Question: Why do I need an attorney to represent me in a residential real estate transaction?

An attorney usually provides the following services for his or her client in a real estate transaction:

Buyer:
If you are a buyer, the attorney will review your real estate contract (within the contractual time for attorney modification) to make sure the contract is fair and equitable to you. (Note: Most "fill-in-the blanks" contracts utilized by realtors are written by attorneys to be relatively fair to both the buyer and seller. Contracts for the purchase of a new home from a builder or developer, however, are written by the builder's attorney, and favor the builder's position. It is strongly recommended that if you enter into a contract for construction that you insist on attorney review.) The attorney will also assist the buyers in any problems that they encounter prior in closing with home inspection, possession or financing issues. The attorney deals directly with the seller's attorney to illeviate any concerns or problems you encounter, or if need be, to void the contract and obtain the return of the buyer's earnest money.

At closing, the attorney will examine the transfer documents to make sure that the buyer is purchasing the correct property. The attorney will also review the survey to determine whether any encroachments of property exist. The attorney will explain all mortgage documents to the client before they are signed. Most importantly, the attorney will review the title commitment to ensure that the buyers are purchasing a property with good title, free and clear of all liens of the seller or other parties which may cloud ownerhip.

Seller:
If you are the seller, most of the work of the attorney is done prior to closing. The attorney will assist you in preparation and execution of the contract, if necessary, or review an executed contract within the attorney modification time. The Seller's attorney orders the title insurance commitment, the survey, arranges for payment of state and local transfer stamps, and works with the title insurance company to schedule the closing and prepare closing and RESPA statements. If you own a condominium or townhome, the attorney will work with the homeowner's association to ensure that transfer of ownership is smooth.

The Seller's attorney is also responsible for preparation of all documents which transfer title from the seller to the buyer, including the deed. At closing, the attorney represents the seller in any title or transfer disputes, answers your questions (Why do I have to pay for that?) and explains the documents being executed.

An attorney is a vital player in real estate transactions in Illinois, working with the buyer and seller, lender, title insurance company, and realtors to protect the interest of his or her clients. Attorneys in Illinois generally charge only a few hundred dollars for residential real estate services, fees which on average have not increased in 25 years. In a transaction as large as the purchase of a home, most people agree the security of having an experienced legal representative on their side is well worth the price.

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(Note: Answers to "Questions of Laws" are designed to provide general information about the law or procedure in the State of Illinois, and not as legal advice for a specific legal issue. If you have a legal problem or specific question, you should consult an attorney.)