do i need to hire an attorney when buying a house or just use a title company?

Unlike many other states, Florida does not require the use of an attorney during a real estate transaction. Buyers and sellers have the choice of using an attorney or a title company to handle the closing on their real estate transaction.

Full Answer

Why do you need an attorney when selling a house?

What does a real estate attorney do, anyway?

What is the education required for real estate agents?

Which states require a real estate attorney to be present at closing?

Who attends closing with real estate agent?

Does realtor.com make commissions?

See 3 more

About this website

Does Massachusetts require a real estate attorney?

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.

Is Florida a title or attorney state?

Some states, such as Florida, are “Title Company States” that do not require an attorney to close loans or purchases as long as the closing includes title insurance.

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.

Is Rhode Island an attorney state for real estate?

Several states have laws on the books mandating the physical presence of an attorney or other types of involvement at real estate closings, including: Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New ...

Can a title company do a closing in Florida?

In most states a title company cannot conduct a closing. Florida attorneys act as title underwriters and can provide both legal representation and title insurance. Florida buyers can also forego legal representation and obtain title insurance at closing through a title company or agency.

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

Under Florida law, a buyer doesn't need a lawyer to complete a real estate transaction. However, retaining an attorney at the beginning of the process often prevents a buyer from taking legal action after the deal is done.

Do I need a lawyer to make an offer on a house?

The Sale and Purchase Agreement can be a daunting document for first home buyers. That is why we always strongly recommend first home buyers seek independent legal advice from a lawyer before making an offer.

Who picks the title company in Illinois?

the buyerThe answer to this question is YES. The accepted practice in real estate industry is for the buyer to submit an offer to purchase a property either alone or through an agent. The buyer will then select a title company.

Is Illinois an attorney closing state?

Illinois: Real estate attorneys are not essential for closing but may be advised by your real estate agent; in Chicago, however, attorneys typically review and approve title documents. Indiana: Real estate attorneys are not essential for closing, but may be advised by your real estate agent.

Do you need an attorney to buy a house in Rhode Island?

In Rhode Island it's required for a real estate attorney to be part of every home sale. While your agent can make recommendations, remember you get to make the final decision.

Who pays transfer tax in Rhode Island?

the sellerWhen a property is sold in Rhode Island for over $100 a transfer tax must be paid, usually by the seller (RIGL 44-25-1). Proof of payment is stamped on the deed so the recording clerk can see it was paid.

Do you need an attorney 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.

Is Florida a title state for real estate?

In Florida, the borrowers that engage in a mortgage are the legal title holders of that property. This is because Florida is a state that practices lien theory, as opposed to title theory, that is used in other states. In other states, the lender holds the actual legal title.

Is Florida a title holding state?

Florida is one of the states that allows lenders to keep hold of the title until the end of the loan, when you will own the vehicle outright. You will then receive the title.

Is Florida an escrow state?

The so-called escrow states are California, Washington, Oregon, Texas, Nevada, New Mexico and Arizona.

How do I get the title to my house in Florida?

If the deed is lost or misplaced and the homeowner needs the original document, a property owner can simply request, from the County recorder, a certified copy of the recorded document either in-person or by mail. In most instances, a certified copy has the same legal significance as the original document.

6 Reasons You Need a Real Estate Lawyer When Buying or ... - Texas Legal

Buying a house? You’ve probably got a real estate agent. It’s likely you shopped around for a bank or mortgage lender. You’ll get referrals for title companies and inspectors.

Do I Need a Real Estate Lawyer to Sell My House?

When do I need a lawyer to sell my house? You need a real estate lawyer if you’re selling in a state where it’s required by law. Each state that requires sellers to lawyer up does so for different reasons, but the ultimate aim for all is to protect the integrity of home sales in that state.

Should You Hire an Attorney When You Buy or Sell a Home?

Buying or selling a home can be an emotional roller coaster, and the negotiations and paperwork can leave you feeling unsure and on edge. Fortunately, most home sales follow a pretty standard procedure, and real estate agents, brokers, and title and escrow companies generally do a good job of guiding you through the process and making sure everything is in order.

For Sale by Owner: Do You Need an Attorney? - Financial Web

If your house is going to be for sale by owner, you might want to consider using an attorney. Although hiring an attorney for this transaction is not necessarily required, doing so can benefit you in a number of different ways. Here are a few reasons that you might

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 real estate agent?

One of the best reasons to hire a real estate agent is that the sellers are likely to use their own agent— and you want to keep that agent from taking over the process. In fact, the seller's agent might pressure you to let him or her represent both seller and buyer, in a " dual agency " relationship that primarily benefits the seller.

