North Carolina laws help prospective buyers to secure their interests when purchasing a home. According to these laws, an attorney must oversee these transactions to ensure that the sale is legitimate. The first step for the Real Estate Lawyer in Cornelius NC is to conduct a title search for the property.
Why a Title Search is Required
The title search enables the attorney to determine if the seller has the legal right to offer the property on the market. Typically, these searches include the last twenty years of title transfers. The attorney provides title insurance for the buyer. The insurance helps them to secure any earnest money or down payment provided to the seller. If the title search finds that the seller isn’t the rightful owner, the buyer could acquire a refund of these funds through an insurance claim.
Protecting Against Predatory Lending Practices
With changes in lending laws, an attorney reviews the terms of the mortgage loan to determine if predatory lending practices are present. According to the law, the lender must determine affordability through the borrower’s income-to-debt ratio. The attorney must determine if the payment could lead the buyer to foreclosure in the future. The terms cannot impose any unethical fees upon the borrower that could cause foreclosure. The lender cannot offer a higher interest rate when the buyer qualifies for or if a lower rate is available.
Reviewing All Documents
The Real Estate Lawyer in Cornelius NC reviews the documentation at the closing to determine all prerequisites are met. This includes the acquisition of homeowner’s insurance by the buyer. They review the method of wire transfer to ensure that they are compliant with North Carolina laws.
Home buyers have the opportunity to hire their own attorney for a real estate transaction. However, an attorney must administer this process to ensure all checklist items are fulfilled on both sides. The attorney produces a new title for the buyer and ensures that the names on it read as directed by the buyer. They also ensure that the seller acquires the funds from the sale appropriately. Browse our website to learn more about the role of the real estate attorney and why hiring your own is beneficial.
