Remember, no matter what you’re told, the
bank’s attorney couldn’t care less about your problems. He’s there to
close for the bank. You need your own attorney to help you through what
may be the biggest deal of your life. Any one of the following could
repay your lawyer’s fees two or three times over. I strongly believe
you should have your own attorney whenever you buy. Here are some of
the obvious things that you need help with.
1. ) Closing dates: Don't rely on the purchase contract for a
closing date. The contracts all read "on or about' or "on or before."
In New York any contract with those terms allows the seller to sell up
to thirty days after that date. Some buyers have actually ordered
movers based on a contract date. Imagine their surprise when the seller
isn't out and isn't ready to sell. Think carefully about your plans and
set a date in the contract, and then have your attorney push, push,
push for it.
2.) Seller Concessions: If you reach a price with a seller,
and add ‘seller concessions’ to the price, nine times out of ten, you
won't get your fair share on the deal. Banking laws don't allow money
to go back to the buyer at most real estate closings. If the costs are
less than the concession, the bank’s attorney won’t give you the full
concession you negotiated. In fact, you will be paying the seller that
much more money in addition to the purchase price. Banking laws require
the "up to" language and it is a matter of negotiation at the time of
closing to make sure that the concessions are as intended rather than
literal. Your attorney must try to get your full credit no matter what
the bank attorney has on his closing statement.
3.) House sold "As Is." Where a
contract calls for an "as is" contract, there still has to be a full
Property Disclosure Statement, and the buyer should push to include a
"structural inspection" clause in the contract. The second phase of
inspection is that the house is sold "as is" as of the date of
contract. The seller is responsible repairing any damages between the
contract date and the closing. So an intense inspection right before
closing is critical. Then if there are problems, you will really need
your own attorney to set up escrows for repairs or to negotiate a new
deal. Look the place over with a fine tooth comb at contract, and do it
again just before closing. Any adverse changes, get your attorney to
protect your contract rights before you get into the closing room.