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What Do Realtors Look For In An Attorney?

By
Real Estate Agent with Leigh Brown & Associates, RE/MAX Executive

I received a call today from a local consultant, who is doing some business consulting for one of the local North Carolina real estate attorneys that I use on a regular basis.

(Here in NC, we don't close with title companies or escrow houses, we still close with attorneys-one of the main reasons our closing costs here are some of the lowest in the country.  And unlike some of our lovely states up north, one attorney handles the closing for buyer/seller/lender.)

It's fairly simple, in my opinion.

Justice scalesFirst and foremost, I use attorneys who are on top of their game.  They know the ins and outs of North Carolina real estate law.  They know our local customs.  They know surveyors, appraisers, lenders, folks at the courthouse, etc.  They're familiar with changes in our state contract paperwork. 

Another part of this factor is their accessibility.  Do they return phone calls in a timely manner?  Are they willing to be contacted after 'normal' business hours (not in an abusive way of course-but there are times when Realtors need someone who can help by answering a question after 5pm)?

In a very close second place is the quality of their staff-specifically, the paralegalsThis is where my assistant has a lot of sway in where we schedule our closings.  If the paralegals are rude to her, don't return phone calls in a timely manner, or lose what's already been faxed to them, then we avoid those law offices.  It's critical in any business that your front-line people be courteous and detail-oriented.  Especially in something as big as real estate.  I'm constantly amazed at the paralegals who are snotty when we call to schedule a closing, who get angry when we call them for information, who lose information sheets, who get irritated when we want a HUD-1 prior to closing (gasp!).  And then these attorneys wonder why we don't schedule there on a regular basis...

The attorney who had retained this consultant is a good business associate of mine-it's always a pleasure to have a closing in his office.  And I let him know when something goes awry with his staff.  Because if I don't tell him what's going on, he won't know, and can't correct the issue.

I'm not going to ramble on about how this applies to real estate teams, lenders, etc-we all know how critical customer service is in today's real estate environment.  But if you take something away here, that's great. 

And of course, if you're curious about how the real estate transaction process goes in Charlotte NC, you know who to call!  Leigh Brown, of course. =)

Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos
Leigh,   Might be interesting to compare your system of closing with an attorney and other states where a title company is used.
Sep 24, 2007 06:27 AM
Susan Trombley
Trombley Real Estate - Wake Forest, NC
Broker/Realtor, Raleigh, Cary, Wake Forest, Youngs
I agree, you must know who is one your team and get you to closing with the least amount of hicups out there.
Sep 24, 2007 06:27 AM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC

Bill-I see it at least once or twice a month, in dealing with relocating folks who are closing back to back.  Invariably they heave a sigh of relief at how much easier it is here and how nice it is for closings to go off on schedule (that is, if the lender gets the package there, but that's another discussion altogether)

Susan-gotta have that good list and that bad list, don't you?  I know I do!!

Sep 24, 2007 06:32 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
Leigh, I went to a Craig Proctor seminar a few years back in Canada, and he told us the same thing. As soon as they get a contract they turn it over to attorneys. Sounds like a great idea to me. Let them follow all the contingencies and we're off to more deals. I understand that's not what you're saying about N.C. but I think this is a great idea.
Sep 24, 2007 08:06 AM
Linda Davis
RE/MAX Home Team - Gales Ferry, CT

We also use attorneys in my part of Connecticut and it is a pleasure.  If there is a problem, I can turn it over to the closing attorneys and let them handle it.  I  recommend attorneys who only practice real estate.  I don't want someone who litigates or handles divorces in their spare time.  Our area has a local "bank bar" committee who meet once a month to discuss real estate matters.  If we (the agents) have a concern about a particular situation that keeps occuring we can have them bring it up for discussion.  They also have members who serve on some of our committees and work on our forms committee, education committee, etc.

Sep 24, 2007 09:45 AM
Dick & Sandy Beals
Wilmington Real Estate 4U Wilmington, NC - Wilmington, NC

Leigh,

Oh boy...the stories we could tell about attorneys.  I won't start, except for a few items.  Why is it that the lender never gets the package to the attorney on time?  Why is it that the HUD statement NEVER   is on time?  And my biggest pet peeve is why don't attorneys handle the details instead of using assistance?  I guess I should be thankful we don't have an attorneys review clause, boy would that ever muck-up the process.  Sounds like I could do without them uh?

Dick Beals

 

Sep 24, 2007 10:54 AM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC

What the heck is wrong with AR?  I've been losing comments all day.  Anyhoo-

Missy-I could hug my attorneys when I see what happens on the other end in certain states (like CA).

Linda-I'm with you. I've added info to my listings that we expect closing with a licensed NC real estate attorney-no title companies and no part-timers. Saves a lot of headaches.

Dick-you just need the good and bad list!  I pitch a flaring fit if a buyer agent tries to schedule with one of the snakes on my bad list. It's part of my fiduciary responsibility to know the difference.

Sep 24, 2007 11:07 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Leigh I did not realize that your closing process was different then ours since we are also an Attorney State, but here the Buyers and Sellers are represented by different Attorney's.

I refer my business to Attorney's for much of the same reasons as you.  It is especially important to me to do business with an Attorney who has exceptional paralegals, because they are the ones that both me and my Borrowers have the most contact with during the loan process.  I have one favorite Attorney and he gets a lot of business from me, he and his paralegals have my complete trust. 

Sep 24, 2007 01:57 PM
Irina Netchaev
Pasadena Views Real Estate Team, Inc. - Pasadena, CA
Pasadena CA Real Estate
Leigh, what a great post and full of information!  We use escrow companies in California.  It's always interesting to read about the process in other states.
Sep 24, 2007 03:48 PM
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

I really like a local attorney who has great paralegals, who are easy to talk to, and who get the HUD right the first time.  I also like how they push me for information.

He also has a great personal touch at the closing table. 

He gives the best explanations to my clients regarding each flake in the blizzard of paperwork they are signing, and takes the time to answer questions thoroughly, in plain English.

Sep 24, 2007 10:39 PM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation
Leigh, I don't know how using attorneys keeps closing costs down, since their billable hours are so high compared to a trained settlement officer working under an attorney.  Our settlement/title companies are usually divisions of a law practice, and they function as disinterested 3rd parties who represent no one in the transaction - they simply facilitate the closing by handling all the required paperwork including title insurance, after conducting a title exam.  The title exam and settlement are the least expensive aspects of any settlement.  Local and state government and lenders are the true closing expenses in Maryland.
Sep 25, 2007 01:07 AM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC
Margaret-a lot of the savings comes in the form of the rates that our closing attorneys negotiate on title insurance.  When the title companies aren't in charge of closing, the rates are waaaaay lower.  Also, I have a lot of concerns about liability when closings occur with title or settlement companies.  Having an attorney on staff isn't the same thing as having one attend the closing and look over the files with buyers and sellers.  They may be disinterested-but the junk fees that they charge around here are higher than the one attorney fee charged.  I don't know about you, but I don't want disinterested in a real estate transaction-I want a diligent party looking over things.  Thanks for your input.
Sep 25, 2007 01:32 AM