what states require you to have a real estate attorney

^{The following states require you to hire a real estate attorney when you buy a home:}

• 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
West Virginia

Full Answer

Which states require a real estate attorney?

Aug 20, 2020 · So as you get ready to buy a home, it’s a good idea to find out if your state requires you to hire an attorney from the very beginning. The following states require you to hire a real estate attorney when you buy a home: Alabama Connecticut Delaware District of Columbia Florida Georgia Kansas Kentucky Maine Maryland Massachusetts Mississippi

Which states require attorneys for real estate closings?

Apr 03, 2022 · (3 days ago) For instance, some states, like Louisiana, require a real estate attorney to examine and certify the title. But in Georgia, court decisions from 1989 and 2000 determined a licensed attorney must conduct real estate closings and “be in control of the closing process from beginning to end.” Url: View details

When to use a real estate attorney?

Apr 30, 2021 · Nebraska: Real estate attorneys are not essential for closing but may be advised by your real estate agent. Nevada: Real estate attorneys are not essential for closing but may be advised by your real estate agent. New Hampshire: New Hampshire requires a licensed attorney to conduct real estate closings.

How do you become a real estate attorney?

Aug 19, 2019 · Basically, this says that Virginia’s state government requires that you have an attorney closing or title company present at closing for real estate transactions to provide you with legal advice should you need it for when you’re ready to buy a house. West Virginia

Is a real estate attorney required in NY?

Although attorneys aren't a required part of real estate transactions in many states, the local custom in New York is for both buyers and sellers to be represented by their own counsel. You might also want to hire a buyer's agent to help you find a home to purchase and advise you when making an offer.

Is Florida an attorney state for real estate?

While many states require the use of an attorney for a real estate purchase or sale, Florida is not one of those states.Nov 3, 2016

Does NC require a closing attorney?

North Carolina has a law that all real estate closings must take place with a North Carolina licensed attorney.Oct 28, 2011

Is Texas an escrow or attorney state?

There aren't any documentary, transfer, or mortgage taxes. Property taxes notices are send around October 1st, but are not due until the end of the year. Texas is a community-property state. Lenders handle about 60% of the escrows and title companies handle the rest.

Is New Jersey an attorney state for real estate?

The states that require a real estate attorney to be involved 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 ...Jul 31, 2019

Is Texas An attorney state?

Are You In An Attorney State?StateAttorney State?TexasNoUtahNoVermont​Yes - Attorney StateVirginia​Yes - Attorney State47 more rows•Jan 4, 2022

Is Georgia an attorney state?

The state of Georgia has traditionally been an “attorney-closing state,” meaning that only licensed attorneys may conduct the settlement at which closing documents are signed.

Is Colorado an attorney state for real estate?

Colorado: Real estate attorneys are not essential for closing but may be advised by your real estate agent. Connecticut: Connecticut Senate Bill 320 (Public Act No. 19-88) requires a licensed attorney to conduct real estate closings.Apr 30, 2021

Is Delaware an attorney state for real estate?

The following states require you to hire a real estate attorney when you buy a home: Alabama. Connecticut. Delaware.Aug 20, 2020

Is NY An attorney closing state?

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 ...

Which states are survey states?

A survey is not required on loan policies on resales on residential property up to 25 acres and commercial transactions up to $1,000,000 in some states (Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Mississippi, ...

Is California an attorney state for real estate?

You Need Not Hire an Attorney, Although You Might Want To While some states require that an each party to a real estate transaction retain a lawyer to represent their interests at the closing; California does not.

Which states require attorneys for real estate closings?

Here's a list of Attorney Only States: Alabama, Delaware, Georgia, Massachusetts, New York, North Carolina, South Carolina, Virginia, West Virginia.

Can you close on a house without a lawyer?

In some state jurisdictions, it's also a mandatory prerequisite to hiring an attorney to gather all the documents and legal advice needed in the pr...

Would I still require a real estate attorney if I don't live in these states?

While certain states require attorneys at closing, not all do. Say, for instance, if you live in Indiana then your state would not require that you...

Why do real estate attorneys help?

Provide peace of mind to all parties. Thanks to their experience and education, real estate attorneys can provide some peace of mind for all parties involved. They help protect clients from legal disputes and streamline the closing process for a smooth sale.

What can an attorney do in a contract dispute?

Attorneys can also act as a mediator between buyers and sellers in a contract dispute. The attorney can look back on the sale documents and provide both parties with an unbiased, legal perspective.

What is a fact checker in real estate?

In many ways, real estate attorneys serve as “fact-checkers.” Agents can often defer to an attorney’s better judgment, concerning everything from initial contracts to the breakdown of final closing costs.

How much does a real estate attorney charge?

However, some attorneys charge a flat fee for their assistance in real estate transactions, and these costs can range from $950 to $5,000. The buyer usually foots the bill for this expense, but they may negotiate for the seller to pay the fees in some instances.

What do attorneys do before transferring a property title?

Before transferring the property title, attorneys evaluate public records on a property’s history, to uncover any potential liens or other issues that might negatively impact the title for the new owner.

What is the job of an attorney?

According to Cowart, the attorney’s primary job is to review, and sometimes draft, the title and contracts and to facilitate the closing process; in states where an attorney’s participation is not mandated, title companies typically conduct these steps.

