Legal advice on Escrow in real estate

1. Legal Potholes Abound The contract is a very lengthy and legally binding agreement with many conditions that have to be met and buyers and sellers are both bound to many obligations of which they may not be aware. Because real estate agents cannot draft documentation beyond completing a standard real estate purchase agreement. Real estate agents would be operating outside of their remit if they attempted to revise or redraft part of a purchase agreement. So if the buyer or seller wanted to change certain clauses in the document, the real estate agent is not legally be permitted to make those changes or advise whether they should be made. In such cases, it is wise to have an established relationship with an experienced real estate attorney who can draft and revise purchase agreements, legally, to facilitate the transaction. 2. It’s hard to differentiate “Legal Advice” from “Legal Information” Realtors, real estate agents and title agents are not allowed to give any legal advice, legal guidance or legal opinions unless they are also an attorney licensed to practice in Florida. This is both a legal requirement as well as one of professional ethics. Agents can, however, recite the legal requirements of the transaction without interpretation. This is referred to as providing legal information as opposed to legal advice. It is recommended that agents retain a competent real estate lawyer to determine what actions may be crossing the fine line between legally reciting legal concepts related to the transaction and attempting to interpret them. In cases where a legal opinion is required, then having an attorney involved ahead of time can make the process more efficient. 3. Litigation is Common Unfortunately, real estate contracts often times end up in litigation. Having an attorney at the outset (before an offer is made or accepted) may help in avoiding litigation. When all parties are aware of the requirements of the purchase agreement, the chances of a dispute are minimized. In an industry where single transactions routinely exceed six and seven figure dollar amounts, the liability involved with disputes can be significant. Real estate agents should beware of attempting to handle such high-value disputes without legal representation and support. Summary Are you a real estate agent involved in high-value property sales? If so, contact the offices of South Florida Law. Our attorneys are experts in real estate, title and other matters related to commercial and residential real estate in Florida. You can real us on (954) 900-8885

Video: Can A Real Estate Lawyer Represent The Buyer And Seller? FAQ’s With Roy Oppenheim Full Transcript: A question we sometimes get is, “Can a real estate lawyer represent both the buyer and the seller in the same transaction?” Lawyers are governed by rules of ethics that are promulgated by, first by the American Bar Association, and then by each state; they have specific rules that they have to follow. And typically, if you are representing two parties that have different interests in the transaction, you would need what’s called a Conflict Waiver. Conflicts: Can A Real Estate Lawyer Represent The Buyer And Seller? Some conflicts can be waived, some cannot. So for example, you can’t be both the prosecutor trying to put someone in jail and also be defending that person. I mean, that’s an irreconcilable conflict that anyone can understand. At the same time, if you have a buyer who is trying to get a property cheap and you have a seller who is trying to get the most money on their property… You know, a real estate lawyer is not a broker. They’re not trying to necessarily bring the parties together. They’re supposed to advocate zealously for each particular client. There could be some unique circumstances, maybe in a family matter where there’s a buyer and a seller and they just want to transfer the property and you’re acting as a middle man and you don’t have those adverse interests, they probably still would have to sign a conflicts letter. But under those circumstances, you could have a transfer from a father to a son or to a daughter or to a wife. And you technically may have a buyer and a seller, but they’re not arm’s-length transactions. So if they’re not really arm’s-length transactions, then you get a Conflict Waiver, the interest, under those circumstances maybe the lawyer could represent both parties. But in a traditional, typical transaction of a buyer and a seller that’s arm’s-length and they don’t know each other and they don’t have a relationship, the answer is probably no. They probably should not be representing both parties. Oppenheim Law | Real Estate Attorneys 2500 Weston Rd #404 Fort Lauderdale, FL 33331 954-280-4651 Originally posted on Oppenheim Law: https://www.oppenheimlaw.com/news-resources/videos/can-real-estate-lawyer-represent-buyer-seller/ (Can A Real Estate Lawyer Represent The Buyer And Seller?)