How much does an attorney charge per hour?

Attorneys normally charge by the hour, at rates ranging from $100 to $500. You might also find attorneys who charge flat fees for specific services, such as preparing real estate closing documents.

How much commission does a seller pay?

The seller typically pays the commission to both the seller's agent and your agent—usually around 5% of the sales price, to be split between the two agents. This percentage isn't cast in stone, however. For example, the seller might negotiate the percentage down if the house is particularly expensive. (And in probate sales, the court sets the commission.) Some buyers' agents have even been known to offer the buyer a percentage of their commission at closing.

What do experienced real estate agents do?

What's more, experienced agents usually have contacts with good inspectors, mortgage loan brokers, and others who can make your buying process easier. And they know what's considered appropriate behavior and practice in your geographical area.

How to get through the process of buying a house?

The process of buying a house is complex, and most people find it's easiest to get through with an agent by their side. Paperwork will be flying around like a small tornado, and it can be helpful to have someone familiar with the process to deal with it. Other parts of the transaction will be happening quickly too—hiring inspectors, negotiating over who pays for needed repairs, keeping up good relations with the sellers (through their agent) and more.

Who wrote Nolo's Essential Guide to Buying Your First Home?

To learn more about working with agents and attorneys to bring about a smooth, affordable house purchase, see Nolo's Essential Guide to Buying Your First Home, by Ilona Bray, Ann O'Connell, and Marcia Stewart.

Can a real estate agent answer a legal question?

However, legal issues might arise that your real estate agent can't answer. In that case, you'll need an attorney's help. Although good agents know a lot about the negotiating and contracting part of the process, they can't make judgments on legal questions. For example, what if your prospective new home has an illegal in-law unit ...

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.

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.

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.

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 you pay to fix something down the line?

Of course, if you hire professionals to help you with these things, 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.

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 an attorney for real estate?

An attorney helps you protect your investment and assets while ensuring you’re conducting your side of the transaction legally — which can prevent costly missteps. Real estate attorneys are required in many states, but even if you aren’t legally required to use an attorney while selling, it can be a good idea.

What is a real estate attorney?

Real estate attorneys help oversee home sales, from the moment the contract is signed through the negotiating period (aptly called the “attorney review”) to closing. A seller’s attorney reviews sales contracts, communicates terms in a professional manner and attends closings to prevent mishaps. Selling a home is a complex process ...

How much does a real estate attorney cost?

How much you’ll pay for real estate attorney fees depends on your market and how involved they are in the transaction, but they typically charge a flat rate of $800 to $1,200 per transaction . Some attorneys charge hourly, ranging from $150 to $350 per hour.

What is an escrow manager?

Escrow manager: The escrow manager, officer or agent is a third-party representative responsible for holding funds during the transaction and making sure every party gets paid the correct amount at closing. In some cases, escrow officers work at title companies, blurring the lines of which party is distributing funds at the closing table.

What to do if you have liens on your home?

Liens: If there are outstanding liens on your home, an attorney can help resolve those issues and clear the path to closing. They can communicate with the title company to make sure all lien holders get paid correctly.

What to do if you inherited a home?

An attorney can help you navigate the complexities. Estate sale: If you inherited the home you’re selling, hiring an attorney to sort through ownership documents can ease the burden, which is especially helpful when you’re grieving the loss of a family member.

What to do when selling a house with someone other than your spouse?

Joint sale: If you are selling a home with someone other than your spouse, an attorney can help you keep both your best interests in mind . As mentioned before, an attorney for each party ensures both sellers’ interests are prioritized.

What is the difference between a closing attorney and a title company?

A significant difference between working with a closing attorney as opposed to a title company is the breadth of involvement. A closing attorney's responsibility is multi-faceted. They can help with loan documentation ...

What is the job of a title company?

A title company's primary responsibility is confirming the legitimacy of a property’s title and then issuing title insurance. Title companies play a pivotal role in settling all outstanding balances with respect to the home purchase, including issues that might hamper the transferring of the title. Title companies work on behalf of many title insurers rather than the buyer or seller of the house. Their responsibilities sometimes also include obtaining a copy of a possible survey of the property. The review of the survey would confirm property lines and identify any encroachments or easements from neighbors. Failing to complete this due diligence could result in issues for the homeowner. In some instances, your title company can maintain escrow accounts to ensure the funds are used for the closing and settlement of the purchase.

What is Rochford Real Estate Law?

Rochford Real Estate Law offers the services of both title company and closing attorney. If you are looking for trusted legal representation for buying your home, contact us today for a free consultation.

What does a closing attorney do?

