doesn’t lead to any repercussions. If however, it is revealed or disclosed that it was concealed, then this can lead to a lawsuit for such fraud.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Many. Too many to go into in a paragraph or two.

• Q.What legal documents does the seller need to provide during closing?

  A.A seller needs to prove that they are either a citizen or a resident  in order to avoid firpta which is going up to 15% now on February 16, 2016.  A seller also needs to prove identify so that docs can be notarized. If it is a foreign seller, and the price is over $1,000,000.00 cash, then additional requirements are necessary to prove where the earnest deposit and funds to close are coming from.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.On a condo, the additional contractual requirements include the condominium rider and a disclosure of any assessments and maintenance dues.   On a townhouse, the same except from the hoa.  Both require also that the seller provide the condo documents including a budget and fiscal docs for the year of closing including a budget. This gets signed at closing and the buyer has three days to review it.  This is the biggest loop hole to get the buyer out of a contract. If the seller doesn’t produce these docs, or produces them at closing, buyer still has three days to review them. If there is anything that they don’t like they can cancel the transaction without penalty.

  A condo or th sale also typically requires an application for approval, an assignment of parking space or inclusion of the parking space in the deed, as well as approval by the board.

  A condo or th also requires an estoppel to the title company and a pud questionnaire to the lender if applicable.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.All seller representation is always $450.00 for doc prep or $650.00 including attendance at closing. Been charging the same for 16 years.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.No all legal fees are paid at the time of retaining.

Georgia

• Q.Does an attorney need to be present at closing?

  A.Georgia is an “attorney state” and a lawyer must be both present at closing and involved in the closing process from beginning to end.  Further, the Supreme Court of Georgia, which regulates lawyers and lawyer conduct has issued an advisory opinion that states, “A Lawyer who purports to handle a closing in the limited role of a witness violates the Georgia Rules of Professional Conduct.”  Real estate law firms in Georgia are frequently the agent for the title insurer, and provide the equivalent services as title companies in other states.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Sellers in Georgia are generally required to disclose known, hidden defects that materially affect the value of the property.  Although an owner may not be legally required to disclose obvious defects, such as those that would be discovered in a buyer's home inspection, it is often advisable to do so anyway.  A seller must also answer truthfully when specifically asked questions through a property disclosure statement. For homes built before 1978, sellers must provide a lead-based paint disclosure, disclosing the presence of known lead-based paint.  In recent years, lenders have also requested the disclosure in transactions involving post 1978 era properties as a precaution for the possible presence of lead in recycled materials used in the home.  Georgia law does not require the seller to inform a buyer if any diseased person ever lived in the home, or if a homicide, felony, suicide, or any other death occurred there (Georgia Official Code Annotated §44-1-16(a)(1)).  Buyers should always perform their own investigation and research regarding the neighborhood and subdivision where the home is located.  Georgia statutes specifically state that a seller is not required to inform the buyer if a registered sex offender lives in the area (Georgia Official Code Annotated §44-1-16 (b)). Buyers are well-advised to use a comprehensive seller disclosure checklist, and then to independently verify all seller representations.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Although not specifically required in a Georgia real estate contract, parties are advised to clarify whether the buyer or seller will pay the State of Georgia Transfer Tax, payable at $1.00 per thousand on the sales price.  By default the transfer tax is treated as a seller paid expense, but in recent years it has become more common to have the tax designated as a buyer expense.  Typically, the parties will also designate a specific closing attorney who may also be asked to hold the earnest money, if any.  The contract should take care to adequately describe the property with as much information as possible such as street address, tax parcel number and legal description, since ambiguities can arise.  The parties are also advised to delineate personal property that is either made a part of or excluded from the contract.  The general rule is that only items “screwed or glued” stay with the property and anything else goes.  Window treatments and appliances are commonly subjects of dispute.

• Q.What legal documents does the seller need to provide during closing?

  A.A seller of real estate in Georgia will be asked to execute the following documents:  deed of conveyance, owner's affidavit, 1099 reporting form, Georgia residence affidavit, W-9 or affidavit of non-foreign seller, and closing statement acknowledgement. Additional documents may be required where seller is not a U.S. person or Georgia resident; in transactions involving 1031 tax deferred exchanges; and in closings involving commercial or investment property.  Some closing attorneys may request additional documents to be signed.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.In the sale of condominiums or properties subject to mandatory assessment, additional documents may be requested by the management company.  First time sales involving new condominium properties or conversions require specific disclosures.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.We provide contract preparation and drafting as a service to our clients.  Our fee structure varies upon the property type and needs of the clients.  Currently, we have an excellent program available to homebuyers on residential properties.  Under this program we will prepare a residential purchase and sale agreement and disclosures for a single, low fee.  And, if the contract does not result in a closing, we will prepare a new agreement on a different property free of charge.  We have received positive feedback on this program since clients receive the expertise of seasoned real estate attorneys without having to pay lawyer fees at an hourly rate.  Clients can view a full fee schedule on our interactive closing cost and title premium calculator found at http://handleypahl.com.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.In Georgia residential transactions involving a loan, the closing attorney will legally represent the lender.  Otherwise, the parties may designate in the purchase and sale agreement which party, if any, the attorney will represent.  It is not common for each party to bring their own attorney, but they may at their own option and expense. An often overlooked financial product is the closing protection letter, also known as an insured closing letter.  The cost for this product varies among title insurers but typically costs about $40.  The insurance protects either the buyer's funds on deposit with a closing attorney or title company before the closing occurs, or the seller's proceeds after the closing has concluded but before delivery of the funds is tendered to the seller.  Buyers of property involving single family homes are generally advised to purchase an as-built survey, typically costing $400 to $500.  To receive the its full benefits, surveys should be ordered enough in advance of closing so that the survey results can be evaluated well before closing.

Hawaii

• Q.Does an attorney need to be present at closing?

  A.No – rarely needed for residential closing

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.See Hawaii Seller's Real Property Disclosure Statement attached form required by Seller in 10days of Purchase contract.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.No.

• Q.What legal documents does the seller need to provide during closing?

  A.None. In Hawaii well over 90% of residential closing go thru escrow companies that run title, offer title insurance, have documents prepared, escrow and distribute all the funds, prepare and file all tax forms; conduct the closing; and record the documents.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Condominiums need to register with Real Estate Commission and Developer needs to submit a copy of the Developer’s Report to first purchaser.  Buyer must join in signing the condo deed to assume and abide with the condo’s terms and conditions.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.My practice (when there is no realtor involved) is to prepare and have signed by the parties the Purchase Agreement and Seller’s disclosure form with the nominal down payment from Buyer and bring it over to the escrow company to take from there. In this case I might have to prepare and file the parties’ notices extensions etc. When there is a realtor involved – they do the purchase contract and interface with the escrow company. The realtor will take care of extensions etc.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.None normally.

Idaho

• Q.Does an attorney need to be present at closing?

  A.No, There is no law in Idaho that says an attorney needs to be present at closings, but it is highly recommended to have one present during the proceedings. While some people would like to handle the proceedings from start to finish on their own, most would prefer having a professional support available. While noting that closings are legal transactions and need to be handled with extreme caution. Closings in Idaho are handled through escrows.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Idaho mandates that you must make certain disclosures to potential buyers within ten days of the date of offer to purchase your property. It’s intended to promote the public health, safety, welfare and to protect consumers by requiring sellers to disclose certain defects in the residential real property to prospective buyers.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Yes, having an attorney go through all the requirements to make sure all the requirements are made available and all information’s are in compliance with the laws of Idaho.

