Are you considering a diy real estate closing? Have you thought of trying to avoid hiring an attorney or other professional for a real estate closing? It can be common for consumers to want to handle transactions like this on their own without consulting a professional. The internet makes it seem like a tempting possibility and tries to provide some helpful information, but it could also be a dangerous ground for misinformation, especially to untrained eyes. While it can be a good idea to save on costs in some instances, purchasing real estate is not one to save costs and DIY.
Although many states strongly encourage the use of attorneys and escrow services in real estate transactions, some people choose to handle the complex transactions privately. The problem can be, however, that most people, who are not trained to handle these transactions, could easily miss issues that could cause lots of headaches or even threaten the entire deal.
Several common mistakes with DIY real estate closings include:
- Forgery and fraud
- Any unsatisfied encumbrance
- Probate and title issues
- Latent errors on the deed.
Any real estate transaction must be in writing to be enforceable. When an attorney or escrow officer handles the transaction, he or she must examine the chain of documents in public records to look for a host of issues that may impact the validity of the transaction. This step can safeguard the parties from forged, altered, and fraudulent documents. Similarly, a title search can produce any “cloud on the title” and reveal any unsatisfied encumbrance. This could be a tax lien, an unpaid mortgage, a mechanic’s lien, or any other security interest placed on the real property. Title insurance will provide this service to insure a clear title to transfer.
If the real property is part of a deceased’s estate, there could be issues with heirs who inherited it or co-owners with a claim to the property by operation of law. It may also simply be a case where multiple heirs have different plans for the disposition of the real property. Such a dispute could tangle up the transaction in court for years.
Last, the deed could have a faulty legal description that could be easily cured. Average purchasers, however, could easily miss such details without an expert’s assistance and be exposed to legal disputes later.
Avoid the pitfalls of a DIY real estate closing. Our office is here to help. Together, we have over 40 years of trusted experience. Right here in Florida, and nationwide. Contact us on our website or by calling us at 850-386-2171 today.