The task of the closing attorney is overseeing the purchase and sale agreement in a real estate transaction. The attorney will review all documents associated with the purchase. These instruments range from deeds to settlement statements. Closing attorneys also take on the task of examining the title and overseeing the purchasing of the title insurance. A significant difference between working with a closing attorney as opposed to a title company is the breadth of involvement. A closing attorney's responsibility is multi-faceted. They can help with loan documentation and disbursement, as well as, explain deeds and notes associated with the purchase. They represent the buyer as opposed to the insurer, assisting with any legal problems or questions that might crop up during the settlement process.

What is title insurance?

The Title and Title Insurance for Purchasing Your Home. A notable overlap of responsibilities for both the title company and the closing attorney is to secure a clean title to your property. The title is crucial for all buyers as it gives you a legal right to the house that you've purchased.

What is the title search for a house?

This step is essential to determine that the seller is the current owner and is legally allowed to sell you the house. The title search confirm s outstanding mortgages, judgments, unpaid taxes or other issues that would profoundly impact ownership.

Do you need title insurance when buying a house?

Title insurance is optional if, and only if, you purchase the property with cash. Most lenders will have title insurance as a requirement for the loan. If someone were to materialize and declare themselves as the rightful owner of the property, the title insurance will protect your investment by covering the costs of the house and ...

How long does it take for an attorney to review a contract?

It’s wise to have an attorney review the terms of the contract during the three day attorney review period once the contracts are fully signed. During this time an attorney can cancel, or revise a contract on behalf of a home buyer or seller. Review of contract deadlines. Attorneys will also help keep track of important deadlines in ...

How long does it take to review a realtor contract in New Jersey?

These work well for most homes however every home and circumstance is unique. It’s wise to have an attorney review the terms of the contract during the three day attorney review period once the contracts are fully signed. During this time an attorney can cancel, or revise a contract on behalf of a home buyer or seller.

Can an attorney negotiate inspection terms?

Attorneys can help in negotiating acceptable inspection terms. Often a well drafted letter from an attorney can be more well received if it is coming from an attorney rather from an agent or home buyer or seller. Review of contract terms.

Can a real estate agent give legal advice?

Real estate agents can’t give legal advice. Real estate agents can go over the contingencies of a contract but they can’t give legal advice. Only an attorney can advise you on legal matter. Inspection Negotiations. Attorneys can help in negotiating acceptable inspection terms.

What is the job of a title company?

A title company’s job is to make sure the closing is completed correctly and orderly. To do this, the company will make sure all the paperwork is in order, conduct a title search and order the reports and surveys needed to transfer property ownership.

Why is it important to have a title company?

The important thing to remember is that the title company is there to help all parties close smoothly and efficiently. Without the title company, you may experience unnecessary delays and/or unforeseen issues

Why do you need title insurance?

Title insurance is required by most mortgage lenders. This insurance protects the lender (and a separate policy protects the buyer) from unforeseen defects in the title.

What is title search?

A title search is a public records examination of the property’s title. This research determines that the property is free and clear of liens and is eligible for sale. The very last thing you want to do is buy a house and then find out there are liens against it, or worse, a co-owner didn’t sign off on the sale!

Who files closing paperwork?

Paperwork Filing: The title agency files the closing paperwork with the appropriate government agencies and makes sure the buyer, seller and mortgage lenders all get copies of the closing documents.

Should I use a title company when buying or selling real estate?

There are many reasons for buying or selling a home without the assistance of a realtor, but one service provider you shouldn’t complete a transaction without is a title company. This is especially true with a for-sale-by-ower purchase or sale. Using a title company not only ensures that your closing goes smoothly, it also safeguards your transaction.

Why do you need an attorney when selling a house?

You’re the heir or executor of a property whose owner is now deceased. You’re selling a house with an uncooperative partner. You have judgments or liens on the property.

What does a real estate attorney do, anyway?

The job of a real estate attorney is to negotiate and make a transaction come together in a peaceful manner that’s fair and amenable to all parties.

What is the education required for real estate agents?

As part of agents’ licensing education, they’re taught and tested on real estate contracts used within their state, many of which also require continuing education courses and/or certifications on subjects such as ethics, buyer’s agency, distressed property sales, and more.

Which states require a real estate attorney to be present at closing?

These include Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and West Virginia. Keep in mind that these rules can vary by region within states, too.

Who attends closing with real estate agent?

In case any last-minute issues crop up, the attorney will attend your closing along with your real estate agent and possibly a representative from your lender.

Does realtor.com make commissions?

The realtor.com ® editorial team highlights a curated selection of product recommendations for your consideration; clicking a link to the retailer that sells the product may earn us a commission.