when to call a real estate attorney

What is a real estate lawyer?

Other times, real estate lawyers are only hired to act as litigators if a dispute arises in the process of a transaction.

Why do you need a lawyer for real estate?

Whether buying or selling a property, a lawyer can ensure your legal rights are protected. Commercial real estate transactions and overly complex situations require real estate lawyers to guarantee a party’s best interests are upheld. If you are deciding whether to hire a real estate lawyer, keep reading for guidance in your decision-making process.

What happens if there is a discrepancy in a real estate transaction?

If there is ever a discrepancy during the transaction, it may be in your best interest to hire help. Real estate transactions are expensive, and if mishandled, can result in decades of problems for the buyer.

What to do if a real estate transaction is cut and dry?

If a real estate purchase is not simply cut and dry, hire a lawyer for guidance. Transactions including problems with titles, disclosure, mineral or surface rights, and tax concerns can all lead to the need for a real estate lawyer. If there is ever a discrepancy during the transaction, it may be in your best interest to hire help.

What to do if you are involved in a commercial sale?

If you are involved with any commercial purchase or sale, always contact a real estate lawyer. The investment and purchase are too big to be left to agents not educated specifically in real estate law.

What to consider when buying a commercial property?

When buying a commercial property, there are many factors to consider that are not present during residential transactions. Commercial real estate lawyers will be present to advise you on environmental concerns, zoning issues, liens, easements, legal description accuracy, structural conditions, and any rents derived from the property.

What is a commercial real estate lawyer?

Commercial real estate lawyers work with businesses to buy, sell, lease, and develop properties. Residential lawyers can prepare and manage mortgage, title, and closing documents associated with buying a home.

Is it necessary to have a real estate attorney?

Of course, it’s helpful to have a real estate attorney when it comes to handling purchase agreements, mortgage documents, title documents, and transfers. However, there are also other issues that could surface during a real estate transaction, such as boundary disputes or petition to quiet.

Is a real estate agent an attorney?

Your real estate agent has your best interest in mind and knows things like when is the best month to sell a house, but it’s important to remember that an agent is not an attorney. Straightforward real estate transactions typically do not need legal representation (unless required by the state), but sometimes it’s best to reach out for assistance, especially if there are questions or concerns. Attorneys are trained, have the experience, and know-how to navigate complex legal jargon and specific laws.

Is a real estate attorney a good investment?

Yes, a real estate attorney is an added expense, but it can be a worthwhile one. If a legal professional can take care of something quickly, you and your real estate agent are free to handle the next step in the process.

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 ...

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 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.

What is closing on a home?

Closing. The moment you’ve been waiting for— closing on a home sale or purchase —often involves dozens of pages of legal documents to review. A lawyer can help both the seller and buyer navigate the review, which can be especially intimidating and confusing to a first-time homebuyer.

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.

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 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 ...

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 ...

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 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.

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.

How many states require an attorney to close a business?

In 21 states and the District of Columbia, attorneys are legally required as part of the closing process. Attorney-required states include:

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 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.

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.

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?

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How to speak with a closed real estate transaction?

In the event you are contacted by an attorney for a client on a closed real estate transaction, and you wish to speak with him or her about the transaction absent the presence of your own attorney giving you legal counsel as recommended above, you should consider sending a confirming e-mail to the attorney memorializing the conversation with explicit reference to any legal advice that the attorney gave you in the conversation and save the e-mail in your transaction file. The significance of confirming any legal advice that the seller’s or buyer’s attorney gave you places the particular attorney in a conflict situation if he chooses to name you in a lawsuit concerning the closed real estate transaction that you both had discussions about.

Why should a real estate licensee communicate with a former client?

The communications by the real estate licensee further put him or her at risk for being sued in the event of a lawsuit regardless if the real estate agent deemed the client a “friend.”

What happens after closing escrow?

When problems arise after close of an escrow for a particular real property, the listing and selling agent are typically contacted by an attorney for either the seller or buyer or both of them . This raises a concern for the real estate agent, in that he or she usually desires to help his or her client where communicating with ...

What is attorney-client relationship?

An attorney-client relationship may be inferred from the parties’ conduct despite the absence of any written agreement. Neither a fee payment nor a formal agreement is required. (Lister v. State Bar (1990) 51 Cal. 3d 51 Cal. 3d 1117; Streit v. Covington & Crowe (2000) 82 Cal. App. 4th 441, 444) An attorney-client relationship can be established when the attorney offers to investigate a case, volunteers legal services or otherwise provides legal advice to a prospective client. (Beery v. State Bar (1987) 43 Cal. 3d 802, 239.

Does a real estate agent have to provide copies of all documents in the transaction file?

