why do real estate buyer need an attorney

Why do you need a lawyer when buying a house?

• A real estate lawyer will perform a thorough check of the land title and approvals.
• A real estate lawyer will make sure the contract is not unfair.
• He will help you identify any contingencies you may have overlooked.
• The more complex the transaction, the more likely you are to benefit with the lawyer’s expertise.

Full Answer

Why should I hire a real estate lawyer?

Hiring a real estate lawyer can help buyers and sellers to avoid unforeseen complications, as they have an in-depth understanding of the law. This...

Can a lawyer represent buyer and seller?

Ideally, the lawyer should represent only one party. The property buyer and the seller should have their own separate lawyers.

Are lawyers worth the money?

Although one will have to pay the additional charges towards the lawyer’s fees, it will ensure that there are no complications in the deal, which c...

Buying A Home

In a typical real estate sale in Somers and the surrounding areas in Westchester, the seller retains a real estate agent who is tasked with finding potential buyers. Once a buyer is interested in making an offer, the seller and buyer will conduct negotiations and the realtors will usually handle the discussions representing the respective parties.

The Contract of Sale

The Contract of Sale is one of the most important documents in the transaction. Finding a local real estate lawyer is crucial in drafting, reviewing, and negotiating the contract in order to reflect the home buyer's desires and interests. There are many issues that may need to be addressed in the contract:

Title Search

After the Contract of Sale is signed, it is necessary to establish the state of the seller's title to the property to satisfy the buyer and the lender. A title report is ordered from an abstract or title insurance company.

The Closing

The closing is the most important event in the transaction. The deed and other closing papers must be prepared. At the closing, title passes from seller to buyer, who pays the balance of the purchase price. Frequently, this balance is paid in part from the proceeds of a mortgage loan.

Important Of Having A Real Estate Lawyer At Closing

The closing process can seem confusing. There may also be last-minute disagreements over delivering possession and personal property or the adjustment of various costs, such as fuel and taxes. Without a good New York real estate lawyer, your rights may be at risk when buying real property.

Why do you need an attorney for a real estate transaction?

There is a clear mandate against conflict of interest and the real estate attorney can only represent the buyer or the seller.

Can a lawyer represent buyer and seller?

Ideally, the lawyer should represent only one party. The property buyer and the seller should have their own separate lawyers.

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, also known as a real estate lawyer, 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 or short sale.

How Much Does A Real Estate Attorney Cost?

How much you’ll spend paying your real estate attorney (or attorneys) will depend on what services they’ve provided for you and who is responsible for that particular closing cost. 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 real estate contract has been negotiated.

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.

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.

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, ...

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.

Why Do You Need a Real Estate Attorney?

Therefore, you need someone who is protecting your best interests and offering sound legal advice throughout the process.

What is the role of an attorney in real estate negotiations?

An attorney performs due diligence to protect the client’s best interest while giving the client legal advice regarding the real estate matter.

How Much Does a Real Estate Attorney Cost?

Real estate attorneys charge different fees for services. Some real estate lawyers charge flat fees, while some lawyers charge by the hour. Before hiring a real estate attorney, make sure that you discuss the fees for each service and payment arrangements.

What is real estate lawyer?

Real estate lawyers handle a variety of matters. A commercial real estate attorney handles matters related to commercial property, such as developing retail stores, office buildings, and entertainment venues. A residential real estate attorney handles matters related to single-family and multi-family homes. Some real estate lawyers handle transactions involving all types of real property. Other real estate law firms may focus on issues related to real estate taxes or setting up real estate LLCs.

Why is it important to have an attorney review a real estate contract?

It is important to have an attorney review a real estate agreement before signing the contract. Breaching a contract (failing to perform the terms and conditions within the contract) can result in costly real estate litigation and damages.

What are the elements of a real estate contract?

The basic elements of contracts include an offer, acceptance, consideration, mutual assent, capacity, and legality.

What happens if a real estate contract is not drafted correctly?

However, if a real estate contract is not drafted correctly, the parties could incur substantial costs and time attempting to enforce the terms of the contract. Real estate lawyers have extensive experience drafting and reviewing real estate contracts.

What does a real estate lawyer do?

Real estate lawyers typically review all the legal documents and issues related to a transaction. This includes looking at a legal review of the Agreement of Purchase or Agreement of Sale. They ensure property taxes are up-to-date, and that there are no claims or liens registered or on file against the property. They also confirm if there is a valid property title and calculate what land transfer tax is due upon closing, as well as any other tax implications. If there is any need to litigation involving the purchase or sale, a lawyer experienced in real estate law can also point you in the right direction.

How much do real estate lawyers cost?

While hiring a real estate lawyer comes with upfront costs, the work they do will ultimately benefit you in the long term. The work they do helps property owners, or those who want to be property owners, avoid additional unnecessary expenses, along with any potential legal trouble down the line. Their understanding of the ins and out of real estate law can same you time, money, and grief.

