WHY NOT TO USE BUILDERS ATTORNEY TO CLOSE ON A NEW CONSTRUCTION HOUSE?
WHY NOT TO USE BUILDERS ATTORNEY TO CLOSE ON A NEW CONSTRUCTION HOUSE?
I keep understanding the meaning of the statement, "we are never too old to learn new lessons from our real experiences in life". These are only high level points from my experience while working with a builder's attorney during the closing of my new construction house.
- A builder's designated attorney is a dual agent in the transaction and cannot fairly represent both parties, the seller and the buyer, at the same time. That are merely facilitating the transaction.
- As a buyer, you bring to the attorney one house to close, versus the builder brings to this attorney a continued stream of business to close on multiple properties. It is anybody's guess which side the attorney will be loyal to despite their claims of being neutral.
- A builder's attorney charges the buyer their full charge ($600-$1000) for the closing, yet they do not represent the buyer.
- The builder's designated attorney declares clearly that they do not represent the buyer or the seller, but merely their role is to facilitate the closing transaction..
- In case of any dispute, they will disagree to take any side even if there is a clear default from one party. Such a legal relationship is useless because the dual attorney cannot fairly judge and decree to make the right correction to any problems that arise during the closing.
- Any special agreements between buyer and seller are more biased to favor the builder who is their real customer. The buyer is merely a party to bring the money to the table to buy that property with no rights granted whatsoever.
- When there is a conflict of interest between buyer and seller, the buyer is informed that the builder can cancel the contract and walk away from the closing thus making the buyer the default party and given a warning that their deposit can be forfeited.
- When the fault is with the builder, not being able to deliver a house fully ready at closing, and if the buyer refuses to close until the work is completed, the buyer is notified about their default for not closing on time and be charged a penalty for each day the closing is delayed. Even though it is clear that the builder is the party at default for not completing the work before time of closing.
- Finding buyers own attorney and paying for it themselves will ensure that they will have undivided attention to protect buyers interest. They will advocate for the buyer in case any dispute arises and advise the buyer correctly without any threats of losing the house, undue penalty and get agreements in writing and signed by both parties.
Reference article to make a good decision about how to choose a closing attorney;
- Solomon Borgawker
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