Real Estate Closing Attorney
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Real Estate Closing Attorney
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Real estate closings can be extremely complicated with many steps to get to a successful closing. In fact, the average real estate closing involves about 10 to 15 hours of work from "contract to closing." Therefore, it is advisable to hire an attorney to guide you through the process making sure everything is handled correctly and "title" properly conveyed. Chicago Real Estate Attorney Brian Lohse will represent you from the time the offer is presented until the keys are handed over at the closing table.
Lohse Law can assist you with the purchase or sale of: Single family houses, condominiums, townhouses, 2-flats, 3-flats, 4-flats, 6-flats, and parking spaces in the Chicagoland area (or seven (7) counties around Chicago).
If you are either contemplating making an offer to purchase a property, or to accept an offer for the property you are selling, call attorney Brian Lohse first to discuss the important points that should be addressed in the contract.
Lohse Law only handles 15-20 real estate transactions at any given time. Unlike many other attorneys that employ assistants and secretaries to handle everything except the "closing," real estate closing attorney Brian Lohse handles the entire transaction from beginning to end. With such a small caseload, attorney Lohse is able to work directly with you for your closing. Whether you are working with a real estate agent or the property is a "For Sale By Owner," he will guide you through the entire closing process. He will help protect your interests and will explain how particular issues can affect you both legally and financially. You have a lot of money at stake for your transaction, don't you want a lawyer personally working for you?
Compared to what you are paying for the new property or what you will be receiving for the sale, an attorney's price is relatively small. In fact, real estate attorney fees have been about the same since 1978!
The majority of real estate closings in Illinois involve attorneys because the Illinois Supreme Court has ruled that even though many items may appear simple the consequences are too large. The Illinois Supreme Court specifically prohibits a real estate broker from performing the tasks of a Lawyer (The Chicago Bar Association v. Quinlan and Tyson, Inc. 34 Ill.2d 117, 1966). See more in the blog page about what a broker can and cannot do.
Your real estate attorney has your legal interests in mind and owes you a duty of loyalty. Others involved in the real estate transaction do not owe you a duty of loyalty (i.e. realtors, lenders, appraisers, inspectors). These other professionals may not have your best interests in mind and may be motivated by commissions or payment. Before you sign documents involving significant legal rights and obligations, I can explain the terms and help you understand what you are signing. Remember that it is your attorney's responsibility to look after your best interests, not your realtor.
Burnett v. National Association of Realtors is a lawsuit that may really change the real estate industry and how/who pays the real estate commissions moving forward.
Here's what's happening... for many decades, Sellers have agreed to pay a commission to the Buyer's Real Estate Agent (or Realtor). For decades, it has been a standard practice that the Seller pays a commission to the Buyer's Realtor because the Buyer's Realtor helped procure (find) the buyer. Moving forward, when a Seller is listing a property for sale, the Seller can decide if they want to pay the Buyer's Realtor a commission or not. For example, up until just recently, usually the Seller would agree to pay a total of 5 to 6% in commissions. Half of this amount is paid to the Buyer's Realtor if/when the deal closes. Now the Seller may opt to only pay half that amount to only their Realtor.
If a Seller opts to pay a $0 commission to the Buyer's Realtor, the Seller may unknowingly be eliminating a large swath of potential buyers because the Buyer will have to pay their Realtor the commission now on top of the sales price. If the Buyer cannot afford to pay the commission to their Realtor, the Realtor now has to decide if they wish to work for free. For example, let's say a house is being sold is $500,000. The Seller may now opt to pay a 2.5% (instead of 5%) commission to their realtor ($12,500). The Buyer is going to be responsible to pay their Realtor 2.5% ($12,500) on top of the sales price (unless the Realtor has agreed to work for free). Can you as a Buyer afford to pay your Realtor's commission on top of the purchase price?
I will leave you with a question to ponder (there is no right or wrong answer). Hypothetically speaking, if you are the Realtor for a Buyer, would you show your Buyer-client any properties for sale that didn't offer you any commission? My guess is the answer is probably "no." The other question is, does your Buyer-client know that they are potentially responsible to pay your commission?
FOR POTENTIAL BUYERS THAT DO NOT WANT TO PAY ANY COMMISSIONS:
For Buyer's that have found a home that thy would like to Purchase without the use of a Realtor/Broker, I can assist you. You must first attest that a Broker did not find or show you the property. If there is no Broker/Realtor ivolved, I can help you prepare the written offer to submit to the Seller. My fee to do this is $300 per property. This could be a large cost savings opportunity to you if you are interested in a property that doesn't offer a "co-op" commision to the Buyer's Realtor. I cannot offer this service for free because it takes anywhere from two to four hours to properly prepare and submit the offer for you.
If you are looking to estimate what the sales proceeds will be, use the worksheet below to help you estimate the net proceeds. This will help you estimate how much you will walk away with after factoring in most of the costs associated with the sale. Scroll down for the link to the real estate closings Estimated Sales Proceeds Worksheet.
Single family homes valued from $50K to $5MM
Condominums and penthouses valued from $25K to $2.5MM
Townhomes and row homes valued at $50K to $2MM
Greystones and Brownstones from $100K to $2MM
Bungalow homes valued from $50K to $1MM
Chicago parking or garage spaces valued from $10K to $100K
Multi-family flats valued from $100K - $3MM
Apartment buildings with up to 4 units
Vacant lots in Cook, Dupage, Kane, Kendall, Lake, McHenry or Will County. Valued from $20K to $1MM