Real estate transactions involve the transfer of large amounts of capital. Buyers have to arrange to wire transfer their down payment funds and obtain a mortgage for the balance due toward the purchase. They may have to cover a variety of closing costs, ranging from inspections and appraisals to title services. They must either wire those funds or provide them at the closing table with certified funds, not a personal check.
It can be very difficult for those navigating a real estate transaction to make sense of the various costs they have to cover. Therefore, it is standard practice for the title company to provide them with a settlement statement that outlines all of the major costs related to the real estate transaction. In some cases, buyers may have questions about some of the charges. They may believe that certain line items on a settlement statement are inaccurate or even fraudulent.
How can people handle issues with their settlement statements before closing?
Thorough review and revision may be necessary
There are some bad actors who may intentionally try to defraud those buying real estate. There are also plenty of overworked professionals in the finance and title worlds who could make mistakes when putting together closing documents.
The best way to avoid costly errors or outright fraud is to secure the assistance of a trustworthy legal professional. Buyers preparing for a real estate closing often need help reviewing the documents, including the settlement statement. They may misunderstand matters on their own, making the guidance and education provided by a real estate attorney invaluable.
While real estate agents can provide basic information, they cannot provide legal advice and may have a limited understanding of the law. They are often not much help when there are questions about or issues with the documents. Perhaps buyers question why there are two different title policy charges on the settlement statement. Maybe they question the amount required to fund their escrow account.
Reviewing the documents personally and then bringing any questions to a real estate attorney prior to the closing can help buyers come to the table with confidence. An attorney can educate their clients about their rights and help them recognize when there may be something actually wrong with their documents. The advocacy of a lawyer can also often help speed up the resolution of issues when fraud or mistakes lead to inaccurate paperwork. Prompt revisions can help the closing occur on schedule.
Having the right support prior to and during a residential real estate closing can help people diminish the risk involved in these massive transactions. Legal support can be invaluable for those signing mortgage notes and deeds.