Under California law, an agent’s duty terminates when the real estate transaction ends. There are no post escrow duties between the real estate agent and his or her former client, other than the licensee is required to provide the former client with copies of all documents in the transaction file if asked. (Menzel v. Salka (1960) 179 Cal. App. 2d 612; Robinson v. Grossman (1997) 57 Cal. App. 4th 634).

How important is it to know how many years a real estate attorney has practiced law?

It is important to note that in contrast to finding a traditional attorney, the number of years a given real estate attorney has practiced law is less important when compared to their specialty. As you identify whether they have worked with real estate investors in the past, you may also want to inquire what percentage of their practice involves working with real estate. This can help you identify an attorney with both experience and a strong understanding of the things you need.

Why do you need a real estate attorney?

Investors seeking to get started in the world of commercial real estate will find an attorney especially helpful when it comes to acquiring new properties or managing existing ones . Another reason a real estate attorney can be of value to your team is during the rehab process.

How to deal with real estate investment?

Real estate investment deals are often much different than traditional purchases. Between short sales and foreclosures, many investment deals can be time consuming and difficult to deal with. You need an attorney that knows how investors work in real estate. This could be changing the contract to offer protection or working with lenders to push the deal forward. As a bonus, your attorney may be able to put you in contact with fellow investors in your area. You can never have enough contacts. By having a mutual attorney, you can hit the ground running. In time, an attorney who works with investors can be a good source for deals directly. If they have a large investment portfolio, you should feel confident that they know the process and what to expect. Investment deals can be a handful. A good attorney can make it as smooth as possible for you.

How can a good real estate attorney help you?

Whether you are investing out of state or simply renting out the property next door, finding a good attorney can help protect you and your business through all aspects of a real estate transaction. The right real estate attorney will be skilled in the laws and regulations of your area and will be available to oversee the legal details of your real estate transactions. No matter what side of a transaction you are on, whether it be buyer or seller, a real estate attorney can assist you in several ways. That’s why it’s important to find the best person for the job. Keep reading to learn about the questions to ask real estate attorney professionals before working together.

Why do you pay an attorney up front?

Think of it this way: you are paying money up front to save yourself from future legal problems and, consequently financial problems down the road. That being said, there are several variables when it comes to real estate attorney fees that you will want to note. For example, be sure to determine whether you are paying a fixed rate or a time-based fee. Additionally, specify which services will be included in your given contract. Make note of which services your business warrants, and hire an attorney accordingly.

What does a closing attorney do?

During the selling and closing process of a home, a real estate closing attorney can help handle the title check and more for the property in question. They are also equipped to handle any unexpected events during the closing process .

Do real estate investors need an attorney?

In comparison, homeowners and real estate investors often rely on real estate attorneys for various reasons. Homeowners typically lean on attorneys during the home buying or selling process; however, real estate investors may employ a real estate attorney considerably more frequently. Those working with investment properties or property management may find a real estate attorney particularly useful in situations throughout their careers.

Why Would a Real Estate Lawyer Contact You?

In most cases, you probably didn’t expect a challenge worthy of a lawyer’s involvement to come up after closing. The lawyer might be coming to you on behalf of the buyer about a problem with the property that has only now been discovered.

What To Do Before Responding to Questions From A Real Estate Lawyer

Your goal in the phone call or initial email is ONLY to gather information calmly. If you are contacted by phone, ask the attorney to follow up with an email confirming the information needed. That way, you can respond by email and ask your own questions to gain as much detail in writing from the lawyer as possible.

Actions You Should Take To Avoid A Real Estate Lawsuit

While conducting transactions, make sure you document everything in writing. Ask the seller for full disclosures, or discuss any problems. Keep records of all communications, especially regarding what the seller disclosed to you. Keep copies of the relevant permit history or inspection reports.

How much do real estate agents take?

Remember, these agents will be taking as much as 7% of the closing price of your home, so make sure you are hiring someone who is prepared to work hard.

How long does it take to show your house in 2021?

Updated Jul 23, 2021. Ideally, if you're looking to call an agent, you should have the necessary financial considerations covered and be ready to show your home within weeks. This takes time, and depending on the shape of your home (and your finances), it could take a lot of time. First impressions are vital in real estate, ...

What is the process of getting pre-approved for a mortgage?

While both processes involve analyzing your debts, income and assets, only a pre-approval involves an official mortgage application . 2. Study the Market. The mortgage for which you are pre-approved will dictate the price-range of homes you should research.

How to prepare for an open house?

Preparing your home for an open house before a visit from an agent will help the agent to see the full potential of your home and allow him/her to better market the property. Pack away extra shoes and coats. Having these out in the open suggests a lack of closet/storage space. Remove any personal effects.

Why do you need a pre-sale inspection?

If you have an older home or are concerned about hidden surprises, you can have a pre-sale home inspection done so you can tackle repairs before buyers are canceling bids. At the very least, you'll have an estimate of the cost of repairs so prospective buyers know what they are getting into. 6. Scout Potential Agents.