Twenty Questions

If you are old enough to remember the television show, Twenty Questions, then this article is for you. If you are not old enough, try to follow along. This is where you ask me 20 questions, then guess who I am. Space only allows for 10 questions, so hopefully you will get the answer before too long. (HINT: the writer is an ATTORNEY).

1. Who do I call when I am selling real estate without an agent?
   Some estimates go as high as one out of three transactions are ‘for-sale-by-owner.’ There might be legal questions raised about your title to the real estate, or the owners might have separated or filed for divorce. There might have been a death in the family and the seller is now the executor of the estate, and you wonder how to get the title cleared through the deceased person’s name.
    

2. Who do I call when I have to fill out the Seller’s Property Disclosure Form?
   There are hundreds of disclosures made about the condition of the property in this document, and each one can trip you up if something goes wrong with the house. Just on the issue of public water and public sewer versus well and septic, there have been thousands of lawsuits. You want to be certain that the statements that you make and the answers that you give are true and correct.
    

3. Who should prepare the Agreement of Sale?
   This is the most significant document in any real estate transaction. There are 30 paragraphs and numerous issues to discuss and negotiate. So why would you leave the preparation of a document like this to amateurs?
    

4. Who prepares my deed?
   Nothing in a real estate transaction is as important as the deed, since it is the document that is recorded in the County Recorder’s Office, and it tells generations of title searchers what property was conveyed. We handled a case years ago when our client returned from vacation one day to find the neighbor’s cattle grazing in what used to be her backyard, all because the old deed description had identified an old white oak tree as the corner point, and the surveyor went to the wrong white oak tree when the fence was built.
    

5. Who do I call when it is time to go to the closing?
   A closing has been likened to the rowing of a boat by nine people, four on one side and five on the other, which can result in the boat going around in circles unless someone coordinates it. There are letters from the tax collector and the municipality to obtain. There are plumbing dye tests to be performed. Where does the occupancy permit come from? If the seller is the executor of an estate, what about inheritance taxes? Where will the closing be held? Who will handle the recording of the deed? Who will handle the money? Who will pay off the seller’s mortgage and get the satisfaction prepared, signed and recorded?
    

6. As a buyer of real estate, whom should I ask to search the title?
   Here, as in all of the seller-related questions above, there is ample need for the services of a seasoned professional. Just the process of searching a title can be daunting. It takes experienced title abstractors many hours to search one title.
    

7. How do I get a mortgage?
   There are mortgage professionals out there seeking your business, but if you want to know which ones are reputable and which ones might not be, you might want to do a little digging.
    

8. Who prepares all of the papers for the closing?
   Some are prepared by the lender and most are prepared by the people who will conduct your closing. Since the house is the single largest purchase that you will make, do you want to run the risk that the job is not done professionally?
    

9. How do I get the deed and mortgage recorded?
   Knowing what documents get recorded where, and knowing the sequence in which they are recorded is much harder than it might seem. And there are complicated calculations of transfer taxes and recording costs, too.
    

10. Who guarantees that my title is clear?
    Title insurance is not for the weak-kneed. It is something that only a title insurance agent licensed by the Commonwealth of Pennsylvania Insurance Department can issue, so you need to ask if your provider has this type of license.
    By now, I hope that you have figured out who to call. If not, go back to the top and start again.
     

Christopher M. Abernethy has been practicing law in Hampton Township since 1976. He focuses on elder law, which includes wills, trusts, powers of attorney, living wills and probate matters. He also is proficient in all aspects of real estate law and business law. He is a member of the National Association of Elder Law Attorneys and the AARP Legal Services Network. He can be reached at 412-486-6624 or by email at cabernethy@aaylaw.com.