do i need to hire an attorney when buying a house

Key Takeaways

• It's often worth it to spend money on a real estate attorney, but it is not legally required in most states.
• Attorneys make sure all paperwork is properly drawn up and filed with the authorities.
• Attorneys do title searches and can negotiate should a search uncover a problem.

Full Answer

Should you hire a real estate attorney when buying or selling?

If you’re buying or selling real estate, you may have heard you should hire a real estate attorney. “Should” is a squishy term, though. Do you need to hire a real estate attorney at all?

Do you need an attorney to buy a house in Atlanta?

Bruce Ailion, a real estate agent and attorney with RE/MAX Town and Country in Atlanta, said that most real estate transactions today, and most mortgage types, are fairly vanilla. In such transactions, buyers typically don't need to pay for an attorney to represent them, Ailion said.

Can the buyer and seller of a house have separate attorneys?

However, the buyer and seller are allowed to hire separate attorneys from the same law firm. What does a real estate attorney do for the buyer and seller? Hiring a real estate attorney is critical in ensuring that the legal transfer of property goes smoothly. Whether you’re the buyer or seller will determine their primary objectives and purpose.

Do you need an attorney to buy a house in California?

In a home purchase transaction, both the buyer and seller can hire an attorney to represent their interests during the process. Or, in the case where an attorney is overseeing a closing where the home is being purchased with a mortgage loan, the attorney may actually represent the mortgage lender. Find out what you can afford.

Is a real estate attorney required in Illinois?

Some states mandate that home buyers hire an attorney for the real estate closing while others stay silent on the matter. Illinois is one of the states that does require you to have a lawyer review your purchase agreement before finalizing your home purchase.

Do you need a lawyer to buy a house in NJ?

New Jersey law does not require the use of an attorney for real estate transactions. However, many state residents still decide to engage legal advice when buying or selling a home. Review the common situations when a real estate attorney can assist with a New Jersey sale or purchase.

Do you need a real estate attorney in Massachusetts?

In Massachusetts, the practice of closing transactions for buyers and sellers when there is a home loan is considered the practice of law; therefore, the settlement agent for any real estate closing involving a lender must be conducted by a licensed attorney.

Does Pa require an attorney at closing?

The real estate closing process seems relatively straightforward; however, you still will likely want an attorney to guide you should issues arise. Unlike some states, Pennsylvania does not require buyers to involve a lawyer in their home buying process.

How much does a real estate attorney cost NJ?

between $1,500 and $2,500Generally, attorneys charge between $1,500 and $2,500 in fees, but it all depends on the type of sale and the types of houses in New Jersey. State, city and county transfer taxes. It varies depending on the sale price, but is usually 1%. If you're a disabled veteran or age 62 or older, it could be 0.05%.

What is the process of buying a house in NJ?

Steps in the New Jersey Home Buying ProcessEstablish your budget and research the market.Research and choose a type of home loan.Get pre-approved by a lender.Find an experienced New Jersey real estate agent.Begin the house hunting process.Make an offer and, if necessary, negotiate with the seller.More items...

How do I buy a house without a Realtor in PA?

How To Buy A House Without A REALTOR®Step 1: Apply For A Mortgage. ... Step 2: Research The Neighborhood. ... Step 3: Find A Property. ... Step 4: Ask For A Seller's Disclosure. ... Step 5: Make An Offer. ... Step 6: Hire A Lawyer And Home Inspector. ... Step 7: Negotiate. ... Step 8: Finalize Home Financing And Closing.

Who pays for title insurance in PA?

The buyerThe buyer usually pays title insurance policy in Pennsylvania, and the buyer has the legal right to select the title company. Most home buyers take the real estate agent's recommendations on who to use. Some real estate agents have “Affiliated Business Arrangements” with specific title companies.

What do I need to know about buying a house in PA?

8 Important Things to Know Before Buying a Home in PennsylvaniaUnderstand Your Finances. ... Find a Good Real Estate Agent. ... Get Pre-Approved for a Mortgage. ... Know the Seller Disclosure Statement Requirements. ... Have a Home Inspection Done. ... Complete a Real Estate Purchases Agreement. ... Have a Title Insurance Policy.More items...•

How long does a closing take in NJ?

30 to 45 daysIn New Jersey, the closing is often scheduled for 30 to 45 days after the agreement has been signed. But the timeline can vary due to a number of factors. Do the buyer and seller both attend? Closing procedures can vary slightly from state-to-state.

How are closing costs calculated in NJ?

For home buyers, closing costs in New Jersey are roughly 2-5% of the home's purchase price. The exact number can go up or down depending on many factors - such as whether you have to pay for an HOA or PMI, as well as factors like your home's size (which can impact the cost of the inspection, etc).

What do real estate lawyers do?

Commercial property (or real estate) lawyers act for a variety of domestic and international clients – including investors and developers, governments, landowners and public sector bodies – on a wide range of transactions, involving everything from offices to greenfield and retail developments, infrastructure projects ...

At what age can I buy a house in NJ?

In the United States, it is legal to buy a house without a co-signer at the age of majority, which is 18 years old in most states. Reaching the age of majority empowers individuals to sign legal agreements and complete real estate transactions.

