Today's closing drama, brought to you by the numbers '$550' and 'I' (that's short for "I don't DO real estate closings on a regular basis")
Buyers and sellers. We know that you have friends and family members who are attorneys. We as real estate professionals applaud them for surviving the three (or more) grueling years of law school! However, you should know that just because they had to study real estate law as a course or two while in school, they may not be experts in real estate law.
Case in point.
*Allow me to preface this story by saying that I am NOT a lawyer and that North Carolina's policies and traditions may be different than those in your state. Please consult a local expert!*
My closing today (I represented the seller) was a fiasco. The buyer's agent had originally selected a local real estate attorney for the closing-he's very good and very efficient. But then the buyer wanted to change to a 'friend of the family' who would 'do her closing as a favor'. (In NC, the buyer, seller, and lender are all represented by the same attorney at closing, buyer selects).
Define 'favor.' We'll start with the fact that he charged her $100 than the first guy her agent recommended. My seller was planning to attend closing, but his wife couldn't get off work for the drive (they now live out of state), so her documents needed to be sent to her and notarized before closing. My assistant chased that attorney for three weeks trying to get the documents sent to the wife-he kept saying he was 'too busy' and 'would get around to it' or that he was 'tied up in court.' Aha. We finally get the docs sent down at the last minute. The lender dragged around sending the package (for a 10a closing today, package finally arrived at 9a but the paralegal didn't know how to open the email....aaarrrrrghhhh.....). Could the attorney call them and ask for it? Oh no-he was 'too busy'-again. So the buyer, buyer agent, seller and myself are sitting around for an hour in the lobby til Mr Friend of the Family Attorney strolls in at 1050a. So sorry he was late, he had 'important meetings' to attend to. Oh-so we're NOT important? Thanks.
We finally sit down to close at 1130a. My seller is already steaming out of his ears because he needs to get back to work. He hands over his docs, signs the HUD-but there's no 1099 for him to fill out. You know, the 'yes, we have no bananas' double negative question form. I ask the attorney where it is-he claims he's NEVER HEARD OF SUCH A FORM. And looks at me like I have grown three additional heads in his office. I explain that he needs it for his files since he's not going to report this sale to the IRS, as my seller did indeed live in the house two out of the past five years. He says that he can 'make up' a document if it will make me happy. So I excuse myself, and call the attorney with whom I do a LOT of closings to verify what I need to get out of this guy. My Professional Full Time Real Estate Attorney says that we're probably better off having a CPA certify it, than a made up form by this guy. So my seller and I leave.
My seller says: 'This guy must not handle any real estate, you do a HELL of a lot more closings than he does.'
So sellers and buyers-if your friend or family is a full time professional real estate attorney, then we can talk about using them. But if it's a favor? Do yourself a favor and use someone who specializes. All doctors go to med school but you sure wouldn't see a proctologist for strep throat, now would you?
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