In Delaware, the Buyer chooses the settlement attorney and the attorney represents the Buyer, not the Seller. If the Seller wishes to retain their own counsel, they may do so, but you should not give up your right to representation by your own attorney
Use your own Attorney
In new construction, it has become common practice for some builders to form a relationship with one specific law firm. They try to get anyone buying one of their homes to use that law firm for their settlements. Occasionally, there appears to be a somewhat lower rate for some services, but at what cost?
What is it worth to be represented by someone with loyalty to only one party – you, the Buyer? If you plan to live in this new home for 20 or 30 years, what is the impact of a few hundred dollars on your future?
Do not use the builder’s mortgage company
The same is true of mortgage companies, but that can be a more costly proposition until the government finally changes the laws. The large national builders have their own mortgage company divisions and many require you to use their in-house lender in order to take advantage of any special pricing or incentives. For example, if the builder is offering “50% off upgrades”, you can only receive that discount if you either pay cash or use the builder’s own lender to finance your purchase. Guess that tells you how much profit there is in mortgage lending, even at today’s low rates. With typical 30 year financing on new homes, even a small profit on a community full of financed homes adds up over time.
The decision is yours, but I always recommend that my Buyer clients
• Use a Buyer Agent who represents you, not the Seller or the Builder
• Use an Attorney who represents them not the Seller or Builder
• Use a Mortgage Company with no conflicting loyalties to the Seller or Builder
What’s the difference when your Buyer Agent recommends an attorney or a mortgage company? All the difference in the world because a Buyer Agent represents you, not the Seller or the Builder