Selling in IL with no attorney?

Question

My last real estate transaction the attorney showed up at the closing to pick up his check, I don't recall him doing anything meaningful with the transaction at all. He explained a few forms to me, that I didn't need explained and poof the closing was over and he was out there with a $475- check. I don't need an attorney to go over pro-rations with me, and I have already ordered the title. Don't really see why I would need an attorney unless a dispute arises, than expect I could hire one?

Bob Floss II · Answer

@Scott Schultz  In Illinois and particularly around Chicago, the buyer and seller both have an attorney.  In fact, frequently the other attorney and I are the only people at the closing.  With investment property its very common for the investors to give power of attorney and we conduct the closing ourselves.  Also keep in mind that in Illinois, typically attorneys handle title clearance so they are very involved with the process.  It sound like Robert used a title company that handles everything in-house.

From the client perspective, using a title company that handles title clearance themselves seems easier so they prefer it.  From the attorney perspective, letting the title company handle title clearance seems easier because they are interested in getting it closed.  I'm obviously biased but I feel like having the attorney handle title clearance ensures someone is looking at the transaction from the view point of protecting the parties instead of getting the closing done.  I've consulted clients that purchased properties through escrow title companies that handled everything for the closing and found they were taking title with liens and questionable items on title and were not informed.  It was as if the company took the attitude of, if you didn't understand your liability, that's your fault, not ours.

There is also the issue of money.  Title companies want to do title clearance so they can keep all of the title policy funds.  When an attorney handles title clearance, the title company pays the attorney a fee for providing that service. The fee for doing title clearance far outweighs the attorneys fees.  It's not uncommon for an attorney to discount their fee in order to get the title fee.

George Skidis · Answer

Using an attorney is based upon your level of need. They are not required by law. In fact any documents an attorney can generate you can generate and get those fees removed from the closing.

However, having an attorney review the docs is still a good idea. If you are looking for access to an attorney and document review consider joining LegalShield for just under $540 a year. document review and phone calls are at no additional charge.

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Marcin Talaga · Answer

If you don't feel your attorney did anything, then you have a bad attorney.  Find a good one.  I can recommend one if you'd like.

There is a saying that I learned to remind myself over the last few years.  "The cheap man pays twice."  $475 for an attorney is not a bank breaking amount and yet can save you from a lot of future headaches and expensive mistakes.  Of all the closing costs in an Illinois closing, that is one of the cheapest.  Not sure why anyone would not use an attorney.

Johnetta Paye · Answer

Account Closed, I have represented buyers in real estate transactions where they agreed to cover the title fees and closing cost.  Those deals involved real estate investors buying from distress sellers.

A title company typically only prepares a standard deed.  A seasoned real estate attorney can make sure the right deed is being utilized for the transaction (i.e. warranty deed or special warranty deed).  Further, the attorney can make sure that all the exceptions on the title commitment are cleared.

I do agree with you that it is advantageous to have an active attorney represent you in the closing and one that makes you feel that your transaction is a priority.

Best,

Johnetta G. Paye

Peter S. · Answer

Account Closed we use attorneys in the Chicagoland area but once you go down south near Urbana or far west attorney's are not involved.  Also many other states don't use them either.  I bought a vacation home in Wisconsin and asked the agent for a local attorney and she said 99% of deals in that market are sold without attorneys.

If you are confident in reviewing your own contracts I don't see why you couldn't close without one.  Personally I look at the $500 as insurance, or knowing that I have someone to talk to if issues do arise.  Maybe find a different attorney that will be more hands on and take time to review things.

Bob Floss II · Answer

Account Closed You may not know an issue has come up until you are at the closing table.  Your attorney didn't do anything leading up to closing? No attorney review, reviewing title, preparing deed?

Account Closed · Answer

Your a buyer offering to pay for title costs?

That is so weird, it could actually throw a seller off guard in a good way. The down side is most buyers and sellers are both so ignorant about title costs, the real value of that offer might not be appreciated by the seller.

Like your thinking outside the box though.

Account Closed · Answer

If my contract ever comes over from the buyer, will just pay my past attorney $500 ish if he is agreeable to that without adding on to the title fees.

Account Closed · Answer

Scott, no problem. Again my concern is using funds to their optimal potential, sometimes that involves some hair splitting. On the selling side a big issue with attorneys is how they jack up the title fees. I've seen attorneys jack up title fees by over a grand on small transactions.

Account Closed · Answer

Peter and  Scott, you both brought up interesting points and questions. My last deal where the attorney did very little it really was not his fault, other participants in the transaction were not following up with him. And he did advise on a matter post closing that was helpful. I am using a title company that will prepare the deed, so I really don't need an attorney for that. A big issue with not having an attorney in the Chicago area, the other party likely will have an attorney, and if some issues arise, they could very well have the upper hand negotiating those issues because they have a more knowable legal advocate than you do.  Frankly, I am torn on the issue, appreciate the insights.

Selling in IL with no attorney?

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