My partner and I have an offer that was accepted in Philly and put down a $1,500 deposit. Being that this is our first deal, which is being purchased from a wholesaler, we want to know if we need to retain an attorney for the transaction. We are paying cash and the wholesaler is of course getting his fee upon closing. Having worked in the mortgage business in CT I have personally closed loans without the need of counsel but not sure if we need to pay a $1k retainer. Not really sure what the attorney would be doing versus the title company.
The seller has already sent over an assignment contract with several errors which makes us want to either use our own contract or just pay to have the sellers contract reviewed.
Any and all advice is appreciated.
As an investor that buys out of state properties, you should at bare minimum close with a title company. There are many things that can go wrong. What kind of deed are they conveying, is title cloudy, etc etc?
We are definitely using a title company, my own research shows back taxes. But the wholesaler sent me a contract with 3 different assignment fees on it, red flag. So that is why we initially thought about getting an attorney to review the assignment contract.
Since there are clear red flags, I suggest that you get an attorney. It is not necessary for every deal, but when there are issues from the start it is best to be safe (with an attorney) instead of sorry. I agree with Jacques many things can go wrong. Do you know if the wholesaler is a newbie?
John - I agree with Shakeira. Given there are clear red flags, this is a no brainer - I'd engage a real estate attorney. Message me if you need a referral here in Philadelphia. I recently engaged a really competent attorney on a real estate transaction who was able to guide me through the purchase process and keep everyone involved honest.
well, we all make mistakes, tell us what type of mistakes were on the assignment? Title co can let you know exactly what you're buying on the HUD 1, the same thing the attorney( or para legal) would show you...
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