Can you close a real estate transaction with a lawyer?

The answer is a resounding yes. Historically, closing a real estate transaction would involve lawyers attending at a Land Registry Office to conduct title searches. On the day of completion, lawyers from both parties would meet at the LRO to exchange documents and keys and register the transfer.

Is buying a house a big decision?

Buying a house is a big decision and is likely the most expensive purchase most people will make in their lives. So, it makes sense to get some legal guidance from an expert in real estate law. Even in more sophisticated commercial real estate transactions, a real estate lawyer with a strong practice is vital to the process ...

Is a real estate agent an independent contractor?

While a real estate agent can be a great asset and know a lot by having studied for and passed their real estate licensing exam, remember that they are independent contractors who stand to benefit from whenever real property is bought or sold, whatever the price or conditions.

Why do mortgage lenders require a buyer to use a real estate attorney?

Mortgage lenders can require a buyer use a real estate attorney in order to avoid mistakes. A buyer who is required to use an attorney for a loan and fails to may not be able to obtain funding for the purchase.

What is real estate attorney?

A real estate attorney is a lawyer whose primary practice is real estate. The lawyer may work in other areas of law, but the main focus is on residential or commercial real estate transactions.

How much does a real estate attorney charge?

The fees for real estate lawyers can be a set price, like $800, or a rate per hour spent on the deal, depending on the area.

Can a lawyer be a real estate agent?

Some states allow any lawyer admitted to the local bar association or recognized by the state as an attorney to engage in real estate transactions with minimal or no additional training . Attorneys who are unfamiliar with the complexities of real estate transactions in the area may encounter problems when overseeing a real estate transfer.

Can a real estate attorney cancel a failed inspection?

Real estate attorneys can protect a buyer or seller from financial loss. A sales contract that does not have a clause allowing termination for a failed inspection can cost a buyer hundreds of dollars to cancel if the home is found to have a major problem, such as mold. Loan documents with errors can cost the buyer time and money to resolve after the papers are signed.

Can a seller use a real estate attorney?

Sellers using a real estate attorney do not have to handle problems with the home's title alone. A title defect can be cured by an attorney who is familiar with the issue. An attorney will ensure a seller's interests are represented in the sales contract.

Do real estate attorneys check the chain of ownership?

Not all real estate attorneys examine title, or check the chain of ownership for errors or potential liabilities. Some attorneys outsource title examining to a third party, such as a title agency.

What does a real estate lawyer do?

A real estate lawyer will make sure that the contract and rider you agree to will protect you from misrepresentations made by the seller, defective conditions of the home, the inability to obtain a mortgage, and other potential problems. He or she will review every word in the contract before signing off on anything. Real estate law is highly complex, and most people are not aware of what they don’t know about the process. A lawyer’s experience and their knowledge of what could happen if there are any exceptions allow them to provide much more guidance than anyone else would be able to do so and can provide you with much-needed peace of mind.

What is a seller's attorney?

The seller’s attorney is involved beyond the initial contract negotiations. He or she will be involved in the inspection process, certain title aspects, credit, repairs, and price reductions, and much more. Most importantly, the seller’s attorney is only interested in protecting the seller’s rights, not yours. By hiring your own lawyer, you will have someone on your side to help you navigate through the purchase process and to protect you.

What does a title lawyer do?

Your lawyer will review title documents before closing. This includes reviewing the title insurance policy and the complete title report. For example, he or she will make sure that a claim on the property has been satisfied or released and the there are no other issues clouding title to the property. If there are any questions about the title (such as an undisclosed lien), your lawyer can help you obtain information from the seller and advise you on how to proceed.

What is a contract when buying a home?

Contract law is a vital component of home purchases because it governs the relationship between buyers and sellers. The purchase agreement is the contract that lays out the terms for the sale of the property. It defines what both parties agree to do or not do for the sale to go through.

Can an attorney address a closing?

Sometimes issues may arise at the closing that your attorney can address. For example, the seller’s mortgage lender may not be in attendance, and the closing agent refuses to proceed. Your attorney can call the other party, explain your situation, and get a decision or agreement on what needs to happen next so that you can close.

Can an attorney negotiate an easement?

Your attorney can negotiate a deal with the seller, and in some cases, the easement holder so that you can purchase the property and still have use of the easement.

Can a real estate agent give legal advice?

Attorneys love working with real estate agents, especially when the deal involves first-time homebuyers. That said, while your real estate agent can help you find your dream home, assist with inspections, and negotiate pricing or the aspects of the deal, they are not qualified or permitted to provide you with legal advice. More specifically, they are also not allowed to give you an opinion about the legality of a contract or rider that they may be recommending you sign. You can rely on your real estate agent for a lot when it comes to buying your first home, but your agent cannot provide you with the same guidance, protection, or advice that an attorney can.