• Q.What legal documents does the seller need to provide during closing?

  A.At closings the seller signs all the paperwork and turns over the key to the buyer. The seller need to come along with his/her driver’s license or any form photo identification and the seller also needs to pay any tax or fees owed.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.In sales of condos, town homes etc. there are documents which includes offer plans and/or master deed, declaration of condominium, condo questionnaires, declaration of trust are just some of the required documents.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.There is a standard fee for real estate closings and any additional charges which might be incurred during the proceedings will depend on the sellers financing and letter of attorney.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Not really. On average, home buyers pay lending fees of about $894 and $788 for third party-fees in Idaho for a total ranging from $1500 to $2000 which are on a flat rate basis. The prices vary based on the lenders and the market. The seller is responsible for paying.

  The sales commission and covering the cost of title insurance on the buyer. Additional closing costs include property transfer tax, property taxes owed, title search, a home warranty and escrow fees. The seller can expect to pay approximately 1% of the sale price in closing costs.

Illinois

• Q.Does an attorney need to be present at closing?

  A.Technically no, but the vast majority of the time they are there.  You do need an Attorney to draft the various legal documents needed for the closing.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.It depends on the type of property but here in Illinois we have the real property disclosure form, radon disclosure, and the lead based paint disclosure.  We also have a mold disclosure that is optional.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Yes, in the Chicago area, we have two fairly standard contracts right now – the Chicago Association of Realtors Contract and the 6.1 multi-board Contract.  Both are tailored for use in the Chicago are market.

• Q.What legal documents does the seller need to provide during closing?

  A.The customary documents include the Deed, Bill of Sale, Affidavit of Title, and ALTA statement

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Yes, the Illinois Condominium Property Act requires certain documents to be turned over from the association to the Buyer so that the Buyer can review those prior to the closing.  The most important document is the 22.1 disclosure which the management company or President will fill out.  This document will state whether there are any anticipated capital expenditures coming up in the next 2 years, whether the association is involved with any litigation, etc.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.My firm charges a flat fee of $495.00 for sales.  And if the transaction does not work out, there is no fee owed.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.There are no additional legal fees owed to me but there are other fees that have to be paid including title insurance, transfer taxes, etc.

Kentucky

• Q.Does an attorney need to be present at closing?

  A.No.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.As far as closings go, the New Tread Laws, they're not new anymore, about a year old in the fall, but we do have the closing disclosure that has to be sent out to the buyer 3 business days prior to closing.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Not outside the norm. There are differences in Kentucky compared to some other states as far as typical seller and buyer paid closing costs but since it's typical in Kentucky, it doesn't necessarily have to be spelled out. In our state, in Kentucky the seller typically pays for the Deed Preparation and the Transfer Taxes, which is the government charge. In some other state like in Tennessee, if I remember correctly, the buyer actually pays the transfer tax so it's a little different but it is typical here so it doesn't necessarily have to be spelled out. For For Sale By Owner, I would specify if it were me that is contingent upon the appraised value, either meeting or exceeding the purchase price, so they have not been out of the contract if it doesn't appraise for enough and anything they want to stay with the house. Of course if there's anything agreed upon, that would have to be spelled out. If the seller agreed to pay any closing costs for the buyer, that they are getting clear title and that's something we take care of. We would notify them if they were not and about the contract as well. And if there are issues as far as the title search is concerned, that way they have another kind of for their protection so that if there were issues that they are not bound by the contract to purchase it.

• Q.What legal documents does the seller need to provide during closing?

  A.We always, of course because we are authorizing their signature, we need some sort of identification proof of who they are and outside of, typically we prepare. It depends on if the seller is an individual or an entity or if they are some sort of business, we would require additional documentation but if it's an individual that is selling, we do all the research during the title search just proving that they are who they say they are. Then they can sign the documents to convey the property to the buyer

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.We don't deal a tone with those here in our city. There may be additional documents required, there might be like an addendum or a writer as far as the mortgage is concerned. If the borrower is getting financing and sometimes the underwriter depending on where they get their financing, they might require some additional stuff.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.As far as Document Preparation is concerned, we help prepare for the contract or anything like that seller disclosure. Our Document Preparation fees is usually $100.

  If the property is in Warren County, which is we are located, a 30-year title search would be $200.

  If the property is out of County, we charge a little bit more, we charge to $250 for the title search.

  Our closing fee is $350. We also charge $100 for the Deed Prep, which is the seller cost, which would be separate from the contract or anything like that if we helped prepare it.

  In most cases, it's not that we have not done a ton of those but we do that sometimes. A lot of times, they already come to us with a contract.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.There is always going to be Government Recording charges, so you always have to pay of course to get the deed recorded. Mortgage recording, if you do have financing, again those transfer taxes when the property is sold, which of the seller pays. Then of course there's going to be fees, if they do have financing, that would all be broken down by there lender, when they found their disclosures, that sort of thing. And of course, always make sure that the tax is separately paid so that maybe something else if taxes are due that could be something else that's actually paid at closing.

Maryland

• Q.Does an attorney need to be present at closing?

  A.An attorney presence is not mandated by law but is a good idea, especially when no real estate agents are present.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Varies county to county and with type of property.  For instance, if there is a front foot assessment, condo association or HOA the seller will need to make certain other disclosures.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Yes.  It is generally not a good idea to use pre-printed contract forms because they may not deal with specific requirements in Maryland and/or the particular county.

• Q.What legal documents does the seller need to provide during closing?

  A.Deed, other documents may be required depending on circumstances.  For instance, withholding tax will be collected by the county unless the Seller provides an affidavit of residency for exemption.  The Seller will also need to provide tax information for mandatory tax reporting and sign the settlement sheet.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Yes – the seller must provide copies of specific condo or HOA documents PRIOR to closing.  The Buyer may cancel the sale if these documents are not received.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.This firm charges a flat fee for preparing sales contracts, generally in the $500 – $550 range for a standard residential contract of sale with 1-2 addenda where the seller handles negotiation.  The firm can assist a seller with more comprehensive representation (negotiating with buyers, preparing the contract and attending closing) where requested, generally for a flat fee of 1% of the sale price, minimum $1500, max $5500.  No fee is set by law and each situation must be discussed with the firm before representation begins.   The Buyer selects his/her own title company for closing and typically pays the closing costs to their selected title company.  The Seller generally has no control over selecting the title company but pays for the deed preparation (usually around $150 – $200) and half of the transfer/recordation taxes or other percentage as set by contract.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Closings typically involve lender fees, title examination fees, document prep fees, recording fees and transfer and recordation taxes.  Taxes are based on the sales price and vary by county.  Some costs are born by the buyer, some may be split equally by the parties or allocated otherwise by contract and some born by the seller.  There are no “required” legal fees in the closing costs unless a party engages an attorney.  This firm charges a flat fee of $300 – $400 to attend a local closing conducted by someone else and review the settlement sheet, deed and other closing documents.

Michigan

• Q.Does an attorney need to be present at closing?

