Hawaii Real Estate – Should You Take Your Attorney to the Closing?

October 20, 2011 by  
Filed under Real Estate

Comments Off on Hawaii Real Estate – Should You Take Your Attorney to the Closing?

It’s a good idea. Many buyers who are experienced in Hawaii real estate transactions feel perfectly comfortable going to the closing themselves. However, if this is your first home pur­chase or you are unfamiliar with the closing procedure, then you would be well advised to have an attorney with you to explain what’s going on and to check for errors.

The closing is where you sign the mortgage documents, agree to give the seller the money for the purchase, and execute other documents needed to finalize the transac­tion. Typically, it is handled in an escrow or title insur­ance office. On the East Coast it may be handled in an attorney’s office.

Don’t expect all of the closing documents to be pre­pared correctly. Often there are mistakes, particularly in the math. Sometimes even the loan documents contain errors. For example, the interest rate may be wrong or the conditions of an adjustable rate mortgage may be differ­ent than what you agreed to. (Usually it’s just a matter of the lender sending in the wrong documents.) You want to I be able to detect the errors and get them corrected on the spot. To sign now and hope for the best later on is not an advisable course of action.

Many buyers mistakenly believe that their real estate agent will accompany them to the closing to explain things. After all, the agent was helpful in finding the house and in conducting the negotiations. It’s only natural to expect the agent to continue being helpful right through the close of the deal.

Most agents, however, will not accompany you to the closing and will not advise you on what you are signing and whether or not the document is correctly prepare The reason is liability—they don’t want to be liable for any errors or mistakes that occur at closing. In addition, you may need and ask for legal advice; because very few agents are also attorneys, they cannot provide you with such information.

Also, don’t expect the title or escrow company officer to provide you with much in the way of explanations or advice. They may say something such as, “This is the mortgage note,” or ‘This is the proration schedule.” But if you ask them to elaborate, they may simply add, “It’s what the lender sent…”

You are on your own at the closing. Many experienced buyers feel perfectly comfortable with this. If you don’t, then your attorney is the one to provide you with advice. If you are thinking of buying Hawaii real estate visit www.myhawaiirealestateonline.com