Should You Hire a Real Estate Attorney When You Buy or Sell a House?
Real estate transactions can be difficult to decipher, and simple mistakes can lead to costly implications. Usually, there’s a significant amount of money involved, so it’s important to get all the help you can get.
Hiring a real estate attorney is vital for ensuring the entire process goes smoothly. Such an attorney knows the ins and outs of property law and will help to protect your interests as you make a big financial move.
Getting professional help from an attorney that understands all the legalities about real estate will make the process of buying or selling property less stressful and straightforward.
Read the following guide to learn if you should hire a real estate attorney.
1. They Don’t Have a Vested Interest in the Property in Question
A real estate attorney has no incentives to increase or decrease the price of the property.
When dealing with an attorney, you have to agree about the fee which will be paid directly to them irrespective of whether the deal is sealed or not.
This means they have no motivation to close a deal that isn’t on your favor. They are only motivated by the fact that you’re their client.
You’re free to change your mind any time about selling your property, and that won’t affect your representation.
2. They Can Assist in Choosing Potential Properties
You can seek advice from an experienced attorney on where to buy properties in your city. They will help in selecting potential properties and review any contract that your mortgage or real estate broker asks you to sign.
An attorney negotiates for you and drafts the contract of sale to make sure your interests are safeguarded.
If you’re a seller, your attorney can market your property as well. They can also work with real estate agents to facilitate the sale of your property.
3. They Help with Conducting a Title Search
Does the person or institution selling the property to you have the legal rights? The only to find out is by conducting a title search. The attorney conducts the title search and ensures that no encumbrances that will affect the transaction.
Once they discover an issue with the title of the property, they advise you on how to proceed from that point.
4. They Have the Expertise to Deal with Complex Contracts
When you’re buying a property from entities such as corporations, partnerships or trusts, both the negotiations and contracts are likely to be more complex.
You will need someone with knowledge on these types of contracts who will ensure the contract is legally binding.
5. They Can Help to Address Particular Stipulations
When buying a home, it’s possible to overlook certain stipulations. For example, a covenant or easement on a house can affect the way the property is sold.
The unexpected stipulations are likely to lower the price of a house. Hire a lawyer to take advantage of such stipulations.
6. You Can Easily Modify Your Loans
If you’re selling your property and you want to modify your loans, real estate attorneys can be of great help. These lawyers work directly with lenders and other parties and can quickly speed up the modification process.
Hiring a lawyer gives the seller or buyer a big advantage by minimizing the need for external help.
7. They Offer a Professional Contract Review
Reviewing the purchase contract can be intense since most of these documents are dense and packed with legal jargon. You might end up feeling bored reading through all details and end up signing before grasping the content.
If you have hired an attorney, they will ensure that you grasp all the content and advise you to avoid the contract if some of the contents are detrimental.
8. They Play a Useful Role When the Property Has Physical Damage
When you’re about to buy a property, but a building inspector points out some defects such as electrical issues, do you abandon your mission or proceed?
You need to find an experienced real estate lawyer who can negotiate credits or repairs for these issues.
After the negotiation, the lawyer will draft an agreement that resolves these issues to your satisfaction.
9. You Need an Attorney for Consultation Purposes
What of a situation where you are buying or selling a property from someone you trust 100 percent? Will you still need a lawyer?
In this case, a lawyer may not be needed for negotiation purposes, but you may have to consult a lawyer to understand an issue such as tax consequences of the purchase or sale.
10. They Will Handle All the Paperwork for You
Real estate has its fair share of ups and downs, but if there’s one factor that has remained constant over the years is the paperwork involved before money and title change hands.
You need an expert in your corner to help you understand the entire process and safeguard your interest.
11. A Real Estate Attorney Can Help You Achieve a Proper Closing
There are important steps that occur at the end of a real estate purchase deal. You need to check closing documents such as the deed and ensure once you finish paying for the property, the title is passed to you.
A real estate attorney facilitates this process and also ensures there is a closing statement that records the transaction between you and the other party.
If you intend to buy or sell a property, look for an experienced attorney who will help you have a smooth transaction.
You can learn more about selling your house here.
Is Hiring a Real Estate Attorney an Unnecessary Expense?
Some people think that hiring a real estate attorney is an unnecessary expense when it comes to buying or selling a property.
The legal fees are not as high as you think, but it’s dependent on the complexity of the transaction and whether selling or buying a property.
Want to find out the legal difference between a real estate agent and a broker? Check out our blog.