when buying a home do you need a realtor or a lawyer

In some circumstances, though, like if you’re selling for sale by owner or you’re dealing with unique property issues, it’s in your best interest to hire a real estate lawyer. But when you’re buying a single-family home in a straightforward transaction, a real estate agent can usually handle the sale on their own.

Full Answer

Do you need a lawyer to buy a home?

Do I need a realtor to buy a home?

Why do I need a real estate attorney?

Jun 20, 2016 · Seeking the advice of a lawyer when buying a house is a very good idea from the time you decide to sell or to buy a home until the actual closing. You don't always need a lawyer to buy a house, but real estate attorneys provide many valuable services and can actually help you save money in the long-run or avoid buying the wrong property.

Can a real estate agent sell a house without a lawyer?

Jan 12, 2021 · If you’re wondering whether you need a Realtor to buy a home, the short answer is no. You might be hesitating to work with one because you don’t want to be saddled with Realtor fees, but typically,...

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.

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.

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 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.)

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.

What is the contract between a seller and a real estate agent?

In the typical home purchase, the seller enters into a brokerage contract with a real estate agent, usually in writing. When the broker finds a potential buyer, negotiations are conducted through the broker, who most often acts as an intermediary. Once an informal agreement is reached, buyer and seller enter into a formal written contract for ...

What is a purchase agreement?

The purchase agreement is the single most important document in the transaction. Although standard printed forms are useful, a lawyer is helpful in explaining the form and making changes and additions to reflect the buyer's and the seller's desires. There are many issues that may need to be addressed in the purchase agreement; below are some common examples: 1 If the property has been altered or there has been an addition to the property, was it done lawfully? 2 If the buyer has plans to change the property, may what is planned for the property be done lawfully? 3 What happens if a buyer has an engineer or architect inspect the property and termites, asbestos, radon, or lead-based paint is found? 4 What if the property is found to contain hazardous waste? 5 What are the legal consequences if the closing does not take place, and what happens to the down payment? This question raises related questions: Will the down payment be held in escrow by a lawyer in accordance with appropriately worded escrow instructions? How is payment to be made? Is the closing appropriately conditioned upon the buyer obtaining financing?

What is the most important document in a transaction?

The purchase agreement is the single most important document in the transaction. Although standard printed forms are useful, a lawyer is helpful in explaining the form and making changes and additions to reflect the buyer's and the seller's desires.

What is title search?

The Title Search. After the purchase agreement is signed, it is necessary to establish the state of the seller's title to the property to the buyer's - and the finance institution's - satisfaction. Generally, a title search is ordered from an abstract or title insurance company. In some states, and in outlying areas of others, ...

What is a closing statement?

A closing statement should be prepared prior to the closing indicating the debits and credits to the buyer and seller. An attorney is helpful in explaining the nature, amount, and fairness of closing costs.

What is the closing of a transaction?

Closing the Transaction. The closing is the most important event in the purchase and sale transaction. The deed and other closing papers must be prepared. Title passes from seller to buyer, who pays the balance of the purchase price. Frequently, this balance is paid in part from the proceeds of a mortgage loan.

How to buy a house without a realtor?

A buyer’s agent helps homebuyers in a host of other areas, as well. Here are some of the tasks you’d have to do yourself if you were to buy a home without a Realtor: 1 Find homes that match your budget and needs. Real estate search sites give you a sampling of what’s available, but you’ll have to research whether asking prices are justified based on comparable home sales in the area. 2 Dig up facts on a neighborhood, including ones that a seller might not disclose that could be important to you. 3 Negotiate an offer, including the price and other clauses and contingencies in the purchase agreement. 4 Navigate the home inspection, and negotiate repairs or credits with the seller. 5 Decipher paperwork that could be filled with complex jargon and terms you don’t understand. 6 Request and review seller disclosures. You might not know what to ask for or what sellers in your state are required to disclose.

Can you negotiate the price of a home with a listing agent?

As the buyer, you might be able to negotiate the price of the home with the listing agent since you’re saving the seller from having to pay your agent’s commission. Even though the seller pays the commission, the buyer’s agent’s commission is often baked into the purchase price — but, if there’s no buyer’s agent, then the seller might be able to knock that fee off the purchase price.

What is a realtor?

Real estate agents (some of whom are Realtors, members of the National Association of Realtors, or NAR) are licensed professionals who work on your behalf and advocate for your interests. In most cases, sellers have a real estate agent working for them — a listing or seller’s agent — so you’ll want someone on your side, a buyer’s agent, who also has your back in negotiations and can help you understand how to make an offer on a home.

What is a buