How Long Does Attorney Review of a Real Estate Contract Take?
Real estate transaction attorneys conduct attorney reviews in order to identify and address a range of potential issues that could impede progress or completion of contracts, including contract misinterpretation, unresolved property liens, disputes over boundaries and title problems.
Attorney review periods typically last three business days; however, this process may extend if attorneys discover issues requiring further discussion with their clients and investigation.
Contract of Sale
Purchase and sale of real estate can often represent one of the largest financial transactions of a person’s lifetime, so lawyers must take great care in reviewing any contracts of sale to protect their clients’ best interests.
At attorney review, lawyers may address issues such as the amount of deposit needed, scope of property inspections and financing contingencies. Buyers and sellers can add provisions to their contracts that allow them to walk away if certain events take place.
During this three-day window, both attorneys may exchange letters regarding any concerns they have with the terms of the Contract. If your attorney discovers an objectionable clause they can send a letter directly to the seller’s attorney expressing their disapproval of it – effectively stopping its three-day countdown and giving both sides time to come up with solutions that would make the Contract acceptable to both sides.
Contract Misinterpretation
Real estate contracts may contain legal language that may be difficult to interpret. Consultation with a real estate lawyer before signing can provide protection from potentially unfavorable terms or clauses in their purchase agreement.
When there is a dispute regarding the interpretation of contract provisions, courts use an interpretative process known as contract interpretation to ascertain who intended what when creating such language.
Courts often consider whether the parties intended for a contract term to specify delivery by air or land when creating it. Usually, intent of parties can be determined through looking for manifestations of intent in written contracts; however, this is not always feasible.
Unresolved Property Liens
Attorney review allows real estate attorneys to identify potential legal issues and work toward solving them before the transaction concludes. An attorney could clarify any ambiguous contract language that might lead to disputes and recommend changes so all parties understand their obligations; or identify unresolved property liens that obstruct ownership transfer smoothly.
Liens may be placed against property by creditors, contractors or the government for unpaid debts or obligations that remain outstanding. If not resolved quickly enough, unresolved liens can hinder sales at auction and discourage buyers from bidding at auction; additionally they accrue interest and fees which make satisfying them increasingly difficult over time.
Property Boundaries
Property boundaries are essential to homeowners, as they determine where they can legally construct or expand their home. Any disputes over property lines could potentially lead to legal entanglements between neighbors and, in extreme cases, result in litigation proceedings being filed against each party involved.
An attorney review involves searching for any existing liens and inspecting the property survey in detail. Once any discrepancies arise, these must be resolved before the sale can go forward – this may involve gathering new survey information, negotiating with neighbors or filing legal action as soon as possible.
Real estate attorneys can assist in quickly addressing these concerns during the attorney review process by offering solutions, proposing modifications and communicating effectively with all parties involved in the transaction. Once all issues have been properly addressed, contracts can be closed without further delays.
Property Title
Attorney review is an integral step of real estate transactions, providing buyers and sellers alike with additional legal protection that helps safeguard their financial interests. But this crucial process does not come without its risks.
Issues that arise during attorney review can cause delays and increase costs significantly, necessitating lengthy negotiations, document revisions or legal action to resolve them; in extreme cases they could even lead to the complete cancellation of real estate transaction.
Common issues encountered during attorney review of real estate transactions include contract misinterpretation, unresolved property liens and disagreements over property boundaries. Careful investigation and open communication among attorneys can help prevent these problems from derailing a real estate deal; additionally a comprehensive title search and survey can reduce their risks further.