Real Estate

Why should I hire Cutler & Associates to represent me at a real estate closing?

Whether you are buying, selling or refinancing real estate, Cutler & Associates has the long-term experience to successfully represent your interests. Our attorneys and staff comprise a talented, resourceful team that will assist you in navigating challenges and increasing the value of your transaction. Cutler & Associates is also a licensed title agent for Old Republic Title.

When should I hire Cutler & Associates to assist me?

If you are selling real estate, a good time to hire an attorney is right after you know that you have an accepted offer to purchase and are about to conduct a necessary inspection of the property. Whether you are buying or selling, it is important to hire an attorney before you enter into a Purchase and Sale Agreement (P&S), which is a key component in the sale of real estate. Hiring an experienced attorney at this time assures not only that the other party negotiates fairly, but also that the P&S is drafted accurately, to reflect your agreement and provide greater detail about the obligations and representations of the parties.

A Purchase and Sale Agreement prepared by an experienced attorney should clearly identify the following:

1. Parties to the Agreement

An experienced attorney will ensure that a Seller is the actual owner of the real estate, and that all names and contact information are accurate.

1. Description of the Premises

The description of the premises is a critical aspect of your P&S as it determines precisely what you are buying or selling. An experienced attorney will avoid confusion by properly drafting this description.

1. Fixtures and Personal Property

A common point of contention between buyers and sellers is whether certain items of property will be treated as “fixed” to the real estate, or as removable personal property of the seller (e.g. appliances). But often, the parties do not recognize the issue until it is too late. An experienced attorney will have the foresight to negotiate the more elusive, but equally important details of your transaction.

1. Quality of Title

Sellers must convey good, clear and marketable title to the Buyer. An experienced attorney will examine a seller’s title and when possible, resolve any potential title problems.

1. Financing Contingency

When a buyer is dependent upon financing to close a real estate transaction, it is important that the buyer negotiate for a “Financing Contingency” clause allowing the buyer to cancel the P&S without recourse if he or she is unable to obtain a specified amount of financing by a specified date. Otherwise, a buyer’s failure to deliver the purchase price will result in his or her default under the agreement and at the least, the loss of his or her deposit.

Real estate transactions are fraught with potential danger. The assistance of an experienced transaction attorney is imperative to ensure protection of the numerous interests at stake and proper allocation of responsibility between the parties. You can have peace of mind with Cutler & Associates in your corner.

What role will Cutler & Associates assume during the pre-closing, closing and post-closing processes?

1. Pre-Closing Process

Cutler & Associates coordinates the pre-closing process with all parties and their counsel. In addition to negotiating and drafting the P&S, Cutler & Associates will acquire some key documents, including a Title Exam, Plot Plan and Municipal Lien Certificate. After careful review of the these documents, and after resolving any title problems, Cutler & Associates will schedule a closing and prepare a list of final documents that each party must submit prior to closing.

1. Closing Process

Cutler & Associates wants everything to go smoothly at your real estate transaction closing, which means having the correct documents organized and ready for signing, as well as making sure the other party produces the documents required of them. During the closing, a closing attorney will explain the necessary documents in detail. The following are typical documents required of sellers and buyers at closing:

1. Seller:
   
   • Payoff Statements from the Seller’s existing mortgages state the amount owed by the Seller on the date of the closing and the so-called per diem amount representing the interest owed in the event the payoff funds are not delivered on the agreed day.
   • Releases of Attachments are important to clear title to real estate when the Seller has creditors who have secured their interest with a claim to Seller’s property.
   • Smoke Certificate and Carbon Monoxide Certificate must be signed by the local fire department and may not be older than 60 days when presented at the closing.
   • Deed should be prepared and executed by Seller, and proofread by the closing attorney prior to closing.
2. Buyer:
   
   • Homeowner’s insurance binder must correctly state the Buyers name, Lender’s mortgagee clause, property address, insured amount and the agent’s signature. This document must be sent to the Lender for final approval prior to closing.
   • Funds for Closingmust be in the form of a cashier’s check or other form of certified funds. The amount is stated on the settlement statement/HUD.
3. Post-Closing Process

Once all the documents are signed, Cutler & Associates will prepare a package for recording at the county Registry of Deeds. A post-closing package will include recordable documents such as Mortgages, Deeds and Municipal Lien Certificates. Cutler & Associates will send a recording expert, usually the same day as the closing, to to record these documents at the proper Registry. Once Cutler & Associates obtains recording information from the registry, funds can be dispersed to pay off the Seller’s prior mortgage. After disbursement, Cutler & Associates will work to finalize the closing process, in part, by obtaining proper discharges for the Seller’s prior mortgages.