When do I need to specify instructions for escrow when selling a house?
July 25, 2024 8:40 AM Subscribe
I'm selling a house as a co-owner. The other co-owner is my brother, and we don't really get along for various reasons. The house is kind of a family house, so my name is on the title, and I should get half the proceeds. So how does that work? When/How do I need to make sure escrow knows to split the funds so it doesn't all go into my brother's bank account? First time seller...
I 1000% agree with number9dream about contacting a real estate lawyer. But if you are purely curious about real estate law you might find this to be an interesting read. I have bought and sold several homes over my life time and used a lawyer each time.
posted by forthright at 11:22 AM on July 25, 2024 [2 favorites]
posted by forthright at 11:22 AM on July 25, 2024 [2 favorites]
Thirding you should contact a lawyer. Not JUST to ask them this question. You will want and need a lawyer to represent you in any real estate transaction, and this question should be entirely within the typical services and advice they provide as part of the home sale.
Get a few recommendations from your local neighborhood Facebook group or similar -- or from your real estate broker if you have one. The lawyer should be able to quote you a flat fee for handling a home closing.
If there's any possible disagreement between you and brother about the percentage of the sale funds you are each due, you might want separate lawyers. But, your first lawyer can advise on that.
posted by hovey at 11:45 AM on July 25, 2024 [4 favorites]
Get a few recommendations from your local neighborhood Facebook group or similar -- or from your real estate broker if you have one. The lawyer should be able to quote you a flat fee for handling a home closing.
If there's any possible disagreement between you and brother about the percentage of the sale funds you are each due, you might want separate lawyers. But, your first lawyer can advise on that.
posted by hovey at 11:45 AM on July 25, 2024 [4 favorites]
You should be able to indicate in your paperwork for the company that handles the closing that you'd like to split the proceeds across two accounts. This should be very routine for them to set up. Your realtor should be able to help wrangle this with them if need be.
posted by limeonaire at 1:16 PM on July 25, 2024 [1 favorite]
posted by limeonaire at 1:16 PM on July 25, 2024 [1 favorite]
I have the impression that it is more common to use a lawyer for real estate purchases in some locations than others. In some places, a real estate agent can handle much of what a lawyer would do, in other cases a lawyer is necessary. So maybe ask around among anyone in the location where the house is being sold what the common practice would be and whether this is something you'd need a lawyer for.
posted by knownfossils at 2:33 PM on July 25, 2024 [1 favorite]
posted by knownfossils at 2:33 PM on July 25, 2024 [1 favorite]
If you are working with a realtor, or a title company, the title company in our state usually has a lawyer embedded within the title transfer process. If you (and maybe your sibling, that’s unclear) were added to the title recently, you might check with the professionals that handled the re-titling at that time. Family home sales can bring up all sorts of deep feelings so you may have to lawyer up anyway.
posted by childofTethys at 4:40 PM on July 25, 2024 [1 favorite]
posted by childofTethys at 4:40 PM on July 25, 2024 [1 favorite]
Best answer: Who is handling the escrow? A lawyer or a title company? This is a regional thing. In California, home sales happen using standard legal forms plus a title company and it is very rare to have a lawyer involved.
If it is a title company, I would call them, talk to whoever is handling your sale ask them the processes.
If you aren't sure, you should be able to ask your real estate agent. They should know who is handling the escrow and how to get in touch with them.
If the original contract to sell the house did not involve a lawyer or a real estate agent, then I would get in touch with a lawyer asap to make sure everything is being done the way it needs to be.
posted by metahawk at 11:15 PM on July 25, 2024 [1 favorite]
If it is a title company, I would call them, talk to whoever is handling your sale ask them the processes.
If you aren't sure, you should be able to ask your real estate agent. They should know who is handling the escrow and how to get in touch with them.
If the original contract to sell the house did not involve a lawyer or a real estate agent, then I would get in touch with a lawyer asap to make sure everything is being done the way it needs to be.
posted by metahawk at 11:15 PM on July 25, 2024 [1 favorite]
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posted by number9dream at 9:24 AM on July 25, 2024 [11 favorites]