The Telltale Signs That Are Urging You to Consult a Real Estate Lawyer

According to the National Association of REALTOR, about 5.64 million existing homes were sold in 2020.

Are you about to buy or sell a house, but you’re skeptical about the need to hire a real estate attorney? When buying or selling a home, an attorney can be far more valuable than you realize. The real estate transaction process can take a different and easier trajectory if you partner up with a lawyer.

Lucky for you, this article will divulge the telltale signs that should compel you to consult a real estate lawyer.

State Requirements

A couple of states require one to have a real estate attorney during the finalization of a real estate transaction. Below are some of the states that require real estate buyers or sellers to have an attorney during the closings;

• New York
• New Jersey
• Delaware
• Alabama
• Rhode Island
• Virginia
• Mississippi
• Kentucky
• Kansas

The list goes on and on, totaling about 20 states. If you find yourself buying a property in the above states, you don’t have a choice but to hire an attorney since it’s a state requirement. Both the buyer and the seller should have an attorney present during the selling or buying of a property.

Buying or selling real estate is probably one of the biggest transactions you’ll make in life. Whether your state requires it or not, consider hiring a lawyer.

Lawyers are fact-checkers, and they do their due diligence to ensure the transaction is lawful. Their responsibility in a real estate transaction involves drafting and reviewing the documents.

Review The Purchase Contract

In most cases, the real estate agent usually drafts and prepares the purchase contracts. A real estate attorney comes in handy to review the contract and the terms and conditions. They check the fairness of the contract and if their client’s interests have been captured in the document to avoid future complications.

Real estate agents aren’t allowed to draft contracts from scratch; they’re limited to using contract templates. An attorney is needed in a unique situation that requires drafting the purchase contract from scratch. You should involve your attorney immediately after you’re given the purchase contract to give them time to review it.

Give the attorney enough time to break down everything in the contract and crosscheck if something raises an alarm. It helps avoid complications down the line due to something that could have been avoided in the closing phase.

Remember, the terms in a purchase contract are negotiable; hence the lawyer can do a legal review to see if the terms given are favorable. A purchase contract is one of the most critical documents in a home sale transaction, and it should be treated as such.

Title Search

Before closing the home sale, the attorney needs to evaluate public records to know the history of the property. It helps identify potential liens or issues that might have adverse effects on the new owner of the property. A title search is a standard routine that you shouldn’t ignore especially when buying a property.

You don’t want a scenario where you don’t do a title search only to find out later the property has a lien. Some of the issues that the lawyer can uncover by doing a title search include; outstanding mortgages or unpaid taxes. The main reason for doing a title search is to verify if the seller is the owner of the property and how many people have owned it before.

It might seem a bit of a reach, but the legal description and the property identification number must get cross-checked. If the wrong PIN gets used in the agreement that means that you don’t own the house you intended to buy. Thus, it’s critical to involve a lawyer in such things to avoid typos that could cost you your money.

Yes, attorney fees can be expensive, but losing all your money due to a typo is something you don’t want. People avoid using a lawyer, thinking it is something they can do; besides, it all looks simple. But the work an attorney puts in to ensure your contract is okay is immeasurable.

The Seller’s Situation

There are complex and unusual situations in the housing market that might require you to consult a real estate attorney. Imagine a scenario where the property you intend to buy is part of a divorce case. As a smart investor, you’ll need to consult your attorney to know the complications of buying such property and how you can go about it.

The real estate market is full of unique and complex scenarios that will necessitate the need to hire a lawyer. What if you’re buying a property that isn’t in your state or buying a property in an auction? Hire the best attorney to do all the due diligence required before purchasing such properties.

The Closing Phase

The closing phase is the final stage in purchasing or selling a property, and it can be mentally draining. At this phase, the closing documents get prepared, and the title transfers to the buyer upon completion of the buying price. In most cases, the amount comes from a mortgage lender.

During this phase, there is the buyer, seller, real estate agent, and the lender’s attorney. If you are the only one without legal representation, you may lose control over what’s happening since the stage can be a bit confusing. You should have a real estate investment attorney in the closing phase to ensure your closing costs are fair.

Get An Edge By Hiring A Real Estate Lawyer

Without a doubt, having a real estate lawyer in a real estate transaction has its advantages. Consider getting a real estate attorney if you want peace of mind during such transactions.

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