Frequently Asked Questions about Real Estate
- If I have a realtor, why should I hire an attorney to represent me when buying or selling real estate?
- If I am buying or selling real estate, at what state should I hire a lawyer?
- Should I have an attorney represent me at closing?
If I have a realtor, why should I hire an attorney to represent me when buying or selling real estate?
Many, if not most, realtors are "transactional" realtors. This means that they do not represent either the Buyer or the Seller but rather their role is to try to negotiate a contract between the two parties. Realtors sometimes will only disclose the positive aspects of the deal to get the Parties to agree and they fail to disclose the negative consequences that the Buyer or Seller may suffer if the deal goes through or falls apart. These things may include negative tax consequences, loss of costs advanced for inspections and/or financing, etc. It is the lawyer's job to make sure that his client is aware of all of these possible twists and turns and to protect the client from these in advance.
If I am buying or selling real estate at what stage should I hire a lawyer?
As is typically the case in most matters when you are trying to protect yourself, "the sooner, the better." It is advisable to have an attorney review all contracts, including listing contracts with realtors, before you sign them. In most instances having a contract reviewed after you sign has no value except to let you know what you should have taken out or what you should have put in the contract. It is usually too late to do anything about it at that point.
Should I have an attorney represent me at the closing?
The sale or purchase of a piece of real estate is usually the single largest transaction in which most people will be involved. An error in the closing process could result in the loss of a substantial amount of money or, worse yet, in litigation that could drag on for years. Although many transactions are now closed by title companies it is advisable to let a lawyer conduct the closing. If your lawyer conducts the closing, then he or she is involved in the entire process and is looking out for your best interests. Many people are not aware that attorneys will likely charge much less for conducting a closing and writing title insurance than a title company would. In addition, most title insurance agencies hire employees who have no training in legal matters and simply go through the same procedures with every closing; these people would be unprepared to handle any unique aspects of your transaction.