According to the National Association of Realtors, approximately 5.64 million existing homes were sold in 2020.
SummaryState requirementsReview the purchase agreementTitle searchThe situation of the sellerThe closing phaseGet an advantage by hiring a real estate lawyerAre you about to buy or sell a house, but you are skeptical about the need to hire a real estate lawyer? When buying or selling a home, a lawyer can be much more valuable than you think. The real estate transaction process can take a different and easier path if you partner with an attorney.
Luckily for you, this article will uncover the telltale signs that should compel you to see a real estate lawyer.
A few states require one to have a real estate attorney when finalizing a real estate transaction. Below are some of the states that require real estate buyers or sellers to have an attorney during the closings;
The list goes on and on, totaling about 20 states. If you find yourself buying property in the above states, you have no choice but to hire an attorney as it is a state requirement. Both buyer and seller must have an attorney present when selling or buying a property.
Buying or selling real estate is probably one of the most important transactions you will make in life. Whether your state requires it or not, consider hiring an attorney.
Lawyers check the facts and do their due diligence to make sure the transaction is legal. Their responsibility in a real estate transaction involves drafting and reviewing documents.
In most cases, the real estate agent generally drafts and prepares the purchase contracts. A real estate attorney is helpful in reviewing the contract and terms and conditions. They check the fairness of the contract and whether their client's interests have been captured in the document to avoid future complications.
Estate agents are not allowed to write contracts from scratch; they are limited to the use of contract templates. A lawyer is needed in a unique situation that requires drafting the purchase agreement from scratch. You should involve your lawyer immediately after receiving the purchase agreement to give them time to review it.
Give the lawyer plenty of time to break down everything in the contract and check to see if anything sets off an alarm. This avoids complications down the line due to something that could have been avoided during the closing phase.
Remember that the terms of a purchase contract are negotiable; therefore, the lawyer can perform a legal review to see if the given terms are favorable. A purchase agreement is one of the most critical documents in a door-to-door sales transaction, and it should be treated as such.
Before closing the sale of the home, the attorney should assess the public records for the history of the property. It helps identify potential liens or issues that could negatively affect the new owner of the property. A title search is a standard routine that you should not skip, especially when buying a property.
You don't want a scenario where you don't do a title search only to find out later that the property has a lien. Some of the issues that the attorney may uncover by performing a title search include:unpaid mortgages or unpaid taxes. The main reason to do a title search is to check if the seller owns the property and how many people have owned it.
This may seem like a bit of a stretch, but the legal description and property identification number need to be cross-checked. If the wrong PIN code is used in the contract, it means that you do not own the house you intended to buy. Thus, it is essential 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 to a typo is something you don't want. People avoid using a lawyer, thinking it's something they can do; besides, everything looks simple. But the work a lawyer does to make sure your contract is correct is immeasurable.
There are complex and unusual situations in the housing market that may require you to consult a real estate lawyer. Imagine a scenario where the property you intend to buy is part of a divorce case. As a savvy investor, you will need to consult your lawyer about the complications of buying such a property and how to go about it.
The real estate market is full of unique and complex scenarios that will require hiring a lawyer. What happens if you buy a property that is not in your state or if you buy a property at an auction? Hire the best lawyer to do all the due diligence required before purchasing such properties.
The closing phase is the final stage of buying or selling a property, and it can be mentally draining. During this phase, closing documents are prepared and title passes to the buyer once the purchase price is finalized. In most cases, the amount comes from a mortgage lender.
During this phase, there is the buyer, the seller, the real estate agent and the lender's lawyer. If you're the only one without legal representation, you might lose control of what's going on as the scene can get a bit confusing. You should have a real estate investment lawyer in the closing phase to ensure your closing costs are fair.
Without a doubt, having a real estate lawyer in a real estate transaction has its advantages. Consider hiring a real estate attorney if you want peace of mind in such transactions.
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