All Forum Posts by: Mike Paters

Originally posted by @Caroline Gerardo:

Texas doesn't require attorney for closing. My 98% guess is you signed something by email and they 'gotcha even though you say they are incompetent they will bill you or put a lien on title. Do you worry they skipped disclosures, make errors in your note agreement and or flub up your transaction if they really are that bad?    Also sounds like inexperienced or no agents to guide the process?  How did you vet the buyer for you to carry paper that they cannot secure in open market?

Thanks for bringing up some very important points...
I have fair idea of what various documents should contain, the important clauses etc. and can review legal docs to bring up potential issues - have done this for other transactions.
I am guessing some of this problem is due to the office staff/assistants - I have interacted with the attorney briefly on few topics and they seem to know their stuff. I was able to talk to the attorney yesterday asking about what was holding up - they told me they have been getting an unprecedented load of contracts etc. more than what they are used to handle. So I am willing to be little bit more patient and see if the issue was workload + office staff.

Re. agent - I think it may have helped, but I was in situation where the business property was not very marketable and would have required a long closing time. Besides this business property has a small market that I know well as we have been running it for some time. So I decided to directly work with that small market, vetting who can run the business etc.

Originally posted by @Caroline Gerardo:

Attorneys are $$$$ expensive. What did you sign with them? Does your agreement have price and time frame? Cancelling they have the right to charge you full boat in TX, a yacht. What is cancellation cost?

I can recommend someone who can get a commercial deal written up and closed in ten days. What's the real story with buyer insurance? What will you do if you are forced to pay this first mess and a second?  

Thanks for offering referral. I may ask for it if I decide to go that route.

I did not sign up any attorney representation with the Real Estate Attorney, so no cancellation cost involved. The sales contract has the name of attorney on it - only because I added it myself - they did not put it on it even though they are the ones who create it:) Speaks of their incompetence.

The buyer insurance was delayed because this is first time buyer who did not do ground work on different types of insurance needed for this location(windstorm, flood, property, liability). It took them couple more weeks to get some quotes and finalized. But that part is now done and there is an insurance binder. Only thing that is holding up is this loan/deed docs from attorney who keeps saying it will come "today".

I am in a very strange situation and would love to get some suggestions from forum members.

This is my first time selling a commercial property in TX Coastal Bend. I was initially planning to use a local attorney & a separate closing company. On BiggerPockets - I found suggestion for a real estate attorney who also provided Title/Closing services. So I decided to engage with this attorney referred on BiggerPockets assuming if someone here referred, it must be legit. I asked them to draw contract, create deed/loan(seller finance) docs, title insurance. I was hoping this should go smooth as everything was done at same law firm.

My experience with this attorney and staff has been very frustrating. They have been incompetent and unprofessional. I had to do thorough review work of contract to ensure the contract was valid. And the title/closing agent really does no follow-ups.

We had some delays with closing due to the buyer not able to get insurance policies underwritten in time. I have been following up with attorney since last 4 weeks to complete the loan docs (this is seller financing deal), and prepare closing statement. Initially they were just not responding(beginning of year) - and now they keep telling me it will be ready "today" - its going on for 2 weeks and now it has gotten to be downright frustrating because we both buyer and seller have so many other things held up due to this unprofessional behavior. I have been calling their office everyday, emails etc. - they respond but its like the docs are coming...and they never come.

I then checked their BBB ratings(should have done that at beginning rather than relying on BiggerPockets recommendation) - and they are terrible with similar complaints. Their twitter account is suspended....

I understand things are bit busy in TX right now, but knowing these are pretty boilerplate docs - what else could be going on?

Anyone know if I can engage another attorney & closing company to continue with my life without being held hostage? We have standard TREC contract, and buyer has deposited EMD in escrow. Title commitment has been issued. No other fees have been paid.

I do not want to create more issues at this stage, but looks like I am being ignored. Not sure how to get them to follow-through on their agreed work.

Thanks