Initial Consultation and Engagement
The first milestone is an initial consultation where you and the attorney discuss your transaction-whether you are buying, selling, leasing, or dealing with a land-use issue. During this meeting, the attorney will assess the scope of work, confirm there are no conflicts of interest, and provide a fee agreement (often a flat fee for a standard residential purchase or an hourly rate for more complex matters). You should be prepared to share the purchase agreement, any disclosures, and preliminary title reports.
Contract Review and Drafting
Once engaged, the attorney reviews the purchase and sale agreement (or lease) with an eye for risk. This milestone typically involves:
- Verifying key terms: Price, closing date, contingencies, and included/excluded property.
- Checking for standard clauses: Financing, inspection, and appraisal contingencies.
- Negotiating revisions: The attorney will propose amendments to protect your interests, such as adjusting repair caps or clarifying the “as-is” condition.
- Drafting addenda: For unique issues like seller financing, earnest money deposit terms, or special disclosures.
Due Diligence Period
This is often the busiest phase for an attorney, running concurrently with the buyer’s inspection period. Key tasks include:
- Title review: The attorney examines the preliminary title report for liens, easements, or restrictions that could affect ownership or marketability.
- Survey and zoning analysis: For commercial or vacant land, the attorney may review surveys and zoning ordinances to confirm permitted uses and setbacks.
- Disclosure review: Evaluating seller disclosures (e.g., property condition, lead-based paint, natural hazards) and advising on whether any red flags require further investigation.
- Assistance with HOA documents: If the property is in a homeowners’ association, the attorney reviews covenants, conditions, and restrictions (CC&Rs) to ensure no surprises.
Contingency Waiver or Renegotiation
After due diligence, the buyer must either waive contingencies or negotiate remedies. The attorney helps:
- Draft a cure request: For issues found during inspections (e.g., structural defects, unpermitted work).
- Document a contingency removal: Ensuring the waiver is written correctly to avoid waiving rights prematurely.
- Advise on risk: If a major problem surfaces, the attorney can counsel on whether to terminate or proceed with a price adjustment.
Pre-Closing Coordination
In the weeks before closing, the attorney ensures all legal and logistical pieces are in place:
- Loan document review: The attorney reviews the mortgage commitment and closing documents for accuracy, including note, deed of trust, and truth-in-lending disclosures.
- Title clearance: Ensuring all curative work (e.g., removing old liens, correcting legal descriptions) is completed.
- Escrow instructions: The attorney may draft or review escrow instructions to align with the contract terms.
- Closing statement review: Verifying the settlement statement (e.g., ALTA statement or HUD-1) for correct prorations, credits, and fees.
Closing and Post-Closing
The final milestone is the closing itself, where the attorney may:
- Attend the closing (or review remotely): Ensuring documents are executed correctly and funds are disbursed properly.
- Record the deed: The attorney often coordinates with the title company or county recorder to file the deed and mortgage.
- Post-closing follow-up: After closing, the attorney may provide a final package including recorded documents, title policy, and key reminders (e.g., changing homeowner insurance, updating property tax records). For ongoing matters like landlord-tenant issues or boundary disputes, the attorney remains a resource.
Note: Milestones can vary based on state and local laws. Always consult a qualified real estate attorney for your specific situation and verify rules with current state and local regulations.