What happens when you hire a lawyer?

When you hire a lawyer, your lawyer only works for you and will make sure your interests are protected. 4. There is a problem with the property or the deal. A lawyer can help you resolve some of the tougher, more technical issues that might come up.

What to do if you are buying a home and have legal questions?

If you're buying or selling your home and have legal questions, check out our personal legal plan and talk to an independent attorney in your state .

What to do if someone threatens to sue you?

You may also need legal advice if the property is involved in a foreclosure or other litigation, or if you get into a dispute with the buyer or seller. Always talk to a lawyer if someone threatens to sue you. 5. You are concerned about the tax consequences.

What can a lawyer do for you?

A lawyer can help you resolve some of the tougher, more technical issues that might come up. These may include easements, rights of way, boundary disputes, or other issues involving the property the house is on. You may also need legal advice if the property is involved in a foreclosure or other litigation, or if you get into a dispute with the buyer or seller. Always talk to a lawyer if someone threatens to sue you.

What is a "for sale by owner" deal?

A “for sale by owner" deal can save you money on real estate commissions, but you still need someone to prepare the purchase agreement, deed, and other documents. A lawyer can get your paperwork in order, ensure the title is good, and help you with the fine points of negotiating the transaction. 3.

What happens if you make an offer on a house and aren't represented by a real estate agent?

If you make an offer on a house and aren't represented by a real estate agent, the seller's agent may offer to take care of everything. This is known as “dual agency," and it can cause problems because one agent cannot truly look out for the best interests of both you and the seller.

Can you deduct home office expenses if you are a seller?

If you are the seller, you could be liable for capital gains tax if the home has increased in value. If you are the buyer, you may be able to deduct mortgage interest, home office expenses, and some or all of your property tax.

Why do you need a lawyer for a mortgage?

Furthermore, attorneys can secure proof that judgments or liens have been resolved. That is important if you ever plan to obtain a mortgage or loan against the property.

What do attorneys do in real estate?

Attorneys make sure all paperwork is properly drawn up and filed with the authorities. Attorneys do title searches and can negotiate should a search uncover a problem. Ideally, buyers and sellers in a real estate deal should be represented by lawyers to safeguard their rights and watch their interests.

Why do attorneys do title searches?

The title search is essential because it reveals whether the seller has the legal right to sell the property.

Why is legal counsel important?

Having legal counsel makes good business sense because of the complexities that come with real estate transactions. Experienced real estate attorneys can help to protect your interests. They ensure that your transaction adheres to the applicable rules of your state and municipality.

How long do you have to review a real estate contract?

In many states, the buyer and the seller have three days to review a real estate contract before it becomes legally binding. Some buyers and sellers aren't aware of this. A lawyer will make the client aware of it, review the contract for legal glitches, make necessary changes, and insert useful contingencies .

What is a contract attorney?

An attorney understands these different types of business arrangements and their legal boundaries within your state's law. The attorney will ensure that the contract is consistent with the law and the partnership's, trust's, or corporation's charter agreements.

What happens if a business is not registered on wetlands?

If it is a commercial transaction, and the business is not correctly registered at the state level, the business might be forced to close.

Why do you need an attorney for a home purchase?

Here are a few reasons you might need or want an attorney to be part of your home buying team: State or lender requirement: Every state has slightly different laws regarding real estate transactions, and some states consider certain actions that are part of the process to be “practicing law.”. These regulations are often meant to prevent real ...

How to find a real estate lawyer?

Utilize your state’s Bar association directory: Your state Bar association’s website can help you locate lawyers in your area who practice real estate law. Use the American Bar Association’s directory to help you find your state’s website.

What Is A Real Estate Attorney?

A real estate attorney, also known as a real estate lawyer, is someone who is licensed to practice real estate law, meaning they have the knowledge and experience to advise parties involved in a real estate transaction, such as a home sale or short sale.

How Much Does A Real Estate Attorney Cost?

How much you’ll spend paying your real estate attorney (or attorneys) will depend on what services they’ve provided for you and who is responsible for that particular closing cost. If your mortgage lender requires an attorney to be present at closing, whether the buyer or seller covers the cost of the closing attorney will depend on how your real estate contract has been negotiated.

How to find out about an attorney?

Use an online legal review site: There are many online review websites that will give you information on attorneys in your area, including their specialties, fee structures and any reviews left by former clients.

Who is in charge of closing a home?

In some cases, a real estate attorney is also the person who’ll be in charge of your closing. In a home purchase transaction, both the buyer and seller can hire an attorney to represent their interests during the process. Or, in the case where an attorney is overseeing a closing where the home is being purchased with a mortgage loan, ...

What to ask if someone recently purchased a home?

Ask for recommendations from friends and family: If someone in your social circle recently purchased or sold a home and had an attorney, you might consider asking them who they used and what their experience was like.

What does a closing attorney do?

This means that the attorney handles the paperwork to get the deal closed and may also handle the issuance of the owner’s title insurance policy for the buyer. The closing attorney does not get involved in disputes between the parties and does not make a determination on whether one party is right or wrong.

What does "buyer beware" mean in real estate?