  A.It is not required by law in Michigan, but highly recommended.  I insist on coming to every FSBO closing that I am hired on to sort out the inevitable problems that pop up at closing.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.In Michigan, we must have a Seller's Disclosure Form filled out by all sellers (except probate estates – they are not bound because they are selling in a representative capacity) and also the Federal Lead Based paint disclosure for any homes manufactured before 1978.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Just the above required disclosures, and I always use a Title Company to handle all the forms, disclosures, tax matters, title searches, etc.  My chosen Title Company handles all of this for a very minimal fee to my FSBO clients, and there are no issues wondering if all rules and regulations are being followed.

• Q.What legal documents does the seller need to provide during closing?

  A.Seller's are required to sign a deed at closing, work with my office on payoffs of existing liens, handle matters like certificates of trust existence (for homes that are owned in trust by the living grantors), homeowner's or condo association letters, by-laws, rules and regulations.  They will also sign off documents at closing confirming there are no liens outside of the chain of title, no work has been performed on the home in the last 120 days, that there is no pending litigation or other issues which would affect giving clear title.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.A letter is required from the management company or HOA stating the current status of dues, proration amounts and standing, as well as any fees required to transfer ownership.  Co-Operatives are much more complex, but essentially require the management to approve the sale of the interest in the unit, oftentimes back to the co-op itself.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.My fees are based on a hourly rate and I take an initial upfront retainer of $1500.00 for my fees, of which I bill the client monthly until the matter is concluded.  My bill is approximately this amount, but could be more or less based on the issues that pop up during the transaction.  My title company charges a flat fee of $250 to handle all paperwork on the FSBO and close the real estate portion of the sale.  The Seller is usually charged for an owner's policy of title insurance, which is set by statute in Michigan, and Seller often is responsible for the State and County Real Estate Transfer Taxes, which amount to $8.60 per thousand dollars of the sales price of the home.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.There are no other “legal fees” in Michigan, but there can be extra costs such as a water escrow or occupancy escrow, wire fee to get sellers proceeds, etc.  I usually make by clients, both buyers and sellers, aware of these charges up front when I provide them my standard FSBO checklist.

Minnesota

• Q.Does an attorney need to be present at closing?

  A.Minnesota law does not require an attorney to conduct or attend closings. Most closings are handled by title companies. Unless the closing transaction is expected to be contentious for some reason, an attorney is far more helpful and useful prior to the closing. I describe a typical closing to my clients as a “signing party” – a time to sign closing documents, not a time to renegotiate the deal or hash out disagreements.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.This is far too broad a question to answer in a paragraph or two. Minnesota law requires disclosure regarding, for example (i) all material facts (not just defects) that could adversely and significantly affect a buyer’s use or intended use of the property of which the seller is aware; (ii) methamphetamine production on the property; and (iii) whether there is a well on the property and, if so, whether it is in use or capped. Condominium and townhome sellers are also required to provide additional disclosures regarding the association’s financial condition, matters affecting the use or occupancy of the property (e.g., leasing restrictions) and the status of the seller’s account with the association. Some cities require truth-in-housing inspections and require truth-in-housing reports to be made available to all prospective purchasers.

  These are just a few examples of typical disclosures. What disclosures are appropriate for a given property depends on the property itself.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.This, too, is a broad question. As is the case with disclosures, what needs to be addressed in a purchase agreement will depend, at least in part, on the property itself. Since the written agreement represents the entire agreement of the parties, it needs to be comprehensive. Aside from “standard” terms (price, property address, earnest money, closing date, etc.), if the parties agree on issues unique to the property, those terms need to be addressed with as much specificity as possible in the purchase agreement.

• Q.What legal documents does the seller need to provide during closing?

  A.In a typical residential transaction where the buyers are obtaining their own financing, the seller provides (a) deed (in the form identified in the purchase agreement), (b) standard seller’s affidavit, (c) Certificate of Real Estate Value (d) documents required to clear title (lien releases, payoff statements for existing mortgages, etc.).

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Yes. As noted above, sellers of townhomes and condominiums are required to provide a Resale Disclosure Certificate. While the homeowners association completes the form, it is the seller’s responsibility – and obligation – to request the form from the association. The documents governing the association (Declaration, Articles of Incorporation, Bylaws, Rules) are to be provided to the prospective purchaser along with the Resale Disclosure Certificate.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.The charge may differ depending on the attorney handling the transaction. Typically, the attorneys’ fees will be $2,000 – $2,500. That does not include any out of pocket costs.

  Note that an attorney typically does not assist a seller in completing disclosure forms, since the information disclosed is based on the seller’s knowledge. We can advise what forms need to be completed, requested or provided, but it’s the seller’s responsibility to take care of completing or providing the disclosures.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Typically, closings involving financing will be handled by a title company. Cash transactions or sellerfinanced transactions (contracts for deed) sometimes close at an attorney’s office, though many of those transactions also use a title company’s services. Typically, there would be an additional fee for conducting the closing. The fee may vary based on the complexity of the transaction.

  There are also, of course, various costs associated with closing, regardless of whether the closing takes place at a title company or attorney’s office. The costs borne by seller may include recording fees, state deed tax (which is based on the sales price), conservation fees ($5.00 per document recorded), real estate tax prorations, special assessment prorations, homeowners association fee prorations, outstanding municipal utility charges, etc.

Mississippi

• Q.Does an attorney need to be present at closing?

  A.In Mississippi it is not required for an attorney to be at a closing, however, it is highly recommended.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Mississippi Property Condition Disclosure Statement

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Yes, please refer to the Informational Statement for Mississippi Property Condition Disclosure Statement

• Q.What legal documents does the seller need to provide during closing?

  A.On any real estate transfer, the seller should provide a title certificate from an attorney who is authorized to write title insurance in the State of Mississippi, and a general warranty deed.  There are generally 3 types of deeds in Mississippi and the only one that a buyer should accept is the general Warranty Deed.  The differences are as follows:

  1) A general Warranty Deed is a warranty from the seller that the title to the property is good and marketable and that the seller will defend the title for the benefit of the buyer.

  2) A Special Warranty Deed only warrants the title for the time that the seller has held title.  No warranty for previous title holders, and;

  3) a Quitclaim Deed, which only conveys title if the grantor has any interest in the property.  It's like selling oceanfront property in AZ or selling the Brooklyn bridge, you, the grantee, can have all of my interest, if I have any, in the described property.  A quitclaim deed should only be used to clear clouds from a title.  If there is a homeowner's association or other covenants on the property, the buyer should be informed by the seller of the fees and requirements of the association.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.The same as in the previous paragraph plus all information about the condo or town home covenants or ordinances that affect the use and title to the property.   Some property in Mississippi is leasehold property where the buyer only gets a leasehold interest.  The State of Mississippi has what is called sixteenth section land that the use and funds can only be used by the school districts.  Each township has 36 sections so 1 section (approximately 1 mile square ) is set aside for school funds.  There is also leasehold land for the Pearl River Valley Water Supply District.  This is located in Central Mississippi and touches Madison, Rankin and Leake Counties.  There is a 60 year lease and each time the leasehold interest is transferred, the lessee can either continue the current lease or if there is a new mortgage on the property, the lenders usually require that the buyer get a new lease from PRVWSD so that the lease will be good for the life of a 30 year loan.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.a)  My usual fee for a closing transaction is $500.00 plus out of pocket expenses such as recording at the Chancery Clerk's office ( Example a deed in most counties is $12.00 (except where electronic filing is available and the clerk adds a $5.00 convenience fee), a deed of trust if there is a loan is $17.00 plus the convenience fee in Madison and Rankin Counties.    The $500.00 includes furnishing a generic contracts in PDF which can be completed and printed from a computer, preparing the deed and sending it for recording.  One of these generic contracts is attached for your reference.

