do you need an attorney when paying cash for real estate

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

Does a home seller need an attorney for a cash deal?

 · You may or may not need a real estate attorney. If you or the buyer need title insurance, you will need to contact a title company. They will walk you through the process and get the legal work done for you. If you do not need title insurance, you could still use a title company or you could use a real estate lawyer. You probably need a contract, which will set out …

Do I need a realtor to buy a house with cash?

 · Some people hire an attorney early in the process, to handle such matters as reviewing the brokerage contract with a real estate agent, while others wait until the purchase contract is drawn up, or...

Does paying cash protect you when buying or selling real estate?

 · Appraisal fee. Home inspection fee. Even if you’re buying a home with cash, the one-time closing costs, or fees you’ll have to pay during …

Should you hire a lawyer when buying a home?

When you BUY a home, you don't need a realtor, and it doesn't matter if you pay cash or not. On the other hand, if you use a realtor as a buyer, you don't pay him, so why not? Of course you can make your initial offer to the seller asking for a discount because you don't have a realtor, and the discount would be between 1% in Canada and 3% in the US.

What is the job of a real estate attorney?

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. A real estate attorney takes over after the selling price and terms have been established by the real estate agents in the contract and all parties have signed.

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.

Why is it important to have an attorney involved early in the process?

Having an attorney involved early in the process can often save time and money in the long run , Zuetel says.

Does a brokerage offer a real estate attorney?

Some brokerages offer the services of a real estate attorney and broker in one at no additional cost.

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.

Who is the executor of a property whose owner is deceased?

You’re the heir or executor of a property whose owner is now deceased.

What is a problematic area to buy a house in?

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.).

Who pays for home inspections?

Home inspections, ordered and paid for by either the buyer or seller depending on the locality, must be performed and the results may lead to a further negotiation of price. Agree with the buyer who pays for further inspections, like septic tank, pests, and determine the limits for repair, if any are required.

Do you need an attorney for a cash deal?

Does a Home Seller Need an Attorney for a Cash Deal? A real estate contract is complicated. Unless you’re a licensed real estate agent, an attorney or well-versed in the language of contracts, it’s a good idea to have a professional on your side when title changes hands, even if it’s an all-cash deal. Some states require a real estate attorney ...

Is an all cash deal the same as a mortgage?

An all-cash deal has many of the same contingencies as a mortgage-bound contract. Be sure you enter into the agreement with a state-approved purchase contract and that you read all the terms and conditions. Note the time frame of all contingencies and guide the process.

Do you have to calculate taxes before closing?

All taxes must be computed before closing. Pro-ration of amounts is calculated and added to the closing statement of both seller and buyer. Calculate all state, county and city taxes. There is also a recording fee charged. Know what that is and how to record the sale once it’s completed.

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.

Can a real estate attorney represent both the buyer and seller?

When a person is ready to buy or sell real property, a real estate attorney can represent the buyer or the seller but not both. Representing both is not allowed because it could lead to a conflict of interest.

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.

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.

How much does a real estate attorney charge per hour?

Fixed hourly rate: A real estate attorney who charges an hourly rate may charge $150 – $350 per hour, but this can vary a lot depending on how experienced the attorney is and what area you’re in.

Do you have to have an attorney at closing?

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 contract was negotiated. If you want your own attorney in addition to the one required by your lender, you’ll also pay for any services they provide you.

How much does a real estate attorney charge?

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 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 ...

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.

Who is responsible for underwriting title insurance?

Title company: A representative of the title company is responsible for underwriting the title insurance and transferring the clean title of the home to the buyer.

Who hires an inspector to inspect a house?

Inspector: The inspector is hired by the buyer. Their job is to make sure the buyer knows about everything that may need to be repaired on the home. Sellers also sometimes hire an inspector to do a pre-inspection so they can make any necessary repairs before putting the house on the market.

Who to ask when selling a house?

From a friend: Ask colleagues, family members, friends or neighbors who they used in their home sales.

Who do real estate agents refer to?

They may even have a referral for an attorney who is an expert in your specific type of sale.

What is a real estate lawyer?

