I am a closing attorney and the following is a description of my services.
When buying a house an empty lot, commercial or industrial property, you as the purchaser may ask, ‘what is the role of the closing attorney? There are five primary functions handled by the closing attorney during a real estate transaction:
1. Title examination: The buyer must have a clear title for the property. Without a clear title, the sale and eventual transfer of property may become much more complicated. Upon receipt of a real estate purchase proposal (an agreement should be signed once due diligence has been completed), the closing attorney will begin to check the title to the property being sold.
The title examination is for the purchaser to evaluate the title to the real estate. The purchaser will need to know whether there are certain restrictions of use, easements, encroachments or whether the title is marketable and clear for the seller to transfer the property to the purchaser.
The closing attorney will identify any existing mortgages against the real estate that will need to be satisfied at closing in order to transfer good title, the closing attorney will also have an overview of what liens, judgments, and mortgages, if any, exist that must be addressed prior to signing a purchase agreement or at closing. A lien on the property, even the presence of a tenant should raise concerns with the status of the title.
2. Title Review: This protects the buyer in the event a future problem is found with the title. Once the title examination is completed, the closing attorney prepares an opinion on the title, which is preliminary to signing a purchase agreement. I make it a point not to enter a purchase agreement nor to put earnest money upon signing a purchase offer because of potential claims of interests, rights, and liens against the subject property being purchased.
3. Coordinator: The closing attorney in Mexico creates lines of communication between all parties involved in the real estate closing. The closing attorney not only talks with buyers and the seller but coordinates with real estate brokers, surveyors, a trust bank, and a notary public), the county tax department, the Escrow agent, home inspectors, contractors, homeowner associations, and the seller’s attorney. The closing attorney has to remain mindful of all the issues that must be addressed for the closing transaction to go smoothly but must also communicate with multiple parties to coordinate the timely close of the transaction.
A great deal of the coordinating and communicating occurs throughout, but is most significant when the closing attorney has confirmed that the property is free and clear and starts to draft a purchase agreement, then it coordinates with all parties involved leading to the actual closing and must account with multiple parties on dates and dollar amounts for closing.
4. Review of documents: On the day of closing the closing attorney is present at the notary public office to review the various instruments associated with the fideicomiso, either a new one or an assignment of trust rights from the seller (assignor). The closing attorney is available to explain documents such as a deed, a note, a deed of trust and disbursement instructions at the end of the transaction.
5. Record and disburse: The closing attorney is responsible for closing on the transaction and coordinates with the escrow agent for the distributing of all monies. The closing attorney teams up with the notary public and monitors the local registry to update the title, and record the deed of trust.
While I reside in Tijuana, the laws of Mexico allow me to practice my profession anywhere in the country, unlike in the United States.
After reading this, you can see that my job as a closing attorney’s role is vital to the real estate transaction. Selecting a closing attorney may prove critical, more so because thus it is advisable to seek a specialized and experienced closing attorney that is organized, attentive to details and mindful of the importance of your transaction.
Lastly, most real estate agents rely on junior staffers to handle due diligence and later drop the file containing all documents at the notaryś office, who BTW will not guide you through the process nor performs due diligence.
Contact me today if you need a closing attorney for a real estate transaction.
Phone 619 409 2610 US landline.
664 188 7001 in Mexico.