Choosing Your Closing Agent!

 

I often receive calls for a “quote” to handle the closing on the purchase of a residential property.  I always request a copy of the Contract to review key information such as parties involved, purchase price, closing date and contract terms—all to gain insight into the transaction details to assist parties, especially buyers, to close the transaction. After all, a home is the largest purchase most Americans will ever make, however, buying or selling a home can be full of legal issues. 

The key driver of the “cost” for closing a real estate transaction is the purchase price.  Every law firm and title company handling a residential closing derives the bulk of its fee from the title insurance premium.  Rates (known as “promulgated rates”) are driven by the purchase price.  Add in “endorsements” (“riders” to policies required by lenders), and the “settlement fee” for handling the file and actual settlement process, and that’s generally how “cost” is determined.  That’s it.

I was reminded about all this when I received a call from a buyer for a quote.  In this case, the purchase price was $800,000 and the fee was calculated at $4,500—with $3,600 being the expense for the title policy.  I reminded this buyer that he will have to pay “$4,000 + some amount” to someone whether it’s Reyes Law Group or a title company. 

PERPETUATED FALSEHOOD: Buyers are constantly fed misinformation that they will pay more if a law firm closes the transaction.  FALSE!  In residential closings – there is rarely ANY difference in pricing between a law firm or title company.

BUYER BEWARE: Many parties to real estate transactions don’t want “lawyers” involved on behalf of buyers because they may stall the closing due to “legal issues.”  This does not protect the interest of buyers.  If the property you’re looking to buy has a legal issue – when would you like to address and resolve it—BEFORE or AFTER you buy it?  That’s why you need a lawyer

THE TRUTH: Law firms charge no more or less than title companies to act as closing agent.

BENEFIT OF LAW FIRM: When legal issues arise, they must be handled.  When title companies run into legal issues, if not necessarily owned by lawyers, they look to find legal help.  In that instance, you can expect to pay more.

UNDER THESE CIRCUMSTANCES, WHAT MAKES MORE SENSE?

Contact the REYES LAW GROUP—YOUR CLOSING AGENT! With over 30 years experience 

Carlos J. Reyes is the Founder and Managing Partner of Reyes Law Group specializing in real estate development and transactional work (residential and commercial), asset protection and preservation, commercial leasing work, financing and investment counsel, business transactions and trade secrets and noncompete business/commercial litigation.  Mr. Reyes is an AV Preeminent Peer Rated Attorney by Martindale Hubbell which is awarded to lawyers with the highest ethical standards and professional ability.

 

Reyes Law Group serves the Broward, Miami-Dade, and Palm Beach county areas  at 150 South Pine Island Road,Suite 210, Plantation, FL  33324.  For more information about the Reyes Law Group, visit our website at www.reyeslegal.com or contact Nancy at (954) 369-1993 to schedule a free consultation to review your legal needs.

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The hiring of a lawyer is an important decision that should not be based solely upon advertisement.  Before you decide, ask us to send you free information about our qualifications.

Written by Reyes Law Group