Who has the right to select the title company? This is a popular question that has raised emotions and controversy especially when selling property. Most buyers and sellers have their own opinions on how to choose the tittle company. Lenders, brokers and agents also have their own views. In most real estate transactions, there are 3 parties who can direct the closing to a title company of their choice: the seller, the buyer and the lender. The Real Estate Settlement and Procedure Act has clearly defined parties that can and cannot direct the closing. Can the Seller choose the Title Company? The answer to this question is YES. The accepted practice in real estate industry is for the buyer to submit an offer to purchase a property either alone or through an agent. The buyer will then select a title company. However, if the seller or if the agent representing the seller is not comfortable with the title company that the buyer has selected or has a strong opinion on where the closing process should be done, then the seller can counter the buyer*s proposal and suggest an alternative. The conventional wisdom in this case is that because the seller is paying for the title policy, then he/she should also have the right to choose the title company. If the buyer is purchasing or paying for the policy, then arguably, he/she also has the right to choose the title company. However, this is not as clear-cut as it may sound. For instance, the buyer can argue that even if the seller is paying for title insurance, that cost was factored in when determining the sales price, meaning that the buyer is paying for the title policy premium of the owner (seller). The buyer can also argue that supposed the seller did not to pay for owner title policy premium, would he/she have been willing to deduct cost from the price of the property upon closing the deal? These are very crucial questions that that still don*t have definitive answers. The normal practice in real estate is that when you have a buyer who insists on which title company to use, then you should allow the buyer to have his way. This means that the normal standard practice gives the buyer more preference when it comes to selecting the title company. However, if the seller has a strong opinion and insist on directing the closing process to a title company, then it may be a great idea to agree to pay premiums for both the lender and owner title policies. Should I use the Seller*s title company? The title company that you choose can greatly influence the closing process. It can determine whether a property sale/purchase will be successful or not. If you are asking yourself whether you can use the seller*s title company, the answer is YES. However, before you do that, you should first seek advice from a trusted and reliable Realtor*. You should probably seek out a real estate attorney as well. Also, carefully review the terms of the contract to make sure you agree with them. You should also look out for discounts. One of the benefits of using Weston Title is that it is owned by real estate attorneys, Roy Oppenheim and Ellen Pilelsky, who are well-versed in all aspects of purchase/sale and title insurance process. For more information please contact: Weston Title & Escrow Inc., 2500 Weston Rd Ste 404, Weston, FL 33331 (954) 384-6168 Email: [email protected]

Can a Title Company Handle Escrows? YES, they most certainly can. Title companies play several key roles in matters concerning real estate transactions. They act as the agent of various parties involved in real estate transactions, including buyer, insurance company, and seller. One of their most important responsibilities is the handling of escrow accounts, which generally contain funds needed to close the deal. Funds are set aside in escrow accounts to ensure that the money is used only for its main purpose, namely for settlement and closing costs. Buying and selling of property is capital-intensive and usually involves a transaction of huge sums of money. It is therefore important to ensure that the process is handled by a neutral party that has no special interest. Title companies usually handle the transfer of funds and all necessary documents from one party to another. They do this to ensure that all conditions that have been put in place are met before money and property change hands. The tittle company usually implements written instructions given by the main stakeholders (the seller, buyer and lender). These instructions include receiving necessary documents and funds, completing the required forms, and handling necessary items (funds and documents) to respective parties upon completion of the escrow process. As closing and settlement agent, a title company not only manages the closing process but also conducts it. Title companies are well-versed in the mechanics of the real estate industry; they know how sensitive real estate transaction are and they ensure that the process is conducted transparently and smoothly so that both parties involved in the process are happy and satisfied. The closing process can sometimes be very complicated. The title company will assist with resolving any issues that may arise and they will ensure that all parties have reached a common ground before they allow exchange of funds and documents to the seller and buyer, respectively. Should I trust title companies to handle escrows? YES. In fact, they are the best and most recommended choice to handle escrows. As a neutral third party, they have no special interest in the process. Their main goal is to ensure that all parties involved in the process are happy and satisfied. They also ensure that all involved parties have complied with the law and have followed legal process. They will only allow money and documents to change hands if they are satisfied beyond reasonable doubt that all conditions set by parties, and legal requirements, have been met. Therefore, when you choose a title company to handle escrow, you can be sure that your money or documents are in safe hands, especially since they are generally backstopped by giant, publicly-held title insurance companies. Weston Title & Escrow Inc 2500 Weston Rd Ste 404, Weston, FL 33331 (954) 384-6168 Visit: https://westontitle.com Email: [email protected]