Resent-Message-Id: <8707231500.AA01112@bk.sei.cmu.edu>
Date: Tue, 21 Jul 87 09:49:43 PDT
Message-Id: <8707211649.AA21062@ames.arpa>
From: harvard!think!ames!ihnp4!ihlpg!hammondj@husc6.harvard.edu
To: sei.cmu.edu!bjz@seismo.css.gov
Subject: Re: Buying a new house
Newsgroups: misc.consumers.house
In-Reply-To: <1942@aw.sei.cmu.edu>
Organization: AT&T Bell Laboratories
Resent-To: bovik@spice.cs.cmu.edu
Resent-From: Barbara.Zayas@sei.cmu.edu
Resent-Date: Thursday, 23 July 1987 11:00:20 EDT

In article <1942@aw.sei.cmu.edu> you write:
>My husband and I are buying our first home and wanted information on whether
>or not we need to hire a lawyer to help us with the closing.  We've had no
>difficulty to date with either the owner or the agent/realty company.  As a
>matter of fact, both have been wonderfully helpful.  However, some of our
>friends suggest (strongly) that we hire a lawyer just to be sure.  Well, my
>question is, to be sure of WHAT?  What are we missing?
>We're having a(n):   	termite inspection 
>		     	deed search 
>			appraisal 
>			survey
>			engineer's / architecture inspection
>
>We're dealing with one of the larger more reputable realtors, banks, and
>mortgage companies in the area.  I know that we have to be careful about the
>interest rates (mortgage companies often cause unnecessary delays and delay
>the closing until the 60 day rate lock has expired).  We're making certain
>that things are progressing in a reasonable amount of time.
>
>So, the bottom line is that I have a few questions:  1) should we hire a
>lawyer  2) what problems might we encounter without or without legal
>representation (taking into consideration that the above-mentioned work is
>being done)  3) are there any words of advice for closings, in general?

I'm not a lawyer.  From your article I believe that neither are you.
Since this is your first house it may be a wise thing to hire one.
The realtor, banker and selling homeowner even though they appear to
be on your side really are looking out for their own interest.  A
contract for buying your first house (its home when you move in)
should go as smooth as possible.  For piece of mind I would hire
a lawyer.

One closing I had my laywer saved his entire fee before hand since
the S&L was about to use the old bait and switch routine and jack
up the interest rate. (Actually the savings was considerably more,
e.g. .1 percent for 30 years is $2.82 per month per $1000 borrowed.)

Even though the agent/realtor is trained in handling closings, they
aren't lawyers either.  Realtors by law aren't licensed to practice
law.  Realtors by a sign contract are obligated to their client,
i.e. the seller.  If you have a sign contract with this agent
to help you buy the house, then you'll be paying the commission,
otherwise the seller does - in which case who does the agent really
represent?

Now for Mr. Banker, he doesn't really care enough about the property
he's lending money on as long as the appraised value is equal or
greater than what your are borrowing.  His interest is your interest,
i.e. that .1 percent jack in interest rates is more money in his bank.

What type of deed search are you having?  Will this be handled
by a reputable company?  Will this search prove the title is
clear?  Will this search guarantee that the title is free of
all encumbrances, i.e. liens against the property.
Has there been any major work on the property within the last
six months, if so there could be a mechanics lien placed on the
property after the deed is searched, then what will you do?

Please do not get me wrong, I truely wish that all goes well.
However, since there are many ways in which a simple purchase
like buying a house can go wrong.  At least for piece of mind
do yourself a favor and get the lawyer.