Which states require a real estate attorney to close?

Nebraska: Real estate attorneys are not essential for closing but may be advised by your real estate agent. Nevada: Real estate attorneys are not essential for closing but may be advised by your real estate agent. New Hampshire: New Hampshire requires a licensed attorney to conduct real estate closings.

What is a real estate closing attorney?

Much like Virginia, for property closings in West Virginia, real estate closing attorneys coordinate the closing or settlement process for the property being purchased. A real estate agent or attorney facilitates the closing by coordinating these activities necessary to ensure that the title to the property is transferred according to the terms of the purchase, sale contract and that the funds are accounted for on a settlement statement.

What is the law of the land?

The law of the land is also evident in the importance that real estate attorneys must adequately determine the legal description of the real estate. The description must be consistent with the homeowner’s mortgage and the deed. The attorney must also describe to the borrower, the specifications and terms of all the real estate documents.

What is the role of a real estate agent?

A real estate agent or attorney facilitates the closing by coordinating these activities necessary to ensure that the title to the property is transferred according to the terms of the purchase, sale contract and that the funds are accounted for on a settlement statement.

What is a settlement agent in Virginia?

The Real Estate Settlement Agents Act authorizes licensed attorneys, title insurance companies, real estate agents, real estate brokers, and financial institutions to serve as Settlement Agents. This means that by law, the purpose of this Act is to provide consumer protection safeguards and to define who can lawfully provide real estate settlement services in Virginia. Basically, this says that Virginia’s state government requires that you have an attorney closing or title company present at closing for real estate transactions to provide you with legal advice should you need it for when you’re ready to buy a house.

What does an attorney do for a home?

Your attorney will have the responsibility to gather all legal documents, the necessary paperwork, and make preparations for all facets that grant the homeowner legal rights . The attorney will also have a right to determine the validity and legitimacy of the property as well as the title to the property.

What is the role of an attorney in a title?

Also, the attorney is also responsible for determining the adequacy of the title draft, doing the deeds, and managing the legal transfer of the property. Non-attorneys, on the other hand, are only allowed to participate in clerical and administrative duties such as titling insurance, abstracts, etc.

Does a buyer have to hire an attorney in New York?

The state government of New York has made it mandatory for both the seller and the buyer to hire attorneys for the closing transaction . New York has very strict legal ramifications for the role of non-attorneys, which is all due to the New York Appellate Court ruling back in 2009.

Who handles the transfer of real estate from the seller to the buyer?

Escrow Company or Agent: During the real estate closing, there may be an escrow company or agent who has the fiduciary responsibility to handle the transfer of real estate from the seller to the buyer.

Which states require an attorney to close a real estate transaction?

States Where an Attorney is Required for a Real Estate Closing: 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, ...

Do attorneys have a notary public?

Many attorneys have notary commissions or have a notary public on staff, so check with your agent to see if you need to hire one. Many states not listed above do regulate real estate closings as they pertain to the participation of non-legal professionals.

Do you need a lawyer to close a real estate transaction?

However, in some states , you?re required to have an attorney complete the real estate closing transaction; in some jurisdictions, you need a lawyer to be involved with preparation and execution of the documents.

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 ...

What is a real estate attorney?

A real estate attorney 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.

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.

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, ...

Is it legal to buy a home?

Buying a home isn’t just a simple purchase; it’s also a legal transfer of a property from one entity to another. Because the legal side of this transaction can be so complex, sometimes it makes sense (or is even required) for home buyers or sellers to enlist an attorney who can look out for their best interests.

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 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 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.

Do you need an attorney for a closing?

In 21 states and the District of Columbia, attorneys are legally required as part of the closing process. Attorney-required states include: As a best practice, if the other party in your transaction has a lawyer representing them and supporting their best interests, you should too.

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.

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 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 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.

What is a purchase agreement?

The purchase agreement is a legal contract that outlines the rights of the seller and the buyer. A lawyer can review this contract and make sure you’re receiving all the protections and assurances that you should be. Signing an incomplete or sloppy purchase agreement can leave you vulnerable later, even if you abide by your state’s disclosure laws.

Do real estate attorneys have more weight?

And if negotiations do get tough, a commercial real estate attorney simply carries more weight at the negotiating table than a real estate agent. An agent can ask for concessions, but there’s not much weight behind their words. But it’s understood a lawyer’s demands are backed up by the threat of costly litigation.

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.).

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 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 Julie Ryan Evans?

Julie Ryan Evans is an editor and writer who has covered everything from politics to pop culture and beyond. She loves running, reading, cold wine, and hot weather. Get Pre-Approved Connect with a lender who can help you with pre-approval.

A State-by-State Guide

I’ve bought and sold land in a number of states over the years, and in the markets where I’ve worked – I’ve only encountered this obstacle a handful of times.

When Is It Worth The Cost?

Don’t get me wrong – real estate attorneys can certainly play an important role in many transactions (especially the ones that involve a great deal of money or complexity), but when a state’s laws force EVERYONE to hire an attorney for even the simplest transactions… some would argue that this is a bit overbearing.

Special Thanks

It took many hours to compile the information shown in the map above, and as I was doing the research this project – there were a few resources that were extremely helpful to me, so I wanted to give credit where credit is due: