14 Reasons a Buyer Should Hire an Attorney
Buyers certainly are not required to have an attorney in the event of a purchase in the state of Illinois. Here are some reasons why paying for an attorney’s services makes sense:
1. Attorneys are experienced and familiar with contract terms and their variations and can recommend appropriate modifications. They can spot items that may be to the detriment of client, such as hidden fees or fees that should be paid or provided by seller but instead are incurred by buyer.
2. They investigate taxes and exemptions and determine the appropriate tax exemptions and credits. They ensure that items that should be provided by seller are provided by seller.
3. They make sure that all contingencies to contract and their deadlines, such mortgage contingency period, are kept open so any issues that would result in the inability to purchase would allow for earnest money to be refunded rather than it being kept by seller due to buyer’s breach.
4. They are familiar with closing costs and fees which result in savings to buyer. For example, in cash transactions, they always request that title closing fees shall be split between buyer and seller and/or title update fees shall be paid by seller.
5. They encourage inspection of the property and negotiate credits for repairs which in most cases always result in additional credits to buyer.
6. If any issues arise through walk-through, or violations discovered, issues/encumbrances with title, they make sure they are either fixed or additional credits are given pursuant to the contract, citing the requirement of the property being in substantially the same condition. (Attorneys can be much more persuasive here and can negotiate for the benefit of buyer or even get you out of the contract entirely)
7. They review the title commitment and ensure that clear title is being conveyed. They also make sure that appropriate endorsements are given and the title policy provides extended coverage.
8. In the case of condominiums, they review all condominium documents, including budget, reserves, etc. to ensure that buyer is buying a property in a sound building with the ability for resale. This is extremely important as a buyer wants to make sure they are buying an appreciating asset.
9. They review all sellers’ documents, such as the deed to ensure that property is being appropriately conveyed.
10. They review buyer’s loan documents and make sure they understand their loan terms.
11. They review the HUD/settlement statement and to make sure all credits/disbursements are correct.
12. They are needed when a problem is discovered such as a disclosure that should have been made by seller but was not, or misrepresentations by seller which result in damage to buyer’s property.
13. They ensure a smooth transaction and effective communication and in most cases this results in a quicker close. Buyers with no attorney usually get nowhere with a seller’s attorney as far as any negotiation is concerned.
14. Overall, getting attorneys involved reduces buyer risk when purchasing a property.
In the end, it is up to the buyer!
Avni B. Shah, Esq.
Bell Law, LLC