  b) If a new loan is being acquired by the buyer, the lender will require a CPL(Closing protection letter) which is $35.00 to the title insurance company.  A title commitment is also required by lenders (I don't charge extra for the commitment as there is no additional out-of-pocket expense to me.  Title endorsements which are required on some loans costs from $25.00 to several hundred depending upon the endorsement required by the lender.  Usually they are under $50.00.

  c)  Title insurance depends upon the amount of the loan and the value of the property that is being insured.  Basic lender insurance is $3.00 per $1000.00 value that is insured.  We recommend owner's title insurance in addition to the lender coverage as the lender coverage does not cover the buyer.  To have buyer coverage along with the lender coverage (it's called simultaneous issue) is an addition $1.00 per $1,000.00 value plus a $50 simultaneous issue fee.   When owner's coverage is purchased, the premium will be based on the total of the owner's coverage.  Example, a $250,000.00 appraised value home would be 250 x $4.00 or $1000.00 plus the $50 simultaneous issue charge.  Assuming that the loan is less than $250,000.00, this would be the premium.  If the loan is more than the sale or appraised value, the premium would be based on the total amount of the loan.  This is a rare happening but it does apply occasionally.    If there is no loan involved, the owner's premium is $4.00 per $1,000.00 of the value insured.  The premium for title insurance is a one time premium and is good for as long as the buyer/insured owns the property.   Many people don't think that they need owner's coverage but there are many reasons why you should have this coverage.  See the attachment '50 ways to lose your home'.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Generally the only legal fees that arise are a result of a problem with the title on the property.  This is the responsibility of the seller to clear the title for the buyer.  The seller can hire an attorney or I can do the work.  My billing fee for legal service is $250.00 per hour.  I don't charge any ‘legal' fee as long as the title is good.

Missouri

• Q.Does an attorney need to be present at closing?

  A.For your own protection and peace of mind it is strongly advised to bring your own attorney to closing.  While not required by law, the Buyer with a loan will be given upwards of 100 pieces of paper in legalese to review and sign in the course of about 30-60 minutes.  In addition, both Buyer and Seller may be asked to sign documents by title company or lender, or even the other party, documents they should not have to sign that unduly give away their rights.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Missouri requires disclosure of whether Seller has any knowledge regarding whether methamphetamine is known to have been located or produced on the property.  We have other highly suggested disclosures and inspections we suggest to our clients, on a case by case basis.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Unfortunately, in my opinion, the “standard” contracts out there seem to be getting less and less Buyer/Seller friendly all the time.  This has led us to develop an addendum for Buyers and one for Sellers to give them more protection than they would otherwise receive.  While we are not adverse to using such forms, we tend to prefer to customize them for our Client’s needs, based upon the specific situation.

• Q.What legal documents does the seller need to provide during closing?

  A.It is customary in the St. Louis area to close at a title company, and it is generally required that they provide government-issued photo ID.  The title company may have required documents they need signed as well.  Any amendments to the contract that have not been submitted to the title company should be brought to closing.  If either party promised anything in the contract documents, those items should also be brought.  Examples include:  home warranty (or ID for accessing it online with paid receipt), lien waivers from contractors and/or paid receipts for work done, approved municipal, county and/or utility company inspections.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Yes, there are documents to be filled out and signed by the condo association.  In addition, we recommend the buyer of a condo or HOA property review the Restrictions on use of and building on the property.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.We offer flat fee pricing that is posted on our website www.HomeSweetLegal.com.  Depending upon which package the client chooses, amendments may or may not be included in the fee.  If not included, our website posts a flat fee for amendments as well.  Most FSBO Sellers have us provide the disclosure document, but do not ask us for help filling it out.  Most ask us to prepare/review and negotiate the contract terms, review any repair requests that come in after the inspections are done, and review closing documents, title or survey issues that arise and sometimes attend the closing as well.

  2016 package pricing ranges from $699 – $2,499 depending upon the level of service chosen by the client.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.There would only be additional legal fees if we were asked to do something that was not already included in the flat fee package the Client chose.  Clients will always be informed prior to incurring the charge so they can decide if they want us to proceed.  Due to TRID federal closing guidelines on residential deals, last minute work may need to be paid for outside of closing.

Montana

• Q.Does an attorney need to be present at closing?

  A.No, there is no legal requirement in Montana that an attorney be present at closing, although having a knowledgeable attorney assist in the preparation of the documentation is highly recommended.  The standard real estate association forms are copyrighted and a seller without an agent is precluded from utilizing such forms.  Closing generally occurs at title companies.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.There are many disclosure requirements under Montana law, and they are different for buyers, sellers, dual agents and brokers.  Montana law requires that all adverse material facts must be disclosed, which includes any fact that “materially affects the value, affects structural integrity, or presents a documented health risk to occupants of the property” or “materially affects the buyer's ability or intent to perform the buyer's obligations under a proposed or existing contract”.  Additional disclosures include, asbestos, mold, radon, noxious weed, non-remediated methamphetamine drug labs, information related to sexual or violent offender registration (known as Megan’s Law) and lead based paint in transactions involving the sale of residential property built before 1978.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Lack of a specific legal description is a chronic problem in Montana real estate contracts potentially affecting equitable remedies.  Because the sales contract is the comprehensive document laying out the terms of the transaction, there are many requirements and necessary provisions that must be included in addition to any required disclosures.  This form should be tailored to each transaction to address the specific circumstances related to the property, the buyer and the seller.

• Q.What legal documents does the seller need to provide during closing?

  A.The seller will need to provide proof of identity to verify ownership.  The seller executes documents to transfer legal title to the property or reflect any release of encumbrances or security interests (deed, trust indenture, mortgage, etc.), which are provided by the closing agent or attorney.   In addition to the transfer documents, Montana law requires that a realty transfer certificate be filed with the county clerk and recorder and water rights ownership information be updated with the Montana Department of Natural Resources and Conservation.  If personal property is being transferred along with the real property, a bill of sale is also often included.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.A seller is required to provide certain disclosures related to sales of condominium units, and a purchase and sale agreement may not be effective until 72 hours after the prospective purchaser has received such required documents.  It is advisable for a prospective purchaser to carefully review all governing documents of the condominium association prior to any purchase.

  A deed conveying ownership of a condominium in Montana must contain certain information, including (1) a description of the land, the name of the property, and the recording index numbers and date of recording of the declaration; (2) the unit designation of the unit; (3) the use for which the unit is intended; (4) the percentages of undivided interest in the common elements appertaining to the unit; and (5) any further details the grantor and grantee or lessor and lessee may consider desirable.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.We charge based on the attorney’s hourly rate (from $160-$285 per hour) multiplied by the time spent on the transaction.  If the documents are relatively simple and there are no significant revisions needed, we generally estimate around five hours, but this will vary depending on the specific circumstances and details of the specific transaction.    In all circumstances possible, we have associated perform the drafting work prior to a partner review the documents in order to keep the costs down.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.There are no additional legal fees required at closing, only recording fees and closing costs of the lender and title company.

Nevada

• Q.Does an attorney need to be present at closing?

