Real Estate Closings: What Happens?

What Happens in a Real Estate Closing?

Buying property can be an exciting process.  You look at properties, find one you love, and make an offer.  When the sellers accept that offer, you will need to close on the property.  For many buyers, the closing is a mystifying process.  This article will explain what to expect at a Real Estate Closing.

The Closing Process

Closing is often called "settlement."  These two terms are used interchangeably, so a Real Estate Closing and a Real Estate Settlement are the same thing.  In a nutshell, this is when all documents are signed, monies are exchanged, and the property transfers to the buyer.  The period between acceptance of an offer and closing is often called "the escrow period."

What Happens During Closing?

All parties involved meet in a mutually agreed upon location to review and sign all of the documents. Since most of these documents are prepared in advance of the Settlement Meeting, you should have already thoroughly reviewed them with your attorney.  If there is a mortgage involved, these documents are reviewed, signed, and notarized during this meeting, and the monies are disbursed to the seller.  The buyer also pays his share, including closing costs, via certified check.  Often, the buyer is also required to set up an escrow account to cover things like taxes, insurance, and the first few mortgage payments.  The buyer will need a separate certified check for this.  In addition, closing costs (usually 3-5% of the financed amount) are paid with a third certified check.  The Real Estate Agents also receive their commissions during the closing conference.

Who is at a Settlement?

Whether you are the buyer or the seller, hopefully you've followed our advice and retained an attorney to help you with the whole process.  Your attorney should have reviewed ALL contracts and documents, as well as helped you with all negotiations.  Your attorney should also be there for the closing.  In addition to buyer's and seller's attorneys, you can expect both the real estate agents (both the Buyer's and Seller's agents,) a representative from the financing agency (usually a bank,) and a representative from a title company.  You will also need a Notary Public to notarize all the documents.  Often, one of the Real Estate Agents, Bank Representatives, Lawyers, or Title Company representatives is a Notary.  Connecticut, Georgia, and Delaware all require an attorney to execute the closing, so if you live in one of those states, settlement definitely includes at least one lawyer.

Where Does the Closing Take Place?

A closing may take place in a number of places, be that an Attorney's Office, a Title Company, an Escrow Company, or the Lender's Office.  If it is a "cash" transaction with no mortgage, settlement usually occurs at the Attorney's office, either yours or that of the seller.

When Does the Closing Occur?

The closing takes place at a date and time mutually agreed upon by all parties.  Generally, there is approximately a month between acceptance of offer and the settlement meeting.  

How Long Does the Process Take?

Generally, the Closing takes between 30 and 90 minutes, depending on how prepared all parties are, and how long it takes to review the documents.  However, if issues arise during the closing, it may need to be rescheduled, and it may take several days.  

What Documents Need to be Executed?

Usually, the closing involves signing the following documents:

• The Closing Disclosure Form: This is an itemized list of the buyer's final costs, credits, and charges;
  
• Deed of Trust or Mortgage Document: These are the actual terms and conditions of the financing agreement;
  
• Promissory Note:  This is the actual IOU form to the lender, detailing the actual amount of money you are borrowing and will need to pay back;
  
• Loan Estimate: This document outlines the actual closing costs, which are in addition to financing and down-payment;
  
• Title Insurance: protects an owner's or a lender's financial interest in real property against loss due to title defects, liens or other matters.
  

What Happens After Closing?

You take possession of the property, and the new deed is recorded.  You also receive your keys at this meeting.

What Issues May Arise During Closing?

Hopefully, the closing will go smoothly, and there will be no issues.  Ideally, both parties have all the documents ahead of time, and have had a chance to review them, so that issues do not prevent a smooth closing.  However, the following issues may delay or prevent a settlement:

• Errors in the Documents: These can be as simple as typos, or there may be terms that were not previously agreed upon.This is why it is important to thoroughly re-read ALL documents before signing them.  DO NOT sign any documents containing errors until those errors are corrected.
  
• Money Issues: Often, funds are delayed, especially if the purchase involves a mortgage.  If checks are delayed, settlement may need to be postponed.
  
• Title Issues: Sometimes title issues are found that must be cleared before final settlement may occur.  These may be unknown liens placed by contractors or an Association, unpaid Association fees, tax deeds, etc.  Despite the presence of Title Insurance, the Buyer's Attorney will not allow settlement to commence if any title issues are found.
  
