Keith S

We have just completed negotiations and agreed on a house to buy. Now we have been told that just one attorney handles the sale and purchase on behalf of both parties. It seems a bit strange to us in that we are used to both parties having their own legal guy to look after their interests.
We have been told that we can use our own, and pay the costs of course. But I'd be happy to go with the first option if it is "the norm".
Any advice would be welcome.

md95065

The "norm" varies depending on which state you are in.

In many states there are no attorneys involved at all.

There is, however, no reason why you have to do things the "normal" way - if it gives you more peace of mind to hire your own attorney to review the documents, advise you, and make sure that you understand exactly what you are doing then you should go ahead and do it that way.

Bob

Yeah, each state, different rules and norms...so no idea.

Usually it's a bunch of piggy realtors screwing you over, you might be different and have a lawyer do it. Though I'd be wary of relying on the sellers agent dealing on your behalf, way to much conflict of interest there.

fatbrit

The first option is not the norm.

RayM

Seems to vary a lot. No attorneys are involved in Missouri unless you really want them to be. We had a buyers exclusive agent who guided us through the process. I was amazed how easy it is.

sasciaf

I recently bought a foreclosure but managed to get around the financial inst's threats of $ penalties and hired my own lawyer. It was the best thing I could have done as she 'mothered' me through the process and assisted with the sometimes alien terms used by the seller!
Good Luck!!

Tarkak9

(Did you have representation to begin with?) It sounds as though you've answered your own scenario... "completed negotiations" ... you are beyond/completed the need and role of representation; its a matter of following up in writing and sign what you have agreed and negotiated, therefore one party is capable and able to perform such duty. The norm isn't really to do things verbally as a) can't be enforced b) "nothing exists unless its in writing"...

What state are you in? If you still have doubts and want to ensure your interests are conveyed in writting exactly to your wishes, negotiated and agreed upon, then yes, further consultation with an attorney is needed as all and any contracts have legal and tax consequences for both parties.

Every orchard has its rotten fruit. I've also known people get "screwed over" by attorneys because thier attorneys weren't thinking about various scenarios, motivation, issues about a property to address and think about (hence negotiate) and something has gone wrong too late or found out something after closing and the burden of expense lies on the new homeowner, all of which could have been avoided. Many attorneys' role are merely to follow instruction(s) and to translate one's wishes into written agreement under legal terms and definitions.

S Folinsky

As noted, the practice varies from State to State and sometimes, even within a state. Here is a summary wikipedia article.

When one purchases or sells a house, there usually a need for an "escrow agent." This is often performed by an attorney as a neutral party with joint obligations to the buyer and seller. Here in Southern California there are independent escrow companies. When I lived in Northern California, the custom was that escrow duties were performed by the Title Insurance companies.

BTW, a title check is often considered performance of a legal duty which has to be done by an attorney. Of course, this is often done by a Title Insurance Company and the attorney simply assumes responsibility. Here in California, an attorney usually does not get involved in the title search unless there is a complication in "clearing title."

[I once did a personal title check on my own house just for practice. It was kind of fun. I'll leave it to the Title Insurer computers].

Keith S

We haven't had representation as such, other than working with the Realtor to find the house. The house is in Jacksonville FL.
We signed the Contract of Offer which, as I understand it, becomes the Contract of sale once the seller signifies his acceptance of the offer and we proceed to settlement.
That has happened but it now has to go to the seller's bank as it is a short sale.
We pay a fee to the seller's attorney for providing that contract but it is only in the region of $80, which, we are advised by the Realtor, is just about our total closing costs.

Tarkak9

Yeah, once all parties agree as evident of signatures, you have a contract and an agreement to buy/sell property (typically you need earnest money too to have what they call legal consideration). But, in your case, the whole deal is contingent upon bank approval of the payoff/shortsale. Shortsales etc have been flogged to death on here but don't give up looking at/for property just yet! Different banks have different timelines with when they'll respond to the shortsale offers.
Double check with your realtor about that $80 being the 'total closing costs' ...

Nutmegger

I hope that you are having the property inspected. Then, if there are issues, you really need a lawyer who is working just for you to hammer out agreement as to what has to be fixed or get a break on the price -- and to ensure that you can back out and get your deposit returned if you are unable to get a mortgage or anything bad happens. Also, just an $80 fee sounds way off. Have they advised you about all the other closing costs, the various conveyance fees, title insurance, pro-rated taxes, pro-rated oil in the tank, etc? One usually seems to be writing checks forever at a closing! It does seem like false economy not to have a lawyer whose only interest lies in helping you, and not the seller.

Sally Redux

I would be amazed if closing costs are $80, unless somehow the seller is paying them all.

kscards

We too were perplexed when purchasing our home in Florida Oct 2010, mainly at the sheer speed of process, but it's a lot clearer than uk system. Our realtor arranged everything for us, we paid a deposit to an escrow agent (attorney) via our bank, then a few days before closing/completing we paid balance due. Our realtor arranged for a buildings surveyor to inspect property, timbers especially, the escrow agent arranged for another surveyor to measure out plot and confirm exact boundaries on our behalf. Day before closing, we were permitted to inspect property "walk thru" just to confirm we were happy with home now that all furnishings etc removed. Met at seller's realtor office with seller, us, our realtor and escrow agent (no bank involved as cash transaction). But we did pay a lot more than $80 closing fee plus had to include 2011 property tax $2,000, a proportion of which was repaid by seller that overlapped. So would get that figure clarified in writing. Hope this info helps.

Keith S

Thanks Kscards, it sounds exactly the process we have. There will be the builders and pest inspection and possible survey. No doubt there may be adjustments in taxes. But it is all certainly a lot less complicated than we are used to.

kscards

All the Best Keith S. in your new home - hope you love it as much as we all love ours and the beautiful state of Florida! I think we made offer on Oct 2 and moved in on Oct 25... Oh how England could learn a thing or two eh! One thing I forgot to mention which has been so useful is to get seller to include a Homebuyers Warrantee if they havnt already. Covers things like air con, cooker, fridge/freezer etc - we didn't know about it but realtor negotiated on our behalf. Costs seller about $600 for year, but this service has been a godsend - enough that we'll continue annual cover via American Warranty Co.