There is a saying in real estate law from Latin: caveat emptor, or buyer beware. You are on your own to buy the home and it’s up to you to know what to look for and what to ask for.

Who to hire to do a walk through?

You may want to hire a professional home inspector to do the final walk-through with you and help you create the punch list. And you may want to hire an attorney to see that the list is attached to the closing documents correctly, and if there is a major fix that needs to happen, some money is held back in escrow to make sure the builder complies in a timely way.

Does hiring a lawyer cost money?

Of course, if you hire a lawyer, it will cost you money, and there is a balance between how much you should pay and the risk of having something happen and then paying to fix it down the line. (Benjamin C Tankersley for The Washington Post)

Is it confusing to buy a home?

We understand that the process is confusing. That’s okay, too. Most home buyers are overwhelmed with the whole home-buying process. You have to buy your new home and then make myriad decisions in short order, including choosing movers, deciding whether you need to buy furniture, furnishings and other items for the new home, fixing or renovating anything before moving in, remembering to set up utilities, cable and Internet packages, and more.

Do all home buyers have to have an attorney when closing a deal?

Let’s start at the top: You should know that real estate attorneys are customarily used to closing real estate deals in some parts of the country and not others, but Sam would like to see all home buyers have an attorney represent their interests when they close on a home. That means you, the buyer or seller, has to actively engage a real estate attorney to represent your interests only in the transaction.

Why do you need a real estate attorney?

Simplify Real Estate Related Laws. Every state has different laws relating to real estate. A real estate lawyer will guide you through the complex real estate laws. So, you can avoid legal problems related to a real estate purchase.

What is a real estate lawyer?

A real estate lawyer will guide you through the complex real estate laws. So, you can avoid legal problems related to a real estate purchase. An experienced real estate attorney will also help you in preparing purchase documents that conform to legal requirements.

What is the role of an intermediary in real estate?

Perform the Role of an Intermediary. A real estate professional can also perform the role of an intermediary in a real estate transaction. The legal attorney can expertly negotiate with the seller on your behalf. Also, the attorney will hold your deposit until the home sale deal is closed.

What happens if a seller is half owner of a house?

Legal problems can arise if the seller is half owner of the house, and sells without getting approval from the other owner. A real estate agent will provide expert legal help to avoid many other potential problems including border disputes, tax issues, oil rights, and more.

Do you have to hire a lawyer before buying a house?

Also, the attorney will hold your deposit until the home sale deal is closed. The above benefits may have revealed to you why it’s important to hire a real estate attorney before buying a house. An experienced lawyer will look at all real estate related legal matters to ensure that you don’t face any costly legal battles after buying the property.

Is it a good idea to hire a real estate attorney?

Any mistake when purchasing a home can cause a great frustration. That’s why it’s always a good idea to hire an experienced real estate attorney before making a purchase.

How much does a real estate attorney cost?

How much will this cost? That depends. Chase said that buyers can expect to pay from $450 to $650 for the services of an attorney during their home-buying process, including the time that the attorney spends at the closing table. Chase said that her office charges buyers $495 for a real estate attorney who will represent them during the buying process.

What does a closing attorney do?

At closing, this professional's job is to make sure that the loan documents you sign are prepared accurately and properly reflect the fees that you and the seller agreed to pay. Your attorney will also answer any questions you have during the closing and will negotiate on your behalf if last-minute financing problems pop up or if the sellers attempt to make changes with which you don't agree.

What happens if you don't pay taxes on your home?

Real estate attorneys also study title documents to make sure that other individuals or governmental bodies don't have ownership stakes in the home you want to buy. If the sellers of your home failed to pay all their property taxes, your local government might have a lien against the home. Your attorney will search title documents to make sure ...

What to do after a home inspection?

Before closing, a real estate attorney can help you negotiate after the home inspection, an event that happens after you and the seller agree on a contract but before mortgage closing. If the inspector finds serious problems with the home you want to buy, you can work with your real estate attorney to negotiate repairs that the sellers must complete before the home sale can close. Your attorney might also negotiate a reduction in the home's sales price or a credit that you'll receive upon closing to pay for the repairs yourself.

Does Chase work in real estate?

Real estate sales are handled differently in different states and jurisdictions. In the Chicago area where Chase works, for instance, real estate contracts come with financing deadlines built in. Chase, then, has to monitor these for her clients to make sure that these deadlines don't pass.

Who takes over after you and the sellers agree on a sales price?

An attorney will generally take over after you and the sellers agree on a sales price and each sign a real estate contract. Your real estate agent represents you through the negotiation process until this step happens.

Can a FHA loan be altered?

Home sales involving FHA, VA, USDA, Fannie Mae or Freddie Mac financing feature loan documents that can't even be altered, Ailion said.

Contracts

Title Searches

Property Transfers

Filings

Sellers Need Attorneys Too

• If you're selling a property, having an attorney represent your interests isn't a legal requirement in most states. However, not having one increases your chances of being sued by the opposing party for failure to disclose certain information. That is because an attorney must review the home inspection and disclose relevant factsabout the property ...

See more on investopedia.com

Dealing with Discrimination

The Bottom Line