5 Things a Real Estate Closing Attorney Does in North Carolina and South Carolina.

A real estate closing involves a lot of moving parts. Between contracts, lender documents, title work, payoff statements, deeds, signatures, funds, and deadlines, there is quite a bit happening behind the scenes before a property officially changes hands.

In both North Carolina and South Carolina, a real estate attorney plays an important role in the closing process. While every transaction is different, the closing attorney generally works to make sure the necessary documents are prepared, title to the property is properly reviewed, closing funds are handled appropriately, and any issues that could affect the transfer of ownership are identified and addressed.

For buyers and sellers, much of this work happens in the background. Understanding what the closing attorney actually does can make the process a little less confusing and help you know what to expect as your closing date approaches.

1. Reviews the Contract and Transaction Details

Once a property is under contract, the closing attorney and their staff review the purchase agreement and the information provided by the parties. This includes details such as the purchase price, buyer and seller names, property address, closing date, financing, agreed-upon closing costs, and any special terms that could affect the closing.

The contract essentially provides the roadmap for the transaction. For example, the seller may have an existing mortgage that must be paid off, certain costs may be allocated between the buyer and seller, or the parties may have agreed to specific conditions that must be satisfied before closing.

The closing office also gathers information from the buyer, seller, real estate agents, lender, and other parties involved in the transaction. Even seemingly minor details matter. An incorrect name, missing document, or payoff that has not been received can cause delays as the closing date approaches.

2. Examines the Property's Title

Before a property can be transferred to a new owner, the property's title must be examined. Title refers to legal ownership of the property and the rights and interests associated with that ownership.

A title search involves reviewing the public records associated with the property and its ownership history. The purpose is not only to confirm that the seller owns the property, but also to identify liens, claims, defects, or other matters that could affect the buyer's ownership.

Some of the issues that can come up during a title search include:

• Existing mortgages that need to be paid off at closing

• Older mortgages that were paid but were never properly released in the public record

• Judgments or liens against the property owner

• Unpaid property taxes or tax liens

• Errors or inconsistencies in prior deeds

• Estate or probate issues involving a deceased owner

• Easements, restrictions, or other recorded matters affecting the property

• Missing signatures or other problems with a prior transfer

  
  

Finding a title issue does not necessarily mean the closing cannot move forward. Many title issues can be resolved before closing. The important part is identifying the problem, determining what is necessary to address it, and getting it resolved before it causes a last-minute delay.

3. Coordinates the People, Documents, and Deadlines

There are usually a lot more people involved in a real estate closing than just the buyer and seller. The closing attorney and their team may communicate with real estate agents, lenders, mortgage companies, homeowners associations, surveyors, title insurance companies, and other parties throughout the transaction.

A large part of the closing process is making sure the information and documents needed from each of those parties are received on time. If the seller has a mortgage, a payoff statement must be obtained. If the property is subject to an HOA, information about outstanding dues or other amounts may need to be requested. If the buyer is financing the purchase, the closing office will also work with the lender to coordinate loan documents, final figures, and funding.

Many of these details are handled behind the scenes. In the days and weeks leading up to closing, the closing team is reviewing the file, following up on outstanding items, updating figures, and addressing issues so that everything is ready when it is time for the parties to sign.

4. Prepares the Deed and Final Closing Figures

Another important part of the process is preparing the documents necessary to complete the transaction. One of the most important is the deed, which is the legal document used to transfer ownership of the property from the seller to the buyer.

The deed must correctly identify the parties and the property being transferred and must meet the legal requirements for execution and recording. Depending on the transaction, there may also be other legal documents that need to be prepared or reviewed before closing.

The closing team also works to finalize the financial side of the transaction. This includes accounting for the purchase price, earnest money or other deposits, lender funds, taxes, real estate commissions, mortgage payoffs, recording fees, and other closing costs.

For financed purchases, the closing office works with the buyer's lender to coordinate the final figures and loan documents. The buyer will generally receive a Closing Disclosure showing the terms of the loan and the costs associated with the transaction.

If the seller has an existing mortgage or another lien that must be satisfied, the appropriate payoff amount must also be obtained and accounted for at closing. These amounts are typically paid from the seller's proceeds so that the lien can be satisfied as part of completing the transaction.

5. Oversees Signing, Recording, and Disbursement

The signing appointment is the part of the closing process that buyers and sellers are most likely to see. Depending on the transaction, the buyer and seller may sign at the closing attorney's office, remotely with a notary, or through another arrangement coordinated before closing.

However, signing the documents does not necessarily mean the transaction is complete. Before the closing attorney can finalize the transaction, all closing requirements must be satisfied. For a financed purchase, this can include receiving the lender's funds and authorization to proceed. The closing office must also have the properly executed documents and any other funds or information required to complete the transaction.

Once everything is in place, the deed and any other documents that need to become part of the public record are submitted for recording in the county where the property is located. The deed documents the transfer of ownership to the buyer, while a new mortgage or deed of trust may also be recorded when the purchase is financed.

After the requirements for closing and disbursement have been satisfied, the closing attorney can distribute the funds. This may include paying the seller's proceeds, satisfying existing mortgages and liens, paying real estate commissions, and making any other payments required by the transaction.

This is why finishing the signing appointment does not always mean the closing is officially complete. There are still important steps taking place behind the scenes before the transaction is finished.

Questions About a Closing in North Carolina or South Carolina?

Every real estate transaction is different, but knowing what to expect can make the closing process much easier to navigate. The closing attorney's role extends well beyond the signing appointment. From reviewing the transaction and examining title to preparing documents, coordinating with the parties, handling closing funds, and recording the necessary documents, much of the work happens before and after everyone sits down to sign.

The Cloud Law Firm, LLC handles real estate closings throughout North Carolina and South Carolina. Whether you are buying, selling, investing, or assisting a client with an upcoming transaction, our office is available to answer questions and help guide the transaction from contract to closing.

Disclaimer: This article is provided for general informational purposes only and is not intended to constitute legal advice. Reading this article does not create an attorney-client relationship. The requirements of any real estate transaction will depend on its specific facts and applicable law.