A real estate lawyer is licensed to practice law and specializes in real estate transactions. A real estate lawyer is familiar with all aspects of the home purchase process and can represent buyers, sellers or lenders. In states where a lawyer is required to be present at closing, it’s possible that the lawyer is there solely to represent ...

How much does a lawyer cost?

The cost for a lawyer could be around $200 to $300 an hour, or just a flat fee of several hundred dollars that you pay at closing.

What does exclusive representation mean when buying a house?

Exclusive representation. When you are buying or selling your home, everyone has an interest in the deal getting done, including real estate agents and the lender. This can make you feel like you’re on your own at times. However, if you hire a lawyer, you’ll have access to an independent third party who can review the contract and represent your best interests throughout the transaction.

Why is it important to have a lawyer in a negotiation?

This is important because when you’re in the middle of a potentially contentious negotiation that needs to be resolved quickly, you’ll want the lawyer to be available to advise you and negotiate with the other party.

What are some situations that are unusual and might require an attorney’s advice and negotiating skills?

Here are some situations that are unusual and might require an attorney’s advice and negotiating skills: You’re buying a home that is part of a special type of sale, such as an estate sale, short sale, auction or purchase from a bank. You’re purchasing a home that’s in another state.

What is the most important document in the home sale process?

It can help you avoid potential problems down the line by making the contingencies as favorable to you as possible. The contract is the most important document in the home sale process, and it includes several negotiable issues. Some of the most important issues in the purchase contract involve: Timing. Your timeline for closing on the property ...

Can a lawyer review a purchase contract?

Although real estate agents usually play a central role in preparing purchase contracts, a lawyer could provide a review of the purchase contract terms. What’s more, real estate agents are generally limited to filling out contract templates, rather than drafting them from scratch.

Why do people buy houses with cash?

Maybe you came into a large inheritance, or you’re just really good at saving. Either way, paying the price of the home in full means you won’t have to worry about making mortgage payments. Plus, sellers love a cash offer because it means they won’t have to wait for mortgage lenders ...

What utilities do you need to pay for a house?

Don’t forget to factor in utilities such as electric, gas, water, sewer, and trash. To get a clear picture of what you’ll be required to pay, ask your real estate agent to ask the sellers what a year’s worth of bills costs. Utilities can fluctuate from season to season, so this is especially important if you’re moving across the country to a new climate.

How much does a HOA cost?

These fees will be based on the size of your home and the amenities in your community, but for a typical single-family home, HOA fees can cost around $200 to $300 a month.

How much does a home warranty cost?

Shur recommends considering a home warranty, which costs about $450 a year and provides coverage on a wide variety of elements such as plumbing, electrical, heating/air conditioning, and appliances.

How to find out what your property tax bill is?

To get an idea of what those bills will look like, check a home’s listing on realtor.com®. Scroll down to the Payment Calculator section, and look on the line that says Property Tax.

How much does closing cost for cash?

Even if you’re buying a home with cash, the one-time closing costs, or fees you’ll have to pay during the closing process, can be as much as 3% of the purchase price, according to Lee Dworshak, a Realtor with Keller Williams LA Harbor Realty.

Do you have to pay HOA fees when buying a house?

If you’re buying a house with cash in a community with a homeowners association, you might have to budget for monthly or annual HOA fees. These mandatory fees are paid by everyone who owns in the community and go toward maintaining the common areas .

Do you need a realtor if you need a loan?

Even if you need a loan, your need or no-need of realtor does not change. Your need of a lender, loan-officer, or mortgage broker changes. So the first half of your question has not much to do with the second part of the question. As you saw with the other answers, you need a realtor, no matter what, since they would protect you. That is basically false. Since realtors often do not take any liability, in fact, they go an extra step sprinkling everywhere in the contract that th

Do you need a realtor?

As you saw with the other answers, you need a realtor, no matter what, since they would protect you. That is basically false. Since realtors often do not take any liability, in fact, they go an extra step sprinkling everywhere in the contract that they are not responsible for pretty much anything.

Is it foolish to not have a compitent exclusive buyers agent?

In your case it would be foolish not to have a compitent exclusive buyers agent.

Is a realtor commission paid?

