Q. I have just signed a contract to purchase real estate; what should I do next?

A. Immediately after signing the contract, follow these steps for a successful closing:

1. Contact attorneys to discuss legal representation. Your realtor will provide names and numbers. Ask the attorneys what their closing fee will be, if the fee includes the title exam, and whether the fee will be waived if the contract fails to close.

2. Deliver a copy of the signed contract to the attorney you retain. Your attorney needs the contract to order the title work and ensure that your rights are protected. Your attorney should be retained and delivered a copy of the contract within one week of it being signed.

3. Apply for a mortgage loan. To expedite the loan approval process, immediately deliver copies of the following documents to your lender: the contract; two years of W2's; a year-to-date paycheck stub; three years of tax returns; and current bank statements.

4. Retain a home inspector and a termite company to examine the property and a surveyor to plat its boundaries. Your contract has deadlines on reporting property or title defects to the seller. Ask either your attorney or realtor to assist you with these matters.

5. Apply for hazard and flood insurance policies. To expedite the underwriting process, immediately provide the following information about the residence to your insurance company: the year it was built, the number of heated square feet, the type of construction, and its elevation above sea level.

6. Be prepared to obtain a certified bank check for the funds needed to close the contract. A personal check is not acceptable. Your attorney will let you know the exact amount needed to close the day before closing.


Q: Why do I need an attorney?
A: Conducting a real estate closing constitutes the practice of law, which only an attorney can do.

The purchase of a home is the biggest investment most of us will ever make and a real estate closing is a complicated legal process involving the execution of many legal documents which have significant financial implications; for example, the contract of sale, promissory note, mortgage, settlement statement, deed and many other documents. An attorney will examine the closing documents on your behalf to make sure your rights are protected. Anxiety is a natural part of buying or selling a home, and the guidance of a competent attorney can reduce anxiety and make it a positive experience for you.


Q: Why do I need a home inspection?
A: The purchase of a home is probably the largest single investment you will ever make. You need to learn as much as you can about the condition of the property before you buy, so that you can minimize unpleasant surprises and difficulties afterward.
The standard home inspector's report will review the home's heating and air conditioning system, interior plumbing and electrical systems; the roof attic and visible insulation; walls, ceilings, floors, windows and doors; and the foundation, basement and visible structure.

Your real estate contract may obligate the seller to repair any defects to the home. However, unless you notify the seller of the defects prior to closing and request that they be remedied, you may lose your right to have the seller make the repairs.

A home inspector is typically contacted immediately or within a few days after the contract has been signed. Do not delay ordering the home inspection or delivering a copy of the inspection report to the seller; often, the contract will limit the seller's repair obligations to matters which the seller has received written notification of within 14 days of the contract date. Also, before you sign the contract, make sure that there is an inspection clause in the contract, making your purchase obligation contingent upon the findings of a professional home inspection.

Even if the home inspection proves the home to be in good condition, it was still a good idea to have one done. With the home inspection report in hand, you can complete your home purchase with full knowledge of the condition of the property and all its equipment and systems. You will also have learned many things about your new home from the inspector's written report, and will want to keep that information for future reference.