Book spells out real estate complexities

By Stephen Anderson

A general practitioner who comes into possession of “From Handshake to Closing: The Role of the Commercial Real Estate Lawyer,” and studies it, might exclaim: “Wow! I didn’t know real estate law was so complicated.”

That’s a good thing. When the long-time client of a lawyer decides to buy or sell a piece of real property, that practitioner would do well to seek the counsel of an experienced real estate lawyer.

“From Handshake to Closing” is the work of Chicago attorney Sidney G. Saltz, who notes in the preface that he lacks “the training or experience in business to enable me to evaluate the potential benefits or detriments of a transaction.”

Saltz, who has practiced general real estate law for 40 years, calls his only shortcoming “both a curse and a blessing.”

As he explains it, “I am not in a position to consult with and advise the client on its business decisions, but neither do I try to substitute my judgment for the client’s or try to affect the progress of a deal because of a difference of opinion with the client.”

Published this year by the American Bar Association Section of Real Property, Trust and Estate Law, the 125-page paperback is an easy, thorough and worthwhile read.

The essentials of completing a real estate deal successfully are spelled out in sections on Pre-Documentation Documents, Documenting the Transaction, Reviewing and Analyzing Documents, Negotiating, Finishing Up, What Else? and Preparing for Closing.

Pointing out how complex the practice has become over the years, Saltz recalls that in 1966, a residential deal required only four documents: a deed, a bill of sale, an affidavit of title, and a closing statement.

His intention and hope is that “From Handshake to Closing” will help lawyers avoid “those pitfalls that condemn them to be what all clients … consider the worst kind of lawyer – the DEAL KILLER.”

In the Finishing Up section, Saltz stresses consideration of preparing a diary and closing checklist – materials that he says usually are prepared after execution.

In his experience, however, they are helpful before a deal is signed, because they allow the lawyer to determine whether the document really works.

“Can you, based on what is contained in the document, map out the timing of what must be done, and has the document covered everything that is needed for the closing?” he asks.

The section on What Else? consists of both a step-by-step Due Diligence Checklist and a timely review of title and survey issues.

“Think for yourself,” Saltz urges in conclusion. Don’t rely on canned forms as more than helpful aids, and don’t hesitate to take advice from colleagues.

“But is it you and you alone who (has) the responsibility to give your client the best representation you can…

“Converting that handshake at the beginning of the deal into a heartfelt handshake at the closing is what it is all about.”

A 1962 graduate of the Yale Law School and member of Phi Beta Kappa, Sidney Saltz joined Jenner & Block and eventually moved from antitrust and general litigation into real estate law. He practiced with Barnes & Thornburg from 1999 until 2005, when he became senior counsel at Holland & Knight.

Copies of his book may be obtained from the ABA Service Center by calling (800) 285-2221.