Additionally the Realtors' commission is paid, in most cases, by the seller. So it's not costing you anything. Liz Mann.

Should I hire a lawyer for closings?

If you can afford it, I think you’d be better off with a lawyer — assuming he does closings and his fees are reasonable. It definitely should not cost a fortune.

Do realtors help you?

YES! A good realtor will help you do your due dilegence on your new home. They will make sure your contract is written to protect you. They will guide you to help you avoid very costly mistakes. They will provide you will all the current and relevent information you need to make the right decisions. A real estate agent works hard to negotiate for you and with their experience will prepare you for every step of the process. It’s a big investment to go in unrepresented.

Do you need an escrow agent for a cash transaction?

If you’ve done a lot of transactions, have an escrow agent, and know all the common contract clauses; maybe not. With a cash transaction the negotiations are simple, but the title work can get slippery

How to buy a house with cash?

Buying a house with cash: The process. 1. Get the cash together. The first step to purchasing a house with cash is to make sure you have the cash together in one place. Maybe you’ve already got enough money sitting in a savings account, waiting to spend on the perfect home.

Why should I offer cash for a house?

Offering cash for a home purchase will make you more competitive in a seller’s market , says Ludecker. “I have a client who bid on a cute little house, and it was one of nine offers that came in on the first day or two,” says Ludecker. Unfortunately, her client lost that house to a cash buyer.

Who handles closings for escrow?

In most states your settlement agent will be a title or escrow company, but in others, the closing may be handled by special closing attorneys. Talk to your real estate agent and choose a settlement agent that can see the deal through to completion and ensure the title research is thorough.

What happens when you include an inspection with an appraisal?

When you include an inspection contingency and an appraisal contingency with your offer, you’re indicating to the seller that you would like to buy the home as long as the home inspection reveals the home to be in good working order and the appraisal comes back in the ballpark of the purchase price.

Is it a good idea to have a letter from a bank?

If you make a cash offer and you want to be competitive, it’s a good thing to have a letter from the bank, advises Ludecker, in order to prove that you have the cash available.

What to do if house appraises lower than purchase price?

One way to approach this is to ask for an appraisal and bake a contingency into the offer, so if the house appraises much lower than the purchase price, you can renegotiate or walk away.

Do you need an appraisal for a house?

Though you don’t really need an appraisal because you’re paying cash, you may want to confirm that the house you’re purchasing is worth what you are paying for your own peace of mind.

What does it mean to have a real estate attorney?

That may mean handling routine documents and paperwork, like processing purchase and sale agreements, to be sure. But, depending on the circumstances, it may also mean getting through zoning boards, historical commissions, licensing boards, easement granters, and more – all with the right papers in the right places, at the right time.

What can an attorney do for a property?

An attorney can help look into the history of the land, including determining if other developers have attempted to build on the lot previously – and, if so, why they were unable to complete their projects. Helping you to find liens, lawsuits, and other judgments involving the property, or nearby properties. Helping you to find restrictions on the ...

What can a real estate attorney do for easements?

A real estate attorney can assist when it comes to ordering a plat of survey and discovering any easements or other restrictions on the property, such as historical designations or environmental regulations. Land surveys can also help determine the boundaries of the property, and help determine if there are any legal complications, such as encroachments or disputed boundaries, that might come up.

What can an attorney do for vacant land?

An attorney can help you look into zoning ordinances for the area, allowing you to determine if your lot is zoned for residential development, commercial development, mixed use, or so on.

Can you invest in vacant land?

While you may have starry-eyed dreams of investing in vacant land, it’s important to keep in mind that this real estate opportunity isn’t going to be the right fit for everyone – and that turning raw land into real success is often going to mean building up the right team first.

Why is it important to own land?

Owning land can be a path to prosperity and fulfillment – but it’s also important to remember that purchasing raw, vacant, or undeveloped land can often come with its own unique set of challenges and obstacles.

Why do people buy land?

Land ownership has always held a special, romantic place in our popular culture. Many see buying land as a springboard to grow one’s wealth, and then leapfrog ahead to greater things. For others, it’s all about carving out a space to create, to build the life you’ve always hoped to have, with greater financial freedom and personal independence.