  A.No. An attorney is not required to be present at a closing.  However, if desired (as often is the case with clients who are familiar with practices from the East Coast), there is no prohibition against an attorney being present.  However, generally all documents have been approved of in advance by the parties, and thus the “closing” consists typically of nothing more than the Escrow Officer obtaining signatures and closing funds.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Although there are numerous disclosures made by the initial seller of a residence (i..e, the builder or developer), some of which are legally required and some of which are just provided as a matter of custom and practice (and obviously to eliminate liability for non-disclosure), a reseller need only disclose known material defects (including ones that may have existed in the past and have been previously remedied).  In this regard, the Greater Las Vegas Association of Realtors has produced a form that has for all practical purposes been approved of by the Nevada Division of Real Estate, and which encompasses all of the requisite disclosure.  Note that such disclosures may be waived by a prospective buyer, provided that such written waiver is in compliance with statutory requirements.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.There are no special, state specific requirements that need be addressed within the sales contract.

• Q.What legal documents does the seller need to provide during closing?

  A.To complete the closing, the seller will need to:  execute a Deed and such related documents as may be needed to have the same recorded; provide escrow with any documentation necessary for escrow to be able to complete the conveyance and issue the buyer an acceptable title policy (e.g., a trust certificate if seller is a trust, or entity documents and resolutions should seller be a corporation, LLC or an otherwise legally organized entity); execute escrow instructions and settlement statements; and provide the escrow officer with information sufficient to obtain the amount needed to release any existing liens or other encumbrances (not expressly agreed by buyer to be assumed).

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.If the property is subject to any type of HOA, then seller must provide buyer with a full set of all documents establishing the rights of such HOA relative to the property (e.g., copies of applicable CC&R's, information as to assessments (whether future or past due) and what is required for the buyer to register its new ownership of the property with the HOA.  Very often the documents may be ordered and received electronically, directly from the HOA or its authorized agent.  The cost to obtain such documents is negotiable between buyer and seller.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.Assuming your indicated parameters, the cost to seller (which is still going to be far less than the payment of a broker's commission) would be estimated at a low end of between $2000 and $2500.  Note that in a recent transaction handled, and which involved many unforeseen and unanticipated deal changes, such drove the legal fees to around $6000.  Thus, the amount will obviously depend upon how much the attorney needs to either prepare or oversee and the complications that might arise along the way.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Other than the items delineated in answer to Question 6, not more than an additional $500 to $750 might be incurred, and not at the closing.  Such may result to ensure for one party or the other that all intended closing matters have been addressed, required documentation has been received, and that all of the foregoing are understood.

  No two sales are exactly the same,  Some are very simple, while others run into unexpected problems, some of which are resolved without much ado, and others that are so insurmountable as to warrant a cancellation of the entire deal.  Bear in mind that should such a cancellation result, it may ultimately become necessary for the escrow to file an interpleader lawsuit against the parties to have a court decide as to the disposition of an earnest money deposit where the parties have been otherwise unable to agree.

New Jersey

• Q.Does an attorney need to be present at closing?

  A.No. Not necessarily.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.In New Jersey, Seller’s Disclosure is optional. But we often provide the seller with the Disclosure form. Homesellers are also to provide disclosure information on lead paint, especially for houses built before 1978. I would also recommend getting a home inspection and give the report to potential buyers.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Sales contract is a legal document stating the agreement of purchase and sale of property. Once it is drafted by an attorney, the buyer and seller should thoroughly read the contract before signing.

  The contracts often includes standard clauses such as the purchase price and payment method, purchase agreement and property description, items included and excluded from sale and termite inspection. Survey affidavit and certificate of occupancy, flood hazard zone, closing requirements and the entire agreement.

  There is also what we call the Statue of Frauds that requires all land sale contracts in written form. This is required in New Jersey.

   

• Q.What legal documents does the seller need to provide during closing?

  A.Aside from the Escrow, Seller Disclosure Statement and Contract Provisions, it is typical in New Jersey for the Seller’s Attorney to execute the Disclosure of Closing on behalf of the seller. After the Closing Disclosure and other legal documents are exchanged, if there are any outstanding property mortgage, this will be paid and the remaining monies will go to the seller.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.For condos and town homes, there needs to be a Deed, other transfer documents and a clear title. There might be some mortgage documents and survey certification.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.Generally, most Real Estate Attorneys in New Jersey charge from $700 to $1400. It really depends on the services provided as well as the level of representation needed. We often discuss thoroughly with our clients all necessary fees.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.As per law regulations, title work and title searches range from $1500-$3500.

  Fees to file the original mortgage and note range from $450-$650, while this depends if a 2nd mortgage is taken.

  There can also be Escrow Fees that should be paid to the Escrow Company.

New York

• Q.Does an attorney need to be present at closing?

  A.While there may not be a legal requirement for an attorney to be present, a seller MUST have an attorney because deposits must be held in escrow accounts between contract and closing AND there are transfer taxes that must be paid, most often with escrow checks. As a seller's attorney, I would never get involved in a deal where the buyer refused to retain an attorney.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.There is no NY requirement to disclose defects. NY is a ‘buyer beware' state where buyers are expected to do their own due diligence. HOWEVER there is a law in NY known as the ” Property Condition Disclosure Act ” which requires a seller of a house to provide a “Property Condition Disclosure Statement” to a prospective purchaser…BUT the law goes on to say that if the seller gives the buyer $500 at closing, the seller need not provide the disclosure. Obviously, EVERY seller I represent gives the $500 and not the disclosure.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Every state has it's own customs and forms for Real Estate….and we use different forms for Houses, Coops and Condos. Typically a seller's attorney has his or her own rider to be annexed to the contract and often, the buyers attorney has his or her own buyers rider.

• Q.What legal documents does the seller need to provide during closing?

  A.As to legal documents at closing, for Houses and Condos, a deed is required to transfer ownership. For a Coop, Stock and Proprietary Leases are the ownership documents (prepared by the Coop's transfer agent). Additionally transfer tax documents need to be provided for payment of NYC and NYS transfer taxes (and Mansion tax for deals of $1,000,000 or more). There are some more less significant docs that very from area to area and deal type to deal type (eg Smoke Detector/Carbon monoxide Detector affidavits).

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.The Title company will provide some additional documents depending on the nature of the transaction.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.My fee on a deal such as the one you describe would be $1650…payable at closing.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Yes…there are other fees like bank and title company fees. These are related to the peculiarities and amounts of the transaction itself and are impossible to estimate. This link will show you why it's impossible to estimate: www.elliman.com

North Carolina

• Q.Does an attorney need to be present at closing?

  A.Technically speaking, an attorney does not need to be physically present at the real estate closing.  However, an attorney must oversee a real estate closing in North Carolina.  The North Carolina State Bar has said an attorney can delegate the physical handling of documents and disbursement of funds to a non-lawyer who is supervised by the attorney but, the non-lawyer may not give legal advice to the parties.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.In residential real estate closings, the seller must deliver to the buyer a disclosure statement.  While the disclosure statement certainly asks about material defects, it is also intended to provide general information about the home (e.g. type/ age of HVAC system, year built, fuel sources, type of sewage disposal system, etc.)

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.At a minimum in North Carolina, a real estate sales contract must be in writing, state the sales price, adequately identify the property and be signed by all parties to the transaction.

• Q.What legal documents does the seller need to provide during closing?

