The Role of an Attorney in Real Estate Closings

October 10, 2024
Savage, Royall & Sheheen

In South Carolina, having an attorney involved in the real estate closing process is a legal requirement. State laws demand that an attorney be present during the closing to oversee the transfer of property, ensuring that the process adheres to all legal standards.

Real estate closings involve more than just signing a few papers and handing over the keys.

Behind the scenes, there are several critical steps—everything from conducting a title search to ensuring the funds are properly distributed.

So, what does a closing attorney do? A closing attorney makes sure these tasks are completed correctly and acts as a neutral party, assuring that both the buyer’s and seller’s interests are protected. In a transaction with so much at stake, having an attorney who understands the local real estate laws can make all the difference.

What Is a Real Estate Closing Attorney?

A real estate closing attorney is a lawyer who specializes in the legal aspects of property transactions. In South Carolina, an attorney is required to be involved in the closing process.

The attorney ensures that the transfer of property from the seller to the buyer is lawful, all required documents are properly prepared and signed, and the funds are disbursed correctly.

What Does a Closing Attorney Do?

A real estate closing lawyer carefully reviews a purchase agreement—a document that outlines the terms of the sale— to confirm that the terms are fair, reasonable, and legally binding. They also check for any potential legal issues that could complicate the closing process, ensuring the buyer’s and seller’s rights are fully protected.

Before finalizing a sale, the lawyer conducts a thorough title search to verify that there are no existing liens, claims, or encumbrances on the property that could impede the transfer of ownership.

The closing process involves multiple legal documents that both parties must sign, including deeds, loan agreements, and settlement statements. A real estate lawyer prepares and reviews these documents, ensuring they are legally binding and accurate, and that all required information is in place.

A real estate lawyer is also often present during the closing to address any last-minute legal questions and to oversee the signing of all the necessary paperwork. Their presence helps ensure that the closing is conducted in full compliance with legal standards, providing peace of mind to both the buyer and seller.

Finally, the lawyer manages the disbursement of funds, making sure that all involved parties—including the seller, real estate agents, and lenders—receive their payments as agreed.

The Closing Process Explained

While every real estate closing is unique, the process generally follows a set of standard steps:

     1. Title Search: After a purchase agreement is signed, the attorney will perform a title search to ensure the property is free from legal encumbrances.

     2. Document Preparation: The attorney prepares and reviews all legal documents required for the closing, including the deed and loan documents.

     3. Review of Loan and Financing Terms: If you’re securing a mortgage, the closing attorney will carefully review the loan documents, ensuring all terms are accurate and in your best interest.

     4. Title Insurance: The attorney will also ensure that title insurance is in place. This protects the buyer and lender from potential losses due to title defects that weren’t discovered during the title search.

     5. Escrow and Final Walkthrough: Before the closing meeting, the buyer typically conducts a final walkthrough of the property. The attorney ensures that the escrow funds are properly managed and that any adjustments are made, such as prorating tax or utility payments.

     6. Closing Day: On the day of closing, the attorney facilitates the meeting between the buyer, seller, and any other necessary parties (such as the lender). They ensure that all documents are signed, funds are properly distributed, and the property ownership is transferred according to the law.

     7. Recording the Transaction: After the closing, the attorney records the deed and mortgage with the county to officially transfer ownership and provide public notice of the new ownership.

Why You Should Hire a South Carolina Real Estate Attorney

Here are several reasons to hire a South Carolina real estate attorney:

     1. Expert Knowledge of State Laws

South Carolina has specific regulations governing real estate transactions, and the local attorney is well-versed in these laws. At Savage, Royall & Sheheen, LLP, we understand the nuances of the South Carolina real estate market, ensuring compliance with all state-specific requirements.

     2. Legal Complexities in Real Estate Transactions

Real estate transactions are often accompanied by intricate legal processes, such as:

  • Title searches
  • Contract evaluations
  • Negotiations
  • Document preparation

Without proper legal expertise, navigating these processes can lead to errors and disputes. An experienced attorney provides essential guidance throughout the entire process, ensuring compliance with legal standards and safeguarding the buyer’s interests.

     3. Protecting Your Interests

When you’re the buyer or the seller, a real estate transaction involves numerous legal and financial risks. A closing attorney protects your interests, ensuring that your rights are protected throughout the process.

     4. Document Preparation and Review

Preparing and reviewing legal documents is a crucial aspect of real estate transactions. A closing attorney assists buyers in drafting and reviewing contracts, making sure all terms serve their best interests. With careful attention to detail, the attorney ensures that the contract is fair, precise, and legally enforceable.

Contact a South Carolina Real Estate Attorney Now

Real estate closings are complex transactions that require legal oversight to ensure everything is handled correctly. At Savage, Royall & Sheheen, LLP, our real estate attorneys help clients navigate this process.

While we are proud to be a small-town firm, our attorneys possess the resources and experience to handle even the most complex real estate cases.

So, if you’re buying or selling property in South Carolina, contact us on 803-432-4391 to request a consultation.

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