Whether you’re buying your first home or investing in your fifth investment property, you may be wondering if you need a real estate attorney. First of all, keep in mind that most real estate transactions cost at least $100,000.00 if not more, which means they can easily be the largest investment of your life.
A real estate agent will be able to handle most of a real estate transaction on their own; however, they are not qualified to answer questions or advise you on legal issues that arise. If you feel uncomfortable at any point in the process, or if you feel like the person on the other side of the contract is avoiding your questions, now is a good time to involve a real estate attorney.
An attorney will be able to perform a number of different functions, all of which will give you the confidence you need to stop the estate transaction or move forward. Either way, with the advice of an attorney, you can proceed knowing that he is fully informed and that all of his bases are covered. If you are a buyer’s attorney, they can help you understand the purchase contract, including how title works.
They can also verify that there are no easements, encumbrances, or covenants recorded against the property. They can prepare all the legal documents, clarify the term of the mortgage and work with the bank when necessary, an attorney can arrange title insurance, and they can attend the closing while carefully reviewing the documents before signing.
As the seller, your attorney can review the file and review the purchase or sale agreement, can address any title issues as they arise and act quickly to correct them, can attend the closing and review any documents before you sign them, and they can arrange the transfer of security deposits, among other functions.
With intimate knowledge of the law, your attorney will be able to review your contracts and thoroughly examine all aspects of the transaction. Your attorney will look for red flags that could cost you money after the deal has closed. Truth be told, when it comes to such a large investment, having a lawyer review the deal can save you a fortune in the long run by avoiding legal trouble before it starts. This is especially true if there are IRS liens on the property or any other defects for which you may be financially responsible.
