do sellers need their own attorney when selling a home

Full Answer

Do you need a lawyer to sell a house?

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. If you have a good agent and things are running smoothly, you may not need a lawyer.

What does a seller’s attorney do?

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 that requires knowledge of and familiarity with local, state and federal laws.

How much does a real estate attorney charge to sell a house?

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. If I have an attorney, do I need an agent or broker to sell my house?

Should I use a buyer’s agent to sell my house?

Saving on commission fees is one of the most common reasons sellers decide to go it alone. But even if you can avoid the 2.5% to 3% of the sale price you’ll pay your own agent, you’ll still likely pay 2.5% to 3% of the sale price to your buyer’s agent — unless your buyer is also not using an agent.

How much does a real estate attorney cost?

Real estate attorneys cost $150–350 per hour, and usually bill in six minute increments. Or, they may charge a flat fee for certain services. Costs...

Should I use a real estate attorney if I'm selling FSBO?

Unless you're an experienced seller, you should hire a real estate attorney to prepare the purchase agreement and other documents when you sell FSB...

How do I find a real estate attorney?

A great real estate agent can refer you to a great real estate attorney. You can also find real estate lawyers through professional organizations l...

Why do I need a real estate attorney?

Many experts argue that one of the best reasons to hire a real estate attorney is that they’re the only party who isn’t working on commission – meaning that , since they don’t have a financial stake in the final sale price of your home, they’re the only truly neutral third party.

Why is a real estate attorney important?

A good real estate attorney provides a backstop for your real estate agent, finding loopholes in the purchase agreement, saving you money with contingencies, and maybe even insulating you from lawsuits years down the line. Let’s go over some of the situations where hiring a real estate attorney is a good move, the responsibilities ...

How much do real estate attorneys make an hour?

Real estate attorneys are paid by the hour — market rates are between $150 and $350. You may be able to negotiate a flat rate, or a cap on the number of hours they work on your behalf.

Why do agents work on commission?

Works On Commission. Because most agents work on commission, they make more money the higher the final sale price goes. That’s great if your priority is extracting every possible dollar from your sale. But sometimes sellers just want a quick sale, or want their property to pass onto someone who appreciates it.

What are the benefits of being an agent?

A great agent doesn’t just help you buy or sell a property; they also offer a sympathetic ear, gentle advice, and all around emotional support. A huge financial transaction can be a huge source of stress, and a good agent knows how to reassure their clients.

Is a realtor a negotiator?

Real estate agents may be skilled negotiators, but their leverage is limited. An attorney wields the threat of litigation, which is expensive and, if the other party is in the wrong, potentially disastrous. That means they wield significant influence in any negotiation.

Do I need a commercial real estate attorney?

This isn’t the case when it comes to commercial real estate . Commercial real estate deals are much more complicated and risky, and there’s usually a lot more money involved, so hiring a commercial real estate attorney for a commercial transaction is basically required.

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.

Why do I need a real estate attorney?

Reasons to hire a real estate attorney even if it’s optional 1 You’re an out-of-town buyer. 2 You’re buying a property that is a short sale or bank-owned. 3 You’re buying a property that is part of an estate sale. 4 You’re buying a commercial property. 5 You’re buying a property that could potentially have some structural issues. 6 You’re buying a property in a problematic area such as a flood zone or areas with adverse conditions (tornado-prone, radon, toxicity levels, etc.).

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.

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.

What can a lawyer do?

A lawyer can interpret and explain these rules, advise you on the feasibility of your plans, and help you structure the transaction and gain the approvals you will need to move forward. 7. Your instinct tells you to talk to a lawyer.

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.

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.

Is it smart to hire a real estate lawyer?

But there are times when it's a smart idea to hire a real estate lawyer. Here are seven home buying and selling situations where a lawyer's insights can prove invaluable. 1. State law requires you to use a lawyer. In some states, lawyers must be involved in certain aspects of a real estate transaction. In other states, lawyers are optional.

Do I need a lawyer for a home sale?

If you have a good agent and things are running smoothly, you may not need a lawyer.

What should a closing attorney look at when hiring a closing attorney?

If the bank hired the closing attorney, the closing attorney should have looked more carefully at the purchase-and-sale contract to determine exactly what was being sold. If the closing attorney (hired by you or the bank) made the mistake, the closing attorney should fix it.

What is closing attorney?

A closing attorney is an attorney hired by the seller, buyer or the buyer’s lender to handle the paperwork relating to the sale of the home and the lender’s documentation. This attorney acts as a settlement agent but does not represent either the buyer or the seller in the transaction. The attorney’s role is to prepare closing documents ...

What does a closing attorney engagement letter mean?

The closing attorney’s engagement letter will let you know that the attorney does not represent you but rather only prepares documents for the closing, so be sure to look closely for that wording in the document you sign. Advertisement. We mention all of this as background.

Does closing attorney fix conveyance documents?

Remember, this error not only affects the buyer but the buyer’s lender. The closing attorney may have the ability to fix the conveyance documents from you to your buyer, but it may take more work to fix the mortgage documents that the buyer signed to the buyer’s lender. Advertisement.