  A.Generally speaking, a seller provides a deed, owner's affidavit (Form 1) and tax information at closing.  Additional documents may be needed, depending on the individual circumstances.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.It depends on the individual circumstances.  For instance, often condos and town homes have home owner's associations, which must be addressed in the closing.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.In my experience, the disclosures, sales contract and changes thereto are handled between the seller and their real estate agent.  The title search and related work is typically handled by the closing attorney.  Generally speaking, most closings are done on a flat-fee basis so a move in the closing date would not result in an increased cost.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Generally speaking, the closing attorney has a settlement fee, a title search fee and a seller document prep fee.  The settlement fee and title search are traditionally buyer expenses and the seller document fee is a seller expense.  Some attorneys may also have a courier fee.  You should be able to get a quote on all of these fees before selecting your attorney.  Other costs of closing vary widely depending on the individual circumstance.

Ohio

• Q.Does an attorney need to be present at closing?

  A.No, certainly not in Ohio.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.In some areas, there needs to be disclosure about lead paint but other than that typically there is disclosure about about latent defects and that's it. But there are various representations and warranties and any well-crafted purchase agreement but that's negotiated between the parties, that's not dictated by law.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.There are no requirements for a sales contract. I don't think anyone would be well-advised to proceed without the sales contract but I don't know that it would be required by the law.

• Q.What legal documents does the seller need to provide during closing?

  A.The buyer will normally craft the purchase agreement and then the seller will typically, after providing for example a Title Commitment and sometimes invariably a survey, the seller will also most typically at the end, provide a deed and that's really it. So the seller's attorney might draft, they might work on obtaining the Title Commitment and then the survey then the Seller's Attorney might provide what we would call Escrow Instructions because normally the title company handles the closing, so the Title Company needs instructions and then the seller's attorney would prepare the deed.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.There are documents that underlie all of those which need to be disclosed but I suppose there are additional items to be disclosed in that context but there would necessarily be additional documents to be signed. Like the Bylaws by the Condominiums Association would go with the condominium so that would be need to be disclosed but it would not need to be agreed to. But in many cases in Ohio, people who do a Residential Real Estate sell without an attorney. I don't think that's a good idea but in many cases they do and all they're using an attorney for is preparation of the deed. I don't advise that to anybody but I do think that is very common in Ohio, whereas in New York by contrast, would not be common at all but in Ohio it is very common.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.We don't provide any Title Services or Survey that would always be provided by a Title Company. The title company would normally also service out to escalate. The legal fees on a residential transaction, we find it to be very difficult to do it for less than $500. Depending on the value of the house and the wealth of the client and everything else, I would think it probably ranges anywhere from $500 up to several thousand dollars but I have found that it's difficult for a lawyer to do the minimum of what is required for less than, in Ohio, say $500 to $1,000. I've done it for $500 but I certainly don't get doing it for less than for $500. Over and beyond that, the seller would have some portion, he/she would pay for the Title Search, and things like that so the total closing cost would be more than $500 but the legal fee might be as little as $500. I think it's well worth spending for any dwelling.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.For the seller, no. The buyer might pay some legal fees like, let's say to the lender to the buyer but that would be the buyer, that wouldn't be the seller. The seller would normally pay, say half of the Escrow fee, they would pay for the Title Commitment, they would pay for the Survey, they would pay for the lawyer and then buying the title insurance and whatnot and the rest of the charges would typically be paid by the buyer.

Rhode Island

• Q.Does an attorney need to be present at closing?

  A.Yes. At the closing it is imperative to have an attorney present representing your legal interests.  Although you may have a real estate agent present, they cannot provide legal advice to you.  A seller's attorney will review all of the closing documents including the HUD settlement statement to ensure that the prorations for taxes, water, sewer, etc… are accounted for and are accurate and insure that no miscellaneous fees show up on your side of the settlement statement that should not be there.  A sellers attorney will explain in detail the Closing Disclosure/HUD settlement statement and will review and explain all documents presented to the seller for signature at closing.  Many times the buyers attorney or bank's attorney will have the seller sign documents that are not required and that are favorable to the buyer.  Having an attorney present will help protect you from signing away your rights or taking on additional liability you were unaware of or not responsible for.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.A Rhode Island real estate lawyer for the seller will review the HUD-1 settlement statement or closing disclosure and make sure all pro-rations and charges are correct and will attend the closing with the Seller.

  Disclosure forms should specify the information for example: presence of hazardous material such as lead paint or asbestos,  local taxes or assessments, occupancy, termites.

  Standard Items Needed for All Closings:

  Smoke Certificate – R.I. law requires that all properties being sold be inspected by the local fire marshal for properly installed and operational smoke and carbon monoxide detectors and obtain a passing certificate prior to closing.  The original smoke certificate needs to be provided to the closing attorney.

  Final Water Reading – a final water meter reading should be obtained approximately 5 – 7 days prior to the closing date and provided to the closing attorney

  Oil Certificate – If oil remains in the tank and the seller wants reimbursement for same from the buyer at closing, the seller should obtain a certificate from an oil company stating the number of gallons remaining in the tank and the current per gallon price.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Prior to listing a property for sale the Listing Agent should at a minimum go to city/town hall and obtain the current owner deed to ensure that all owners are accounted for and names are spelled correctly for when it comes time to prepare the purchase contract.

  The Listing Agent would be well advised to look further into the title to account for all liens that currently exist on the property.

  When drafting the listing agreement, purchase contract and real estate closing documents, all current owners on title must be listed and must sign off on the documents.  We will review the Purchase Contract prior to signing and will attend the closing with the Seller.

  A typical Sales Contract in Rhode Island also includes the duration of Offer, purchase price, Escrow, Contingencies, Mortgage, Inspections, Buyer's Default, Representations and/or any additional terms.

• Q.What legal documents does the seller need to provide during closing?

  A.During the closing process, the seller should provide the Title Search to know if there are any liens or assessments. We will also have to update the title commitment, update the deed, the title insurance and if there are property taxes.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.In addition to the additional documentation require of a business entity seller, the biggest concern is that the business entity is active and in good standing with the State of Rhode Island.  The following documents and information will be needed from a business/corporate seller prior to the closing:  1.  Letter of Good Standing from the State of Incorporation/Organization.  2.  Letter of Good Standing from the Division of Taxation.  3.  Articles of Organization.  4.  Corporate Authority/Minutes or LLC Resolutions.  5.  If LLC, documentation on how the LLC is taxed.

  A condominium resale certificate must be requested and obtained from the condominium association well in advance of the closing.  Most condo associations charge a fee for the resale certificate ranging from $50 – $300 on average.  The original must be brought to closing.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.There are itemized third party costs that are to be paid by the seller. Attorney, closing and settlement fees is no less than $500.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Other 3rd party fees can also include Appraisal Fee, Surveys, document preparation, courier, tax services, Title search and insurance.

Tennessee

• Q.Does an attorney need to be present at closing?

  A.No, however, we strongly recommend having an attorney involved through this process. You would have someone negotiating on your behalf and walking you through the closing process. Plus, if you have decided to do a FSBO it is important to realize that the cost of having an attorney is most often not as much as you would expect.  Our office can handle everything from the contract through to closing and give you peace of mind through the process.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.The disclosure requirements can vary based on the transaction. When I prepare a residential FSBO contract, I include a Property Disclosure Form that will be filled out to aid in making sure all required disclosures are made.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Yes. Again this depends on the type of transaction and whether you are buying or selling. One example is that Tennessee is a split-closing state, which means that a different title company can represent each side of the transaction. Because of this, we rely on the contract to specify whether one or two title companies will be involved in the transaction.

