Hire attorney before your house hunt gets serious

Once you're beyond the "just looking" stage of purchasing a home- and before you get emotionally attached to your "dream house" - youneed to hire a real estate attorney.

With so many players and so many competing interests, it'scritical to engage counsel before you proceed into what will mostassuredly be a highly complicated transaction.

Once you've selected your attorney, you can ensure a smoothrelationship by taking full advantage of the first visit: Visit the attorney before a contract is signed.

You will be in a much better position to negotiate as either abuyer or seller if you hire counsel before you sign the contract.While many contracts have attorney approval riders, it is not aseffective as bringing in counsel before you sign that contract. Bring the names and phone numbers of the other parties involved.

These usually include the real estate sales person, a lender, anappraiser, a home inspector, a title insurance company rep and, ifit's new construction, a builder. Bring all pertinent documents for the attorney to review.

If you are selling, this will include your title insurancepolicy and copies of your original deed and mortgage. Buyers shouldtake along the information about the home they wish to purchase. Discuss the services the attorney will provide.

These can include negotiating the specific terms of thecontract, obtaining a title search, explaining the income, estate andgift-tax consequences as well as the property-tax structure. Theattorney should help you evaluate financial options and explain theterms of your loan. They should evaluate all the documents, such asthe deed, mortgage, closing statement and seller disclosurestatement. The attorney will be able to inform you of any facts thataffect you.

A lawyer's expertise is helpful at every stage of thehome-buying process, but it is particularly crucial at the closing.The attorney will explain each document, review the closing statementand tell the buyer exactly where the money is going, as well asnegotiate any last-minute changes or requests. Determine the fee structure.

Most attorneys charge a fixed fee to handle a real estateclosing. The fee can range from $400 to $700.

They might also be willing to charge on an hourly basis or acombined fixed and hourly fee. You should ask whether there is anupfront payment that should be made before work commences, how billswill be presented and whether the statements will be sent on amonthly basis or some other method. Make a list of questions.

To maximize the time spent with your attorney, come preparedwith a list of questions and be sure to take notes as you and yourattorney discuss the answers.

There are so many details surrounding the purchase and sale ofreal estate that consumers need to take responsibility for keepingtrack of all the necessary information.

If a client is prepared, realistic and has a clear understandingabout fees, the first visit to an attorney should be productive. Peter J. Birnbaum is president and chief executive officer ofAttorney's Title Guaranty Fund, Inc., a lawyer-based service thatprovides title insurance to homeowners and lenders. ATG has officesin Chicago, Oakbrook Terrace, Mount Prospect and Naperville.