when you need an attorney for real estate

When should you hire a real estate attorney?

Although it is always a good idea to consult with a real estate lawyer when conducting real estate transactions, it is critical to do so when the issues involved are complex. Complexities may arise in cases involving oil and gas rights, water rights, beachfront properties, properties subject to easements or restrictive covenants, historical properties, zoning disputes or adverse …

Do we need a real estate lawyer for buying a house?

Mar 16, 2021 · Here are four common situations where an investor like you may need the assistance of a real estate attorney. 1. When You’re Buying a Real Estate Investment. A lawyer can be extremely valuable in helping you evaluate deeds, titles, and the terms of contracts. Too often, clients call for help after they’ve made a purchase or signed a ...

Do you need a specialized real estate agent?

Jan 07, 2021 · 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 …

Do you need a realtor to sell your house?

Real estate is more than just buying and selling homes. There are a lot of other potential issues when it comes to real estate that goes beyond buying and selling, and this is where an experienced real estate attorney can make a big difference. These issues can include: Landlord-tenant disputes. Selective enforcement issues.

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 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.

What do real estate attorneys do at closing?

A real estate attorney can help you navigate the morass. He or she handles all of the financial paperwork with the home closing, including state and local taxes – paperwork that could overwhelm the average person. The attorney ensures the fees noted are appropriate.

Why do you need a real estate attorney?

This specialized lawyer can help solve issues involved in the complex world of closing on a house, such as dealing with and explaining all of the contingency clauses, and can even be brought in earlier to help negotiate issues that they might understand better than the client. Though the real estate attorney is yet one more cost amid many when buying a home, he or she can help avoid problems that would be even more expensive than the attorney’s fee down the line.

Is a home purchase a simple agreement?

Not every home purchase is a simple agreement between a buyer and a seller. The buyer might be dealing with a property that is owned by a bank. The seller could have inherited the property and has little understanding of its value or its history. In these and other atypical, complex cases, paying for the expertise of a real estate attorney is highly beneficial.

Can a real estate attorney look out for your interests?

Others involved in your homebuying purchase or home sale are not obliged to look out for your interests. A real estate attorney is. The lawyer can deal with any issues that arise and negotiate a productive solution or even amend a contract if necessary.

Why is a lawyer important?

A lawyer can be extremely valuable in helping you evaluate deeds, titles, and the terms of contracts. Too often, clients call for help after they’ve made a purchase or signed a contract that wasn’t in their best interest.

Who is Scott Royal Smith?

Scott Royal Smith is an asset protection attorney and long-time real estate investor. His law firm, Royal Legal Solutions, helps thousands of real estate investors and entrepreneurs in all 50 states protect more than $1.2 billion in assets. Since 2014, he has published over 1,000 posts and articles on BiggerPockets and has appeared on hundreds of podcasts.

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 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 could affect the timeline for closing on a home?

Your timeline for closing on the property could be affected by the sale of your own home or issues largely outside of your control, such as unexpected lender delays. Inspection. A home inspection can uncover many problems, and a seller and buyer could end up negotiating on who will pay for repairs.

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.

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 ...

Is it a good idea to consult with a real estate agent before buying a home?

Expert advice is always a good idea when you’re making a life-changing financial decision, and a sale or purchase of a home certainly fits that description. In addition to hiring a real estate agent before buying or selling, most buyers also will consult with an inspector and pay for an appraiser. Another expert who can play a pivotal role in ...

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.

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 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.