• Q.What legal documents does the seller need to provide during closing?

  A.There are several standard documents that the seller will sign at closing, however, there can be additional documents depending on the transaction.  An example of the standard documents would be a Property Tax Proration Agreement, an Owner’s Affidavit, a 1099, a Non-Foreign Affidavit, a Property Disclosure form, and a Warranty Deed.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.This will depend on the transaction. Being in a condo, townhome, any type of planned development will probably affect your transaction in some way. At the very least we will be contacting the HOA to determine what fees may be involved in the transaction.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.We are a title company and a law firm, therefore, we can handle everything from the contract preparation through to closing.  Our fees vary depending on the specifics of the transaction, but in a situation like this, you can expect a flat fee of approximately $1,500.00 – $2,500.00 to have us negotiate on your behalf, prepare the contract, and be available to talk to through the closing process.  This would also cover a simple amendment such as changing the closing date.  This does not include closing costs or title insurance, which would be involved whether it was a FSBO transaction or not.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.There would not be any other attorney’s fees paid through closing (unless additional services were provided).  Of course, however, the closing costs that are part of the transaction would be paid at closing.  You can obtain an estimate of those fees by using the TRID Calculator on our website: www.tresslerassociates.com

Texas

• Q.Does an attorney need to be present at closing?

  A.No.  This is not required in Texas.

   

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.In Texas, there are numerous disclosures required depending on the nature of the transaction. Here are some of the most often required disclosures:

  1)    Seller’s Disclosure of the Property Condition

  2)    Notice of Membership in Property Owner’s Association

  3)    Seller’s Disclosure of location of conditions under the surface of Unimproved Real property

  4)    Notice if property is located in Public Improvement District

  5)    Notices required for residential contracts for deeds

  6)    Notice Regarding Insulation to Buyer of New Home.

  7)    Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint

  8)    Asbestos Disclosure Notice.

  9)    Notice Regarding Sale Subject to a Recorded Lien.

  10) Storage Tanks Disclosure Provider.

  11) Notice to Purchaser Regarding Restrictive Covenants.

  12) Notice to Purchaser Regarding Coastal Area Property.

  13) Notice to Purchaser of Property Seaward of Gulf Intracoastal Waterway

  14) Notice Regarding Possible Liability for Additional Taxes.

  15) Notice Regarding Possible Annexation.

  16) Notice for Unimproved Property in a Certificated Service Area of a Utility Service Provider

  17) Utility District Notice

  18) Notice to Purchaser of Property Located in Certain Annexed Water Districts

  19) Notice to Purchaser that Property Is Located within the Area of the Alignment of a Transportation Project

  20) Certificates of Mold Remediation

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.It is always very important to be sure you include all material terms of the sale and purchase in the Sales Contract.  If minerals are involved, it is very important to include the appropriate language in the Sales Contract.

• Q.What legal documents does the seller need to provide during closing?

  A.In general terms, the Seller will provide a Deed, Settlement Statement, Evidence of Seller’s authority to sign, Release of Liens, if applicable, and any other documents agreed between the parties related to special contractual terms.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Yes, there are a few other documents required in condominium transfers such as a Condominium Resale Certificate.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.We charge a closing fee of $165.00 per party plus additional document preparation fees, which vary depending on the number of documents being prepared.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Not normally.

Utah

• Q.Does an attorney need to be present at closing?

  A.No, there is no requirement that an attorney be present at the closing of a real estate transaction in Utah. However, an FSBO buyer or seller is wise to have a real estate attorney review the closing-related documents (deed of transfer, settlement statement, closing instructions, etc.) prior to closing to ensure that they are correct.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Disclosing known material defects is the basic rule in Utah. State statutes also provide that if an owner has actual knowledge that the property is currently contaminated from the use, storage, or manufacture of methamphetamines, the owner shall disclose that the property is contaminated. An owner is not required to disclose that the property is stigmatized (the site of a homicide, suicide, etc.).

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.In Utah there is a standard approved Real Estate Purchase Contract (REPC) form that has been approved by the Utah Real Estate Commission and the Attorney General. Although it is not required, it is used in most residential transactions. It is a pre-printed form with various boxes to be checked and blanks to be filled in (an addendum is often also necessary to address issues that don't fit neatly within the provisions in the approved form). While the standard approved REPC will usually suffice, a purchase agreement drafted by an experienced real estate attorney will include many terms which are more favorable to the client's interests. However, in my experience, unless both sides are represented by attorneys, the standard approved REPC is often the strategic choice, because both sides are usually more comfortable with it and therefore more likely to agree to its terms and sign it. Regardless of the form that is used, the key is to understand the contract and the significance of each of its provisions, and to make sure the contract reflects the client's objectives.

• Q.What legal documents does the seller need to provide during closing?

  A.The primary documents that are typically involved in a real estate transaction include the purchase and sale agreement (REPC), any applicable addenda, seller’s disclosures form, title commitment, settlement statement, deed of transfer and title insurance policy. Many additional documents may be necessary, depending on the particular transaction – for example, loan documents, seller financing documents, lease-back agreements, etc.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.A condominium or townhome is part of a multi-unit project and is usually subject to various additional legal documents, including a Declaration of Covenants, Conditions and Restrictions (CC&Rs) and the governing agreements of an Owners’ Association (Bylaws, etc.). Specific additional documents may be required in connection with a sale, depending on the particular project and its governing documents.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.For a flat fee of $850.00, I provide the following FSBO services:

  1)      Real Estate Purchase Contract.     Prepare all necessary contract documents (offers, counter-offers, addenda, etc.) in accordance with client objectives.

  2)      Title Insurance.     Coordinate with the title company to open an escrow account, hold the earnest money deposit, and provide the title commitment. Review the title report and consult with the seller regarding any title issues that need to be resolved before closing.

  3)      Property Disclosures.     Advise regarding the legal requirements related to property disclosures and discuss disclosure issues with the client.

  4)      Settlement and Closing.     Review the closing costs and settlement statement for accuracy, prepare the deed conveying title and coordinate with the title company to ensure that all closing requirements are completed.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.No, the flat fee of $850.00 includes all of the services described above, and is paid from the seller’s sales proceeds at closing, so there are no out-of-pocket expenses to the seller.

Vermont

• Q.Does an attorney need to be present at closing?

  A.No.  If a seller is satisfied that they understand all the documentation and closing calculations before the closing, there is no requirement that an attorney attend the closing.

• Q. Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.Vermont law requires that all residential properties have smoke and carbon monoxide detectors and a special form is used for disclosure.  Older homes also require a lead paint disclosure, with the seller responsible for providing the buyer certain educational materials that can be obtained from the state.  The seller is also required to inform the buyer that certain zoning and permitting requirements may affect their use of the property.

• Q. Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Vermont sales contracts typically address the complicated issue of allocating municipal school taxes when the seller is eligible for tax “pre-bates” from the state due to income sensitivity.  Unless the property is on municipal water and sewer, the contract will typically provide for inspections and testing.  In Vermont, most permitting problems are considered title issues, which means that the buyer (or buyer’s attorney or title agent) will need to search not only land records but permit files as well.  The contract typically provides a procedure, with appropriate timing, for resolving any title and permit problems.  In certain municipalities (e.g., the City of Burlington) additional provisions addressing local ordinances may be required.

