Resent-Message-Id: <8707081448.AA23593@bk.sei.cmu.edu>
Date: Tuesday, 7 July 1987 12:56:09 EDT
From: James.Over@sei.cmu.edu
To: bjz@sei.cmu.edu
Subject: Legal Representation
Message-Id: <1987.7.7.16.37.59.James.Over@sei.cmu.edu>
Resent-To: bovik@spice.cs.cmu.edu
Resent-From: Barbara.Zayas@sei.cmu.edu
Resent-Date: Wednesday, 8 July 1987 10:48:46 EDT

Barbara,

I have always used an attorney when closing, however when moving to
Pittsburgh from Evanston, IL (a suburb north of Chicago), our realtor in
Pittsburgh (Howard Hannah) advised against it.  As a result, there were
several problems that went unnoticed until all parties had arrived for the
closing.  This wound up costing me $500, and delayed the closing for 10
days, even though all agreed that it was the fault of Mellon Bank.  Also,
because this was the first time I had purchased new construction, I was
unfamiliar with dealing with a builder, and overlooked several items that
were the builders responsibility, and should have been included in the
contract.  Legal representation would have prevented this.  I will never
make the same mistake again.

I have paid from $250 to $650 for an attorney to handle closings both as a
buyer and as a seller.  It seems like a very reasonable amount for insurance
considering the size of the investment.  Also, some fees are reimbursable or
deductable.

Finally, you didn't mention a survey amongst the items that need to be
completed before closing.  Although most banks will accept a recent survey
(in our case we used the builders), I have subsequently heard of at least
two instances where the builders survey was incorrect. In one case the
home was built on the wrong lot!  A survey cost from $100 to $250.  I am
having one done after the fact.  Because we live in an area of new
construction, I want to make sure that the lot boundaries are correct.  The
wooden stakes marking our property have been knocked out several times by
contractors working in the immediate vicinity.

Given all the details that must be resolved before acquiring a new home, I
would recommend spending the money to get some assistance.

Jim Over