• Issues Found During the Final Walk-Through or Inspection: Many contracts are contingent on a Home Inspection.  If the Inspector finds any issues, the Buyer's Attorney may negotiate buyer credits to fix these deficiencies.  Likewise, if any issues were found during a final walk-through, such as damages to the home, paint defects caused during a moving out process, non-working fixtures or appliances, or cleanliness issues, the attorneys may negotiate repairs or credits, or even a reduction in the final cost of the property.

If any of these issues arise, the closing may be delayed or continued on another day.  Sometimes, these issues may prevent a closing from happening at all.  The contract may fall through if significant issues crop up.  Again, these issues are best handled by an attorney, whether you are the buyer or the seller.  

Often, "Earnest Money," or a deposit is made when the offer is accepted.  If the closing falls through, what happens to this money is dependent on several factors, including the wording in the sales contract and the reasons for the closing falling through.  Again, it is best to let your attorney handle these negotiations.  Whether you are the buyer or the seller, it may cost you a lot of money if you try to handle these negotiations yourself, or if you leave them to your Real Estate Agent.  It will most likely cost you far more than you would have paid in Attorney's Fees.

Summary

This article attempted to demystify the closing process.  It outlined the who, what, when, where, and hows of the  settlement process.  It also stresses the importance of retaining a skilled Real Estate Attorney to represent you at settlement.  There are a plethora of complicated documents to sign, and even more issues that may arise, all of which are best  handled and negotiated by your lawyer.

The Law Offices of Heath D Harte are located in Connecticut, a state which requires an attorney to be involved in the closing process.  Again, we stress you hire your OWN attorney, rather than depending on the Real Estate firm to provide one.  Only your own attorney has your best interests at heart, (or should we say at Harte, as we always have our clients' best interests at the forefront.)  There are just too many issues that may crop up during the settlement process that can cost you far more than paying attorney fees.  With the proper preparation, we can even represent you at the closing so that you do not even have to be present.  If you live in one of the areas in which we practice, we are happy to represent you throughout the entire home buying process, from identifying property to buy, to placing an offer, to reviewing and negotiating documents, to handling the closing for you.  We can take most of the stress out of the home buying process.

The Top 10 Biggest Mistakes In Injury Claims

Common Mistakes in Personal Injury Cases?

Not calling the police: 

If you do not call the police, there is no formal investigation of the accident. This applies especially to car accident claims. If the negligent party or driver denies liability later on, you may have a difficult time proving your case. By calling the police, an officer will interview all involved parties and witnesses, record their contact information, and write a ticket to the party at fault in car accident cases. 

Not getting witness contact information: 

Injury victims often fail to obtain the contact information of witnesses at the scene of the accident. If the witnesses choose to stay and speak to police, this is not a problem; however, witnesses often only stop long enough to make sure everyone is okay and then leave before the police arrive. The scene of the accident may be your only opportunity to get the contact information for any witnesses. Without this information, an insurance adjuster may deny liability and refuse to pay anything to you as an unrepresented injury claimant. 

Not fixing the property damage: 

Accepting and cashing a property damage check without first fixing the damages is another common mistake. The amount offered may end up being less than the amount it takes to fix the damage. Additionally, adjusters often send a check for less than the actual cost of the repairs and hope that you will decide not to repair the property. They can then argue that you were not really hurt and pay you little or nothing for your personal injury claim. 

Giving recorded statements without hiring an attorney: 

Allowing an adjuster to take a recorded statement without the protection and guidance of legal representation can result in serious problems. An adjuster can easily misconstrue your answers in a way that makes it appear as though you were not really hurt in the accident, or that you were partly or wholly liable for its cause. An adjustor's job is to save the insurance company money and he or she will do anything he or she can to do so. 

Signing releases: 

Injured accident victims often sign releases for property damage, only to find out that it was actually a general release that settles any and all claims. After signing such a release, a personal injury claim is no longer possible. Do not sign anything without consulting an excellent injury lawyer. 

Trying to negotiate your claim without a lawyer: 

It may not be a requirement to be represented in a personal injury claim, but that does not make it any less necessary. Insurance adjusters often set the reserves (the value of the case) much lower when a victim is not represented. Verbal settlements are enforceable in Connecticut and New York, and self-represented injury claimants often "settle" their claims verbally on accident, without really intending to settle it. Hiring an experienced personal injury lawyer can prevent this. 

Not using Med Pay: 

Med Pay is health insurance coverage for anyone in your car who is hurt in a car accident, or for you if you were hurt while a passenger is someone else's car. This insurance pays for your medical treatment with any doctor without co-pays or deductible. The amount of your coverage depends on how much you purchased in your policy. 

