what role does attorney play in selling a home

A Real Estate Lawyer’s Role in the Home Selling Process

• Negotiations When negotiating the terms of a purchase agreement with a real estate agent and buyer, a real estate attorney can work to ensure contingencies are as favorable as possible for the seller. ...
• Formal Offer/Contract A real estate lawyer can write terms into the purchase agreement to protect sellers' interests. ...
• Attorney Approval Process ...
• Inspections ...
• Title Search ...
• Mortgage Process ...
• Closing ...
• Post Closing ...

Full Answer

Today, What is the Role of an Attorney in the Purchase and Sale of a Home?

As discussed above, an attorney can and still might carry out many of the tasks that they were initially required to do during the purchase and sale of a home.

Do I Need an Attorney for the Purchase and Sale of a Home?

As is evident from the above discussion, the purchase and sale of a home can be a very complicated process. It involves many legal conditions, which if not complied with, can result in serious legal consequences.

Negotiations

Negotiations When negotiating the terms of a purchase agreement with a real estate agent and buyer, a real estate attorney can work to ensure contingencies are as favorable as possible for the seller.

Attorney Approval Process

Attorney Approval Process A real estate attorney can review the contract after it is signed by both parties. In New York, sellers can reject a purchase agreement without penalty so long as they do so generally within three to five days after signing it.

Inspections

Inspections A real estate attorney can review with the seller the home inspection report produced by the buyer's inspector. The seller's attorney can negotiate credits for the repair of any defects identified in the report or, in instances where conditions are far worse than expected, the terms under which a buyer can be released from the contract.

Title Search

Title Search A real estate lawyer will review a title report provided by the buyer's attorney. If the title report identifies any mechanic's liens or judgments or outstanding mortgages or taxes, the sellers' lawyer can advise his or her clients on the steps they need to take to ensure the property's title can clear closing.

Mortgage Process

Mortgage Process On behalf of a seller, a real estate attorney can work with mortgage lenders to address any concerns that could prevent a buyer from obtaining financing for the transaction.

Closing

Closing A real estate lawyer can prepare and review closing documents after a lender approves a mortgage. At the closing, the attorney will review the deed and other ancillary documents with the seller. It is not uncommon for buyers to refuse to sign the closing documents and direct their attorneys to renegotiate certain terms or conditions.

Post Closing

Post Closing Sellers may find they need representation by a real estate attorney's services after a closing if a buyer believes the sellers improperly removed permanent fixtures or failed to conduct repairs in accordance with the purchase agreement.

What does a lawyer do in real estate?

Lawyers who specialize in real estate ensure that proper procedures are followed during the acquisition or sale of property. They also may be concerned with how a property is zoned for usage. Real estate law covers deeds, property taxes, estate planning, zoning, and titles.

What does a real estate attorney do?

A real estate attorney prepares or reviews all of the documents that are signed at the closing of a real estate purchase. The attorney is then present at the closing to represent the buyer's (or the seller's) interests. Real estate law is a matter for state and local jurisdictions.

What is closing on a property?

Closing is when the money is paid and the title is transferred. The attorney is there to ensure the transfer is legal, binding, and in the best interests of the client. During the purchase of a property, the real estate attorney and staff might prepare documents, write title insurance policies, complete title searches on the property, ...

What is real estate law?

Real estate law encompasses the purchase and sale of real property, meaning land and any structures on it. It also covers legal issues related to anything attached to the property or structures, such as appliances and fixtures.

How long does it take to become a real estate lawyer?

Qualifications. Like any lawyer, a real estate lawyer has earned a law degree, which typically takes three years of study for a full-time student. They have also passed the state bar exam administered by the state in which they practice. Training for real estate law may begin with elective courses and internships during law school, ...

Which states do not require real estate lawyers?

Four states—Illinois, New Jersey, New York, and Ohio— do not require real estate lawyers, however they are typically involved in transactions according to local custom and practice. 1. If you don't live in one of these states, it's up to you whether you want to hire an attorney.

Do you need a real estate attorney at closing?

Many states require a real estate attorney be present at closing. Even if your state does not require one, you might want a real estate attorney to be there for you. A real estate attorney will represent your interests at closing. They will review all paperwork in advance and advise on any problems or omissions with the documentation. 1.

What does a buyer's attorney do?

The buyers´ attorney will review and amend the Offer to Purchase and the P&S Agreement, negotiating the terms of each in their client´s best interests. The attorney will also review the title and the plot plan with the closing attorney to ascertain whether the exceptions to the title are standard or whether there are easements, restrictions, or other rights which interfere with the use of the property. The buyers´ attorney will also typically be in contact with the buyers´ lender, the realtors and the sellers´ attorney before the closing to resolve any outstanding issues between the buyers and sellers or the buyers and the lender, and to confirm that all closing conditions have been met or will be met at the closing.

Who is the closing attorney?

The role of the "Closing Attorney" (the attorney representing the Buyer´s Lender) is a varied one, for although the closing attorney represents only the lender, he/she will typically be the liaison for all the parties involved in a particular transaction: the buyers, sellers, realtors, lender, title insurance company, surveyor, and the buyers´ and seller´s legal counsel. As the attorney for the lender, the closing attorney is responsible for certifying the title to the property to both the lender and buyer, preparing the documentation and settlement statement for the closing, and conducting the closing and disbursing the mortgage and other proceeds in conformance with the lender´s instructions. Unless otherwise engaged, the closing attorney does not represent the interests of the buyers or the sellers.

