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| 1. Can you represent the mortgage lender and me at the same time? |
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Yes. Although inherently a conflict, lawyers typically represent the borrower and the mortgage lender. We are approved attorneys for over 30 mortgage lenders within the state and nationwide. It's unusual these days for a mortgage lender to require you to use their own attorney. If so, you should ask what the lender's attorney will charge for lender and borrower representation. A mortgage lender cannot force you to use their attorney for your own representation. If faced with a mortgage lender who requires you to use its specific attorney, we will typically discount our fee to insure that you do not pay any more for having your own attorney. We believe all borrowers should select their own counsel in real estate transactions. This is often one of your biggest investments. |
| 2. What's your advice for a buyer purchasing property with an underground oil tank? |
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Require the seller to remove the tank before closing in accordance with state and municipal regulations. A leaking oil tank can cost an owner thousands of dollars. A leak can move underground to neighboring properties, and the liability for clean-up costs can be astronomical. We recommend that the seller remove the tank prior to closing and provide the prospective buyer with appropriate certificates affirming no leakage. |
| 3. Do you recommend purchase of an owner's title insurance policy at closing? |
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Yes. Title insurance protects against problems in the title to your property. It focuses on the past. It insures that your interest in the property will be secure as of the time you acquire the property. We are agents for Connecticut Attorneys Title Company (CATIC). Mortgage lenders require title insurance for the amount of the principal amount of the mortgage, called a mortgagee’s policy. It insures the mortgage lender for the principal amount of the loan. We recommend that buyers of real estate purchase an "owner’s policy". For a few dollars more, this policy covers the mortgage and your "equity" in the home if there is a title defect. A title policy protects against unrecorded or improperly recorded items such as lost or forged deeds, mis-indexed deeds and many other problems which may not be discovered in a title search. |
| 4. Do you recommend that a seller or buyer have the real estate contract reviewed by an attorney prior to signing? |
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Yes. Quite often, parties to a transaction are too eager to sign a purchase and sale agreement without adequate reflection. Our job is to be objective and point out weaknesses in the deal. We look at the transaction from your point of view and consider all the issues. Are the contingencies clear and unambiguous? Is there enough time allowed for the mortgage commitment? What about personal property to be conveyed with the premises? We review hundreds of contracts and have seen many of the issues that arise. Our goal is not to “do the deal” at all costs, but to protect your interests, first and foremost. Do yourself a favor; let your attorney review the contract before you sign. |
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