What happens if my home doesn't sell?

If your home doesn’t sell within a reasonable amount of time, you need to be comfortable pivoting to a new plan. There’s a reason 85% of sellers end up using an agent — successfully selling a home is hard work. If your home sits on the market for too long, the costs you’ll incur paying a listing agent’s commission may be less than the reduced sale price you’ll receive on your stale listing — or carrying two mortgages for an extended period of time.

How long does it take to sell a home?

Note that the average time it takes to sell a home nationally, from listing to closing, is between 65 and 93 days (in 2018), but it also varies based on where you live. So, expect to dedicate a lot of time to the process for at least three months, not including the time it takes to prepare your home for listing.

Why do sellers hire listing agents?

The majority of sellers hire a listing agent because it’s a job that requires skill, dedication, patience and expertise. Most FSBO sellers have full-time jobs, family commitments and other limitations that make it hard to dedicate the time necessary to sell their home for top dollar.

Can I sell my home on Zillow?

With Zillow Offers, instead of finding an agent, listing your home and waiting for a buyer, you can sell directly to Zillow. If your home qualifies, we’ll send you a no-obligation cash offer, and if you need to close quickly, you can schedule a closing date as soon as seven days after accepting the final offer.

Do I need a real estate agent to sell my house?

Do I legally need a real estate agent to sell my house? No, you are not legally required to hire a real estate agent to sell your home. FSBOs are perfectly legal in all 50 states. However, depending on the state where you’re selling, you may be required to hire a real estate attorney to handle the paperwork.

Can I use a discount broker instead of a full service agent?

Instead of hiring a full-service agent, you could engage a discount broker . They usually provide limited services in exchange for a lower rate. For example, for a few hundred dollars, you can have an agent list your home on the local MLS while you do the rest.

Is it easier to FSBO in a sellers market?

It can be easier to FSBO in a sellers market, because homes typically sell faster and closer to asking price, with fewer price cuts. Selling in a buyers market can be more challenging, because it may take longer to get a good offer, and many other listings have a professional agent doing the marketing over the long listing period.

How do you mitigate capital gains taxes on a home sale?

They mitigate the capital gains taxes you owe on your home sale by adding to your adjusted cost basis. Figuring in capital improvements come tax time will be much easier if you’ve kept a record of improvements you made over the course of ownership of the house, so make sure you always hang onto those receipts.

What is a seller net sheet?

A seller’s net sheet is an organizational worksheet that your agent will fill out to show you how much you’ll pocket from your home sale after factoring in expenses like taxes, your real estate agent’s commission, your remaining mortgage, and escrow fees.

What is a deed of a house?

A deed (not to be confused with the title, which isn’t a physical document but a legal concept that grants someone ownership of the home) is a physical legal document that officially transfers ownership (title) of a house from the seller to the buyer.

What is a listing agreement?

A listing agreement makes the arrangement between you and your real estate agent official and gives your agent the exclusive rights to sell your home within a given time frame. The contract lays out the terms of how the real estate agent can promote your home.

Can you count a home inspection in a contract?

Home Inspection Report#N#You can count your buyers putting a home inspection contingency in the contract, which means they’ll arrange for an inspector to come through and evaluate the house before the deal can close.

What to ask a seller about when selling a house?

A seller must also ask about charges for associates, paralegals and miscellaneous costs. A property owner who is considering selling her own property without a real estate agent should also realize that a real estate attorney is not likely to have the same knowledge about the housing market in a particular neighborhood.

What does a seller have to tell prospective buyers about a property?

California real estate law requires a seller to tell prospective buyers a lot about a property's condition, features, issues, defects, pest problems and, essentially, anything else he knows about the property that might influence a buyer to purchase or not to purchase.

What are the responsibilities of a real estate agent in California?

They simply help a seller set a price for a property and find a buyer, often scheduling open houses to show the property. The seller in these states hires an attorney to handle the closing paperwork.

What does a real estate agent do?

A real estate agent can handle both the marketing and the transactional work. The agent negotiates the sales contract and also handles the exchange of disclosures , including timely completion of all required forms. As a result, many sellers don't hire an attorney for a sale of real estate in California.

What is the highest duty a real estate agent can owe?

In California, a real estate agent owes her client a " fiduciary duty .". This is the highest duty one person can owe another under California law. It imposes on the agent the highest degree of loyalty and obligation to the client, requiring her to put the client's interest above her own.

What is commission for real estate?

Commissions for Real Estate Agents and Brokers. If a property owner wishes to use a real estate agent to sell his property, he will have to pay a commission from the amount of the sales price. A real estate agent earns her living by selling other peoples' property and taking a percentage of the sale price.

Can a seller consult with a real estate attorney?

A seller can consult with a real estate attorney however, and there are several circumstances in which this can be a good idea. One such situation occurs when an owner decides to sell her property herself rather than using a real estate agent. Another is when legal issues arise in a potential real estate sale.