How does dual representation benefit buyers?

Dual representation benefits the buyers by reducing the total cost of legal fees: The buyers only pay once for the attorney to review the title, obtain from all parties any documentation/information needed in anticipation of the closing, and prepare and review with the buyers all closing documents and costs.

What happens if a lawyer cannot exercise independent legal judgment on behalf of either client?

If a conflict arises during the course of the transaction, or if the buyers, the lender or the attorney feels that the attorney cannot exercise independent legal judgment on behalf of either client, then the attorney must withdraw from representation.

Who is responsible for certifying the title of a property?

As the attorney for the lender, the closing attorney is responsible for certifying the title to the property to both the lender and buyer, preparing the documentation and settlement statement for the closing, and conducting the closing and disbursing the mortgage and other proceeds in conformance with the lender´s instructions.

Does closing attorney represent buyers?

Unless otherwise engaged, the closing attorney does not represent the interests of the buyers or the sellers. The sellers´ attorney represents only the interests of the sellers.

Can a buyer be represented by a lender?

The buyers may choose to be personally represented by the lender´s attorney. Under the rules of the Supreme Judicial Court governing the representation of multiple clients, an attorney is permitted to represent multiple clients if he/she can adequately represent the interests of each and if there is no inherent or obvious conflict between the clients´ interests. If a conflict arises during the course of the transaction, or if the buyers, the lender or the attorney feels that the attorney cannot exercise independent legal judgment on behalf of either client, then the attorney must withdraw from representation. Dual representation benefits the buyers by reducing the total cost of legal fees: The buyers only pay once for the attorney to review the title, obtain from all parties any documentation/information needed in anticipation of the closing, and prepare and review with the buyers all closing documents and costs.

What do sellers rely on their lawyer for?

Before a contract is in place, many sellers rely on their lawyer for help in drafting the terms of their sale and reviewing a listing agreement, if one is involved. The attorney may offer advice on many issues, such as whether or not to divide the property, impose a development-limiting covenant, keep a right of first refusal on a future sale, ...

What does a real estate lawyer do?

What does a real-estate lawyer do for a seller? In most real-estate sales, the lawyer representing the seller has an easier job than the individual representing the buyer. The tasks of the seller’s lawyer can be divided into two stages—before the contract is signed and after. Before a contract is in place, many sellers rely on their lawyer ...

What happens before closing on a house?

Prior to closing, the seller’s lawyer will review the proposed settlement statement that the buyer’s lawyer has prepared. Debits and credits will be reviewed, and the math checked.

Should a seller consult a lawyer?

The seller should consult his lawyer as offers come in and counter-offers are made. Certain proposals will have adverse or beneficial tax implications, which an experienced real-estate lawyer will be able to flag for his seller. The second stage of legal work for a seller begins once a signed contract is in hand.

Who drafts the deed of a house?

The seller’s lawyer takes the lead in resolving the problem. Once the buyer’s lawyer gives a green light on the title, the seller’s lawyer drafts the deed that conveys the property to the buyer. This is usually a simple job of reusing the language from the deed into the seller and updating it with whatever changes might be required.

Who represents the seller during closing?

The seller’s lawyer represents the seller during closing. Sellers should look for a lawyer who has negotiating and problem-solving skills. Many of these tasks are routine, but the seller’s lawyer is needed when a problem has to be solved quickly to save the deal.

Should a seller review the contract language with his lawyer?

The seller should review contract language with his lawyer before authorizing his agent to use the agent’s standard contract and its boilerplate with interested buyers. Most lawyers have worked up their own “standard” real-estate contract over the years, and this may be the document a seller prefers to use. The agent’s contract may be fine “as is,” but the prudent seller should talk over its provisions with his lawyer in advance of using it with any buyer.

Why do home sellers need a lawyer?

He or she focuses on protecting the client’s interests and ensuring that all applicable rules are adhered to in order to avoid potential problems that could arise in the future.

What is the purpose of a real estate lawyer?

Real estate lawyers can help request these disclosures as well as prepare the disclosures if they are representing the seller. Without a real estate lawyer, the likelihood of being sued regarding a disclosure increases. A real estate lawyer can also be sure to put a home inspection clause in the buyer’s documents so that any unknown defects are realized before the transaction concludes.

Why do real estate lawyers search for a title?

A real estate lawyer often conducts a title search on a property to determine if there are any encumbrances against it or anything that is clouding the title. This search helps clarify whether the seller has the legal right to sell the property and whether there is anything that may block the sale. For example, the seller may be required to pay off a lien or judgment before selling the home. A real estate lawyer can also secure proof that the judgment or lien has been satisfied.

What happens if a deed is not recorded?

Property law is full of cases involving properties that were purchased but no deed was ever recorded, creating legal nightmares for buyers. A real estate lawyer can ensure that the deed is properly filed and recorded. If a deed is not properly recorded, the buyer may not be considered the legal owner. His or her income and estate taxes may be levied.

Do lawyers review documents?

Many documents will manifest during the course of a purchase and sale of a home. Lawyers will carefully review all of these documents and not simply take the lender’s word for what the document is stating. If there is any troubling wording or legal issue that arises, he or she can address these concerns.

Can a real estate attorney draft a change in the purchase agreement?

There may be changes based on the home inspection and agreements reached regarding any defects. A natural disaster may strike, causing damage to the property. Real estate lawyers can draft such amendments to keep the purchase agreement intact but to account for this new information.