why you should consult an attorney instead of a real estate agent

Attorneys can be very useful in reviewing contracts. Particularly if you are purchasing a home without a buying agent, you should have an attorney review the real estate contract to make sure that you will not be subject to terms that unfairly favor the seller. In addition, attorneys are bound by strict professional rules of confidentiality.

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Should you use a real estate agent or a lawyer for advice?

So, there you have it: Use a real estate agent for real estate advice and a lawyer for legal advice. At the time of writing, Elizabeth Weintraub, License #00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.

Should you use a lawyer when buying a home?

Even if you use a real estate agent (or a lawyer), it's wise to learn as much as you can about the home-buying process. For example, researching the market value of comparable homes in the area will protect you against over-aggressive agents who might urge you to bid high in your offer for a particular house.

Is it better to have a buyer's agent or seller's agent?

(The less scrupulous sellers' agents don't make it clear that they're working for both people, but if only one agent is involved in your transaction, it's fair to assume that the agent's loyalties are with the seller.) It's better to have your own agent—or, some experts assert, no agent at all—than to settle for dual agency.

Can a real estate agent advise a buyer to sue the seller?

However, real estate agents can't advise a buyer to sue the seller nor guarantee the deposit will be returned. If the agent knows the buyer's deposit is at risk, they might share a few situations about the way their past clients handled these matters. But in the end, they will be forced to suggest a buyer obtain legal advice.

Why do you need an attorney to review a contract?

Attorneys can be very useful in reviewing contracts. Particularly if you are purchas ing a home without a buying agent, you should have an attorney review the real estate contract to make sure that you will not be subject to terms that unfairly favor the seller.

Why do people hire real estate agents?

Buying a new home will likely be the largest and most significant investment of your life, which is why many people choose to hire a real estate agent to assist in the search and negotiate on their behalf. But it is often a good idea — and sometimes necessary — to also work with a real estate attorney.

What do homebuyers do instead of buying agents?

Instead of (or in addition to) buying agents, homebuyers may also employ real estate attorneys to represent their interests in the purchase of a home. Attorneys are experts in real estate law and can provide guidance on legal issues that may arise.

Why do you need a buying agent?

It's a relief and an assurance to have an agent who will walk you through the process and look out for your interests. A buyer's agent can be very helpful in hiring home inspectors, negotiating over who will pay for repairs, finding listings, and other matters which are everyday activities for agents but may be foreign to most homebuyers.

How do real estate agents get paid?

How Buying Agents Are Paid. In a typical arrangement, real estate agents are paid through commission — generally around 5% of the home's purchase price. In the common two agent situation (the seller's agent and the buyer's agent), the agents split the 5% and the commission is paid by the seller. Some buyers prefer to pay commission to ...

What is the job of a real estate agent?

Almost all sellers have seller's agents, whose job is to get the very highest price for the property. By working with a buyer's agent, buyers gain knowledge of the industry and familiarity with the particulars of a neighborhood, sellers, contractors, etc. Some states require the use of buying agents to ensure fair dealing between buyers and sellers.

How much do real estate attorneys make an hour?

Unlike real estate agents, lawyers are paid on an hourly basis, and therein lies the biggest drawback of hiring a real estate lawyer in the purchase of your home — attorney's fees can range from $175-$400 per hour.

How much does a lawyer charge for a consultation?

While lawyers typically charge a few hundred dollars an hour, a brief consultation with a lawyer is generally the way to go. It's much better for a buyer to obtain true legal advice than to try to squeeze it out of their agent just because they don't want to pay a lawyer.

Can a buyer's agent give legal advice?

Remember this: It is not that the buyer's agent does not want to help, it's that they can't give legal advice. Additionally, if they violated the law and expressed a legal opinion, a buyer could not rely on it anyway.

Can a real estate agent answer legal questions?

Real estate agents are not licensed to provide legal advice and cannot answer legal questions, even if they know the answer, without breaking the law. It's much better for you as a buyer to get true legal advice than to try to squeeze it out of your agent just because you don't want to pay a lawyer.

Can a real estate agent sue a buyer?

However, real estate agents can't advise a buyer to sue the seller nor guarantee the deposit will be returned. If the agent knows the buyer's deposit is at risk, they might share a few situations about the way their past clients handled these matters.

Can a real estate agent answer a legal question, even if they know the answer, without breaking the law

On the other hand, real estate agents are not licensed to provide legal advice. This means they cannot answer a legal question, even if they know the answer, without breaking the law. Note. An agent could potentially lose their real estate license if they tried to practice law.

Can a real estate agent sue a buyer for a return of earnest money?

However, real estate agents can't advise a buyer to sue the seller nor guarantee the deposit will be returned.

What are the obligations of a real estate agent?

A real estate agent’s obligations to his or her client are somewhat limited, and he or she may not necessarily be working in your best interest. For example, a real estate agent can represent both the buyer and the seller in the same transaction, or could even be the buyer, which obviously could leave you in ...

Who is Michael Farah?

Michael Farah is the founder and managing attorney of the Farah Law Firm. Mike graduated from the University of New Hampshire School of Law and is licensed to practice law in Texas and New York.

Do you need a realtor to buy a home?

Lastly, many transactions may not require a realtor or real estate agent to sell or help buy a home. This especially applies to “For Sale By Owner” arrangements, owner finance arrangements, and other direct buyer-to-seller or seller-to-buyer transactions.

Is a real estate attorney better than a real estate agent?

You can probably infer that a real estate attorney is better equipped to provide you with legal guidance than a real estate agent is. Agents can fill out forms, but they can neither draft forms nor modify existing forms. They also cannot provide legal advice regarding those “standardized forms”—only an attorney can do that.

Do real estate attorneys have a duty to their clients?

Attorneys, on the other hand, have a very clear duty to their clients. The real estate lawyer-client relationship provides for a high degree of privacy and confidentiality, which does not exist in a real estate agent-client relationship. A real estate attorney will be representing you and only you in the buying or selling of a house, ...

Comparing Agents to Attorneys in Real Estate Transactions

Do you know how real estate agents compare to attorneys in regards to what they can do for home sellers or buyers? When selling or buying property, it’s always best to rely on the experts, especially when it comes to legal paperwork, tax documents, and other vital processes.

Real Estate Agents

A real estate agent guides you through the entire process of selling or buying your property.

Real Estate Attorneys

In 21 states, the buyer must bring a real estate attorney to closing. Some states require both buyer and seller to have legal representation. In the remaining states, you can buy or sell a property without legal representation, and a real estate agent will suffice.

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.

Is a real estate agent required to be a lawyer?

What the Law Says. Every state has its own set of real estate laws. For the most part, a real estate agent's help is not legally required, though agents can help you with tasks that border on legal ones, such as preparing a home purchase contract. In a few states, however, such as New York and Massachusetts, only a lawyer is allowed to prepare ...

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 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.

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.

Can a lawyer close a title search?

In a few states, however, such as New York and Massachusetts, only a lawyer is allowed to prepare the home purchase documents, perform a title search, and/or close the deal.

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.)