why should a real estate agent hire an attorney in a short sale

Why is it important for buyers and sellers to consult an attorney before signing a sales contract?

A lawyer can review these documents and ensure their compliance with the contract terms. Furthermore, title companies prepare numerous other documents which parties are asked to sign at closing, many of which protect just the title company. Buyers and sellers should understand these documents before signing them.

What does a real estate attorney do for a buyer?

A real estate attorney's role is to ensure the legal transfer of property from seller to buyer. These attorneys handle tasks like preparing or reviewing documents, ensuring that the title is clear and facilitating the transfer of funds.Apr 6, 2021

How do you negotiate a short sale?

7 steps to easily negotiating the purchase of a short sale propertyCommunicate and Set Expectations.Gauge the Market.Advise About Lowball Offers.Know that Short Sales Are More Attractive When You Have a Cash Buyer.Once You Make the Offer, Be Patient.Remember That You're Negotiating With the Lender.Be Resolute.May 15, 2017

Who are the parties to the short sale purchase agreement?

A short sale is a pre-foreclosure residential real estate transaction where the owner of the mortgage loan, the lender or lien holder (hereinafter sometimes "Lender"), agrees to (i) allow the home owner to sell his or her property for less than -- or "short" of -- the outstanding amount owed on the mortgage loan, and ...

What should I offer on a short sale?

How to Make a Short Sale OfferOffer a Strong Earnest Money Deposit.Check the Comparable Sales.Don't Ask for Special Reports or Repairs.Give the Bank Some Time.Assure the Seller You'll Wait.Offer to Pay the Seller's Fees.Shorten Your Inspection Period.Provide a Strong Preapproval Letter.

Will the bank take less on a short sale?

If the list price is too low, the bank will reject the short sale. Moreover, a low list price could be a strategy used by the listing agent and seller to entice multiple offers on the short sale. In short, the list price of a short sale could mean nothing at all.

Can you get a good deal on a short sale?

The biggest benefit to buying a short sale home is the chance of finding a great deal. And unlike with a foreclosure, a short sale home is likely to be in good condition. Often, the current owner will be still in residence and keeping up basic maintenance. A foreclosure, by contrast, might be in disrepair.Jan 14, 2021

What are the risks of a short sale?

Potential additional fees While the price of the home may be low, a foreclosure or short sale often comes with additional transaction costs. With a foreclosure, you may have to pay transfer taxes as well as any superior liens on the property. You may also have to pay an additional fee to the foreclosure company.Jun 7, 2017

Do short sales hurt your credit?

A short sale can hurt your credit scores because you're settling your mortgage loan for less than you owe rather than repaying the full amount as agreed.Apr 30, 2021

What is the process of a short sale?

To short sell a home, the seller will need to file a hardship letter with their lender stating why the mortgage can't be fully repaid, along with documentation such as pay stubs and tax returns. ... A short sale home is usually sold for less than – or “short” of – the remaining amount of the mortgage loan.Dec 13, 2021

Is real estate transaction complicated?

It’s a valid question with answers that can be as complicated as real estate transactions themselves. In fact, it is precisely because of the complexities found in most real estate transactions that the need for experienced legal counsel becomes obvious.

Is a real estate agent a lawyer?

The simple answer is agents aren’t lawyers and lawyers aren’t agents. It is the distinction between real estate agents and lawyers that is at the heart of both of these questions. The fact of the matter is, if you want your real estate transaction to be as surprise and trouble-free as possible, you need both representatives in your corner.

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.).

What does it mean when you are selling a house?

You’re selling a property that is in some state of distress. 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.

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 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.

19 Reasons to Hire a Real Estate Lawyer When Buying or Selling Real Estate in Florida

1. Does the property have illegal additions or illegal improvements? Buyers need to know if local codes and state regulations have been followed, and if they haven’t, what to do about it (should the closing occur?).

What Should You Do?

If you are buying or selling a home in Florida, a good piece of advice is to speak with an experienced Florida real estate lawyer to learn about your rights, including those related to disclosures, inspections, and title insurance.

Why do you need a real estate agent?

One of the best reasons to hire a real estate agent is that the sellers are likely to use their own agent— and you want to keep that agent from taking over the process. In fact, the seller's agent might pressure you to let him or her represent both seller and buyer, in a " dual agency " relationship that primarily benefits the seller.

How much commission does a seller pay?

The seller typically pays the commission to both the seller's agent and your agent—usually around 5% of the sales price, to be split between the two agents. This percentage isn't cast in stone, however. For example, the seller might negotiate the percentage down if the house is particularly expensive.

Do not sell personal information?

Do Not Sell My Personal Information. It's no secret that real estate agents earn high commissions. Although the commission is usually paid by the seller, the cost may be indirectly passed on to you. And real estate lawyers charge exorbitant hourly rates.

Do you need an attorney to buy real estate?

Except in states where it's mandated, an ordinary real estate transaction doesn't require an attorney's help. By now, real estate transactions are so standardized that most people in your state will use the exact same purchase contract, just filling in a few blanks.

Can a real estate agent answer a legal question?

However, legal issues might arise that your real estate agent can't answer. In that case, you'll need an attorney's help. Although good agents know a lot about the negotiating and contracting part of the process, they can't make judgments on legal questions. For example, what if your prospective new home has an illegal in-law unit ...

Do real estate agents get paid?

Real estate agents normally work on commission, not salary. They receive their slice only after your home search is over, the contract negotiated, and the transaction complete. (In many cases, they end up doing a lot of work for nothing, perhaps because the buyers lost interest or can't close the deal.)