If you are buying, selling, or refinancing a piece of real property, you need a real estate attorney by your side to protect your interests and make sure everything goes according to plan. Understanding what closing attorneys are, and what they do at a real estate closing can provide you with peace of mind and ensure that you get what you bargained for in the sale.

What is a Real Estate Closing Attorney?

Real estate transactions involve a number of professionals, including realtors, agents, loan officers, and title companies. But there should also be an attorney at every real estate closing. Connecticut real estate attorneys are involved in many different kinds of real estate transactions and disputes. One of their key responsibilities is to oversee the transfer of real estate ownership. When they do, they are acting as a “closing attorney.”

What Does a Closing Attorney Do?

A closing attorney’s job is to ensure that the transaction is legally sound and valid, and that the transfer follows all state and local laws. Closing attorneys will review the property title and closing documents prior to closing. They will also secure the transfer of funds from buyer to seller, and satisfy any outstanding liens, mortgages, or other debts secured by the property. This ensures that the terms of the parties’ real estate contract are fulfilled, buyer obtains a clean title, and the seller’s obligations related to the property are satisfied.

Who Hires a Closing Attorney in a Real Estate Sale?

Connecticut state law requires that a licensed Connecticut attorney be involved in every real estate closing (except for home equity loans and other loans where the home is offered as a security). It’s important that both buyer and seller each have their own closing attorney. While real estate agents have their own favorites, your choice of counsel is yours and yours alone. Just ask your agent to send us the contract when you have it and we can swing into action on your behalf to make sure the closing gets done.

Closing Attorney for Homebuyers

By hiring a closing attorney, buyers can ensure that they receive what they bargained for, without any unreleased ownership or security interests or obligations that could result in a cloud on your title. This is essential in every deal, including if the property being purchased:

• Has multiple owners
• Is occupied by tenants
• Is being sold “as is”
• Has conditions on the transfer
• Involves a complicated financing structure

After resolving such matters so that the closing proceeds without problems, we offer title insurance, to make sure that your interests, which are separate and distinct from those of your lender, are protected.

Closing Attorney for Sellers

Property sellers also benefit from hiring their own closing attorney. That attorney can review the paperwork and the title agency’s work to identify any title disputes. They can also ensure that any secured debts connected to the property are paid in the correct order and are satisfied, to avoid collections attempts after the fact. Finally, a closing attorney for sellers can help in the case of a purchaser with “buyer’s remorse” who seeks to breach their purchase agreement and back out of the deal.

Closing Attorneys’ Role in Refinancing a Mortgage

Connecticut borrowers are also required to hire a closing attorney when they enter into a new mortgage contract or refinance their property. Just like when a property is bought or sold, the closing attorney is there to make sure that everything is done properly and according to state law. When a property is mortgaged or refinanced, the closing attorney’s job is to:

• Obtain and review a title search on the property,
• Prepare and oversee the execution of the closing documents
• Oversee the issuance of title insurance
• Ensure that the prior loan is paid off and discharged from the borrower’s record
• Record the mortgage with the State of Connecticut
• Supervise the transfer of funds to the borrower

Often, in these cases, the closing attorney is hired by the bank or mortgage lender. That means their top priority is to protect the lender’s interests and make sure the mortgage can be enforced if the borrower defaults on the loan later on.

Retaining a Real Estate Closing Attorney

Real estate closings are highly technical and involve a lot of paperwork. Working with an experienced closing attorney can ensure you know what is happening, and your interests are properly protected. Our goal is to make the transaction move along as swiftly and smoothly as possible by proactively making sure all the real estate conditions have been met and the documentation is all in place.

At Lawrence & Jurkiewicz, we focus our various practice areas on helping people. We know how to help homebuyers and sellers with property transfers and real estate closings in Connecticut. Our real estate attorneys will meet with you to review your purchase agreements and property interests, perform due diligence, and see the closing to completion. Please call 860-626-1333 or contact us for a consultation.