Overview: The firm handles a large number of real estate transactions, including re-financings, purchases and sales, and has been the firm of choice of many mortgage brokers and real estate agents.

The following discourse provides basic information about residential real estate transactions in Connecticut. The first legal document signed by the Seller and Buyer in these transactions is a binder. By this instrument, the Buyer offers and the Seller accepts the basic terms of the transaction, supported by a deposit of approximately one percent of the purchase price. The terms contained in the binder are incorporated into a full-fledged contract drawn by the Seller?s attorney, but negotiated to the satisfaction of both parties. At execution, the Buyer pays an additional deposit of approximately nine percent of the purchase price. The contract of sale contains certain contingencies (such as satisfactory property inspection results). Perhaps the most prominent of these is the mortgage commitment contingency. This provision provides that, if the Buyer is unable to obtain a mortgage by a specified date, the Buyer must notify the Seller by the close of business on that day; otherwise, the mortgage contingency is deemed to have been met and the Buyer is obliged to buy the property for cash even if no mortgage can be obtained. In case of the inability of the Buyer to pay cash, the Seller has the right to all deposits paid by the Buyer.

Buyer's Lawyer: The Buyer?s lawyer bears the brunt of the responsibility for closing the transaction. He or she must assure that a mortgage has been obtained; that a satisfactory title report has been obtained; and that all of the documentation required by the Buyer?s lender (including evidence of title insurance and homeowners? insurance) has been provided to the lender in a timely fashion. If the title search reveals liens on the property, the Buyer?s lawyer must assure that they are either released prior to closing or that satisfactory provision has been made for such release after the closing. The Buyer?s attorney must also obtain or issue title insurance policies. Such policies protect the insured against loss or damage caused by existing defects in title or undiscovered adverse interests in the property.

Seller's Lawyer: The responsibilities of the Seller?s attorney include the preparation of the contract, assuring that the Seller?s existing mortgages will be paid off and paying the conveyance taxes to the State of Connecticut (.005 x the purchase price) and to the town where the property is located (.0025 x the purchase price).

Conclusion: All in all, closing real estate transactions is more a cooperative than adversarial process. Good working relationships with the brokers and lawyers who practice in this field, such as those we enjoy, considerably ease the stresses and strains of buying or selling a home.