Real estate attorney question (sale, 2015, credit)

[m378]

We're in the process of purchasing a home, and the process is a little different down here than what we're used to. In previous lives, we presented an offer, agreed/signed the offer, went through an inspection/due diligence, and then a purchase & sale agreement was written up. We would usually have our own real estate attorney take a look at the purchase & sale prior to signing, and the respective attorneys would go back and forth to work out the final agreement. The lenders attorney, or your personal attorney, would do the closing.

Here in NC, the offer/contract is all one form, which we've already signed. New regulations apparently require that you use the lenders attorney for closing. Is there any other point in the process where I may need to include our own real estate attorney? Or is this not something that's generally done around here?

Thanks in advance.

[VickiR]

With new construction, builders like for you to use their attorney and will sometimes pay those attorney fees.

I've never had a lender tell any of my clients they HAD to use their attorney for closing.

Are they giving you an incentive for that?

Usually, my buyers choose their own attorney for closing or go with one I recommend.

As you have noticed, our forms are all "fill in the blank". They are prepared by the NC Bar Association so having an attorney look over the paperwork is somewhat redundant. In 14 years of being in RE, I've had one buyer do that. If it makes you feel better, do it. However, it isn't necessary.

Even if you do use the lender's suggested attorney or the builder's attorney, they must still operate under the NC Bar Association rules, which means they can't do anything illegal to you!!!

[m378]

Originally Posted by VickiR

With new construction, builders like for you to use their attorney and will sometimes pay those attorney fees.

I've never had a lender tell any of my clients they HAD to use their attorney for closing.

Are they giving you an incentive for that?

Usually, my buyers choose their own attorney for closing or go with one I recommend.

As you have noticed, our forms are all "fill in the blank". They are prepared by the NC Bar Association so having an attorney look over the paperwork is somewhat redundant. In 14 years of being in RE, I've had one buyer do that. If it makes you feel better, do it. However, it isn't necessary.

Even if you do use the lender's suggested attorney or the builder's attorney, they must still operate under the NC Bar Association rules, which means they can't do anything illegal to you!!!

I was told with the new regulations (TRID?) that we were required to use the lender's attorney. I know a lot of stuff changed on Oct 3.

Thanks for the additional info!

[m378]

Reading this:

Four Major TRID Decisions Lenders Will Have to Make | North Shore Consumer Credit Association

It sounds like it will vary by lender on whether you can choose your own attorney, depending on how much risk the lender is willing to take on.

[MikeJaquish]

Originally Posted by m378

Reading this:

Four Major TRID Decisions Lenders Will Have to Make | North Shore Consumer Credit Association

It sounds like it will vary by lender on whether you can choose your own attorney, depending on how much risk the lender is willing to take on.

Attorney may have to qualify with the lender, as the lender is going to do work that the attorney used to do, but I don't think of any attorney as the lender's attorney.
I think I would dig in on that, and suggest that you be sure the attorney is working for you.

[m378]

Originally Posted by MikeJaquish

Attorney may have to qualify with the lender, as the lender is going to do work that the attorney used to do, but I don't think of any attorney as the lender's attorney.
I think I would dig in on that, and suggest that you be sure the attorney is working for you.

I never considered a lender assigned attorney to be working for me - I always been under the impression they were looking out for the lender's best interest. That being said, I've used lender-assigned attorneys in the past for closings - I figure as far as closing/title issues are concerned, the lenders best interest is also my best interest. Maybe that's naive.

I've always used my own attorney just to look over the final contracts just for peace of mind, but it doesn't sound like it's as relevant here in NC.

[MikeJaquish]

Originally Posted by m378

I never considered a lender assigned attorney to be working for me - I always been under the impression they were looking out for the lender's best interest. That being said, I've used lender-assigned attorneys in the past for closings - I figure as far as closing/title issues are concerned, the lenders best interest is also my best interest. Maybe that's naive.

I've always used my own attorney just to look over the final contracts just for peace of mind, but it doesn't sound like it's as relevant here in NC.

In NC, when a buyer selects their closing attorney, they put the attorney in a fiduciary role.
When you are accepting title and debt, along with dealing with other variables, I think hiring at a fiduciary level is smart.
It's probably a mere technicality, but it's not a bad position to have the attorney owe you as much or more than they owe the lender. Particularly when you have a choice and the cost is the same for either situation.