• Q.What legal documents does the seller need to provide during closing?

  A.The seller is responsible for preparing a Vermont Warranty Deed and a Vermont Property Transfer Tax return.  If the Seller resides out of  Vermont,  real estate tax withholding is necessary, unless the seller obtains a certificate from the Vermont tax department showing that withholding is not required.  If the property is a subdivision or qualifies for Vermont’s Land Gains Tax, additional forms are required.  In some municipalities additional requirements are imposed by local ordinance.

• Q. Are other documents required for the sale of condos, town homes, etc.?

  A.Sales of condominium properties may require a Resale Certificate, which is usually obtained from the Condominium Owner’s Association or developer.  Often the seller, or seller’s attorney, would need to draft the certificate for signature.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.Since real estate in Vermont can be complicated and each case is different, we do not charge a flat fee for real estate transactions.  My hourly rate is currently $235/hr. but much of the pre-closing work is done by a paralegal at $125/hr.  A simple, uncomplicated closing for a seller, without extensive negotiation or corrective title work would generally run from $1250 to $2250.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.For the seller, no, unless title or permit issues require correction.

Virginia

• Q.Does an attorney need to be present at closing?

  A.Virginia allows non-attorneys to conduct closings but they are not supposed to practice law, give advice or interpret documents.  Therefore, non-attorney closings are a distinct disadvantage.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.None – Seller is not obligated to disclose ANYTHING about the property.  Virginia is a caveat emptor state.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Several mandatory disclosures related to Homeowner's Associations, warning the Buyer to do his own inspections and advising that the Virginia State Bar prohibits the unauthorized practice of law.

• Q.What legal documents does the seller need to provide during closing?

  A.Deed, affidavit of no liens and tax reporting forms.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Sellers are supposed to provide a disclosure statement from the Association and the buyer can cancel the contract if he doesn't like what he sees.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.We charge the buyer and seller each $375 to prepare a sales contract and related To Do lists.  Legal fees for closing run about $600 each.  We wouldn't charge extra for a simple addendum to change the settlement date.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Not legal fees but there are fees for title examination, title insurance and recording taxes.

Washington

• Q.Does an attorney need to be present at closing?

  A.No. In WA, buyer and seller each make a signing appointment with escrow a few days prior to the closing date. All closing documents are signed at that time.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.There is a statute that specifically sets out a seller’s disclosure requirements (for an improved property, RCW 64.06.020). This is known as the “Form 17,” the designation given to it by the local MLS (the Northwest Multiple Listing Service)

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.In WA – the last such state in the country – a contract for the sale of real property must include a legal description. If it does not include a legal description, it is not enforceable. Every other state has relaxed this very old requirement, but not WA. That said, a title report will be issued based on the address, and it will have a legal description that can be used by escrow. So assuming neither the buyer nor the seller objects, a contract without a legal description may be sufficient to close the transaction.

• Q.What legal documents does the seller need to provide during closing?

  A.Legal documents are prepared in escrow by the closing agent. In WA, a closing agent is a Limited Practice Officer. This position is regulated by the state Bar Association. An LPO has the authority to engage in the practice of  law to the extent of using forms to draft the legal documents necessary to close a real estate transaction (e.g. a deed, a deed of trust, etc.). A seller will of course be asked to sign lots of legal documents as part of the closing process, but the seller does not have to provide any of them (other than photo identification to show you are indeed the owner)..

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.A “townhome” is not a legally recognized type of property. A townhome can be owned entirely by the owner, i.e. dirt and all. In that instance, the shared wall and roof are usually subject to CC&Rs, and there may be an HOA. Or, a townhome can be a condo, where the owner owns only the interior space and the rest is jointly owned with other unit owners.

  The buyer of an existing condominium is entitled to an additional set of disclosures, called a Resale Certificate. This requirement is also set forth in a statute, RCW 64.34.425. Since this is required for every sale, the management company or HOA likely has a process for generating it (a modest fee can be charged). Sellers should reach out to let the responsible person know a resale certificate will need to be generated since a unit is being sold. They are good for 90 days so typically one is not ordered until the unit is under contract.

   

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.In WA, title services are provided by title insurance companies. I charge a flat fee of $500 up front and $1000 due at closing or six months, whichever comes first. This fee includes these services, as well as additional services. For example, I make sure my seller clients are aware of their title obligations so that they are not exposed to a title claim post closing.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.No other purely legal fees. The escrow fee is typically split equally between buyer and seller, this is generally around several hundred dollars each. By the terms of the “standard” contract (i.e. the one used by MLS member brokers) the seller pays for a title insurance policy to benefit the buyer. Finally, the seller pays an excise tax of 1.78%. As a very general rule of thumb, these other costs total 3%.

Washington D.C.

• Q.Does an attorney need to be present at closing?

  A.No, many title companies conduct closings (called escrow closing out West) and they are not attorneys. Our law firm does do real estate settlements and myself or one of our attorneys physically conducts the closing at no additional charge to either buyer or seller. Typically we represent the buyer and advise the seller in advance of this fact. On some occasions, we represent the seller and again advise the buyer in advance.

• Q.Other than disclosing known material defects, what are the additional disclosure requirements in your state?

  A.There is a comprehensive 7 pages Seller disclosure requirement that all residential sellers must complete and provide to the buyer prior to or simultaneously when a sales contract is entered into.

• Q.Are there any special requirements with the sales contract that need to be addressed in your state?

  A.Typically, we all use what is known as a GCAAR contract, authorized by the Greater Capital Area Association of Realtors. If you use this form, you comply with all of the requirements here in Washington, DC. For example, the seller has to disclosure issues regarding lead paint, underground storage tanks and the condition of the soil under the property.

• Q.What legal documents does the seller need to provide during closing?

  A.None, really. We order title, get a payoff number from the seller’s lender, and have the seller sign all appropriate documents in our office. In some cases, we ask the seller to request the payoff statement, because lenders are concerned about privacy. If the seller is not going to closing, we may want either to have a Power of Attorney signed, giving someone locally the authority to sign all documents, or we will fed ex all documents to the seller for signature.

• Q.Are other documents required for the sale of condos, town homes, etc.?

  A.Yes, there is a separate contract addendum when you buy a condominium. The seller has to arrange that the condo association provide the buyer with what is known as a “resale package”. This contains the legal documents, plats and plans, budget, info on special assessments, insurance information and the most recent audit report from an independent CPA. The buyer has three days after receiving those documents to back out of the contract, although it our firm is representing the buyer before the contract is signed, we generally change that to 5 or 7 business days. Unfortunately, many potential buyers do not read those documents.

• Q.Assume a seller was selling a $250,000 house. You helped the seller with the disclosures, sales contract and other required legal documents required for the closing. The closing date was moved once and one amendment was needed to cover that. How much would you charge for services and documents? (If you provide title services too, please break that out separately.)

  A.Unless there are major legal issues involved that required the closing date to be moved, there would be no additional charge – either for legal or title services.

• Q.Are any other legal fees required at closing? If so, what are they and how much do they cost.

  A.Yes, we typically will charge a $400 fee to both buyer and seller, although we are very flexible. The fee can be waived depending on the circumstances; for example, this is a long standing client, or the price of the house is very large.