Not using health insurance: 

This is a mistake since many hospitals and doctors require payment soon after medical treatment is provided. If you do not pay it, the bill is often turned over to collections. Using health insurance, you will pay for your treatment as you go. This can greatly increase the total amount you will net out of your personal injury settlement. Good personal injury attorneys can often negotiate away or negotiate huge reductions in any health insurance subrogation claims. 

Not using uninsured motorist coverage: 

Uninsured Motorist (UM) coverage and Underinsured Motorist (UIM) coverage protect individuals who are hit by motorists with little to no insurance of their own. Any remaining balance after the liable party's insurance runs out will then be covered by your own insurance. Normally, your rates do not rise when you use UM or UIM coverage. You must have this coverage under your insurance policy, however, in order to obtain coverage for your damages. 

Not getting medical treatment: 

Just because you do not have health insurance does not mean that you shouldn't get medical treatment. If you do not get treated, an insurance adjuster may argue that you were not really injured and deny you coverage. Good personal injury attorneys can get you to doctors who treat on a lien. They can also get you pain management and surgeries using medical funding companies. It is also important to avoid long gaps in treatment, once more to prevent adjusters from claiming that your injuries are nonexistent or less severe than they truly are. 

Other mistakes:

Not consulting with a Lawyer:

One of the biggest mistakes you can make is trying to handle a personal injury claim on your own.  Most likely, your award will be far less than you deserve. This applies in ALL injury cases, including auto accidents, negligence claims, slip and falls, etc.   You may miss an important mistake in the claims process and end up not getting anything at all.  A skilled attorney can ease the process, lessen your stress, and maximize your awards.

Not filing in a timely manner.  

Injury claims have strict statutes of limitations.  You MUST ensure your claim is filed within the 2 year period allotted.  If you do not file EVERYTHING in a timely manner, your claim will be denied.

Consult With A Personal Injury Attorney Near You

A good attorney wants to help you win a full recovery of your personal injury damages. However, any lawyer can more easily fight for you if you do not make these mistakes when the incident occurs. An attorney can still help you, even if you have made some of these mistakes, but it is likely that any award may be smaller.  It is best to be proactive and learn not to make these mistakes before you are injured.

Of course, here at the Law Offices of Heath D. Harte, we have decades of experience.  We will skillfully assist you in avoiding these common mistakes. And we will help mitigate the damages caused if you have made any of these mistakes. We treat each client as part of the family and will support and guide you through each step of your injury claim.  

If you are in the New York or Connecticut area, we can help you with your injury claim.  Contact us now to schedule your free consultation and speak with a lawyer. You only have two years to file a personal injury claim under the statute of limitations, so contact our firm right away!

Child Custody: Does it Mean Litigation?

Child Custody: Does it Mean Litigation?

When the word “custody” is mentioned, people picture a projected legal battle.  They picture long days in court, full of airing one's dirty laundry in public.  Custody issues can get messy, but they don't necessarily mean long days before a judge.  Today, most custody issues are hammered out in negotiations.  This is true for both married parents and non-married parents alike.

The first step in gaining custody is to ask for it.  If the parents are married, that step is a part of divorce proceedings.  If the parents are not married, the father may have to file to establish paternity.  This may involve a Court Order, but it does not have to.  In most cases, establishing paternity is mediated through the lawyers.  If the mother is married to someone else, things get a little more difficult.  In most States, if a woman is married, her spouse is legally presumed to be the Father.  Because of adultery laws are still on the books in many states, many women will fight having a man she is not married to being declared the father.  That does not mean the fight for father's rights is automatically lost.  However, there is a greater likelihood of needing court intervention to order a paternity test.

Over the years, mothers have been more likely to ask for primary custody, but that too is changing.  Today, custody is being awarded to the father in more and more cases, regardless of whether the parents were married at the time the child was conceived.  Men are fighting their Baby Mamas for custody and are winning.  In fact, the courts are looking at things like financial and emotional stability over sex of the parent.
Ideally, the lawyers battle in their offices so that the issues are settled before things ever reach the courts.  Family Court should be a LAST resort, only after discussions between the parents have failed.  In fact, the great custody myth is that the majority of cases are battled out in Family Court.  That is not the case.

According to DivorcePeers.com () most custody is decided through negotiations:

• 51% agreed on their own
• 29% settled without third party involvement
• 11% decided during mediation
• 5% resolved differences after a custody evaluation
• 4% went to trial (of the 4% that initiated litigation, only 1.5% actually completed it)

So what is the likelihood YOUR custody battle will involve litigation?  How able are you to communicate with your co-parent?  Do both parents want sole custody, or do they want co-parenting?  Does the other parent have issues that could potentially endanger your child?  Will the parents reside near one another, or will they be separated by distance?  How reasonable is your co-parent?  Even if the two of you cannot communicate, can you do so through third-parties?

The fewer of these issues that apply to you, the less likely you will need a court to decide them.  If custody is fairly straightforward, the courts will not be involved at all.  And if you can work the issues out between your attorneys, you will not need to litigate.

This is where finding the right attorney can be key.  Your lawyer needs to understand all of the issues, as well as your desires.  S/he needs to be skilled at looking at ALL the problem areas and advising you accordingly.  S/he needs to be able to help you get past your stubbornness and anger.  S/he needs to help you stand strong on the big points and compromise on others.

Of course, any time there are unacknowledged endangerment issues, the likelihood of court involvement is greater.  The more severe these issues, the greater chance the offender will concede before you get to court.  The goal is to work everything out, so that you just present an agreement for the court to ratify.  And the more reasonable you are throughout the settlement process, the greater the chance you will prevail on the issues that need court intervention to settle.  And if you have trouble being reasonable, make sure your attorney can be for you.

So does custody necessarily mean a huge court fight?  The answer is no, it does not.  Most of the battle is fought in the lawyer's offices.  But the first step is telling your attorney to fight.  The second step is being willing and able to compromise along the way.  The goal is actually to keep the fight OUT of the courtroom. 

Here at the Law Offices of Heath Harte, we believe in negotiating custody, as much as possible, outside of the courts.  We will help you look objectively at the issues surrounding your case, both good and bad.  We will explain all of the factors used in determining custody, and just how these factors apply to your case.  We will look at all of the financial and emotional issues.  We will truthfully examine the barriers facing you along the way.  We will help you determine what is realistic, and what is truly best for the children involved.  We will help you prepare your strongest argument.  We will negotiate as much as possible without litigation.  If we do need the court's involvement, we'll use our knowledge of case law and judge's behavior to advise you where you should bend, and where you should stand strong.  We believe that parents, with all their strengths and weaknesses, are the best ones to determine what is best for their children.  We believe in keeping the decisions with the parents and out of the courts.

Fighting for Paternal Rights

Fighting for Paternal Rights

Today, the “traditional family” is becoming a rarity.  Today, the single-parent home, the blended family, and shared custody are at least as prevalent as traditional families.  We also have same-sex couples bearing or adopting children.  In the old days, when a family broke up, primary custody almost always went to the mother.  Today, that is no longer the case. 

Many fathers still assume that if they leave their spouses, that means the end of raising their children. Unmarried fathers assume they have no chance for primary custody.  Thankfully, that is no longer the case.  More and more fathers are fighting for primary, or even sole custody and are winning.

The advances, in part, are due to The Fathers' Rights Movement. Starting in the 70s, groups of men began organizing to end the bias towards placing children with Mom.  Groups began to form, including Families Need Fathers and the Lone Father Association.   (See http://en.wikipedia.org/wiki/Fathers%27_rights_movement.)  The movement continued and expanded with the rise of the Internet.  Now, there are a plethora of groups organizing through social media sites like Twitter, Facebook, and Reddit.   Some of these groups advocate and lobby, while others offer support.  They also help raise awareness of why the mother may not be the best parent for the children.  Similar groups exist that stress the importance of shared parenting. These groups have helped things like paternity leave for fathers to become a reality.

Several celebrities have also helped raise the profile of fathers' rights.  In 2014, the actor Jason Patric was denied visitation and was barred from seeing his baby, conceived through IVF. After initially being denied even visitation, he sued, and won, and was granted full parental rights.  

Also in 2014, skier Bode Williams was casually dating a woman who became pregnant.  She decided to move to New York to go to college.  Bode successfully sued for father's rights, gaining primary custody of his baby.   Halle Berry and Gabriel Aubry dominated the tabloids in 2012, 2013, and 2014, with Halle fighting to deny visitation, and Gabriel fighting, and winning his parental rights.  Aubry successfully kept Berry and her new husband from moving their child out of the country.  This year, NFL Hall of Famer Barry Sanders joined the ranks of those fighting for Fathers' Rights.

Today, there is no reason for a loving father to back down.  You do not have to be a celebrity to successfully gain custody of your child.  All you need is will, determination, and the right lawyer.

Here at the Law Offices of Heath Harte, we believe custody needs to go to the better parent.  In many cases, that is the father.  We also believe that most children can benefit from having a relationship with both parents.  If you are a father, and you are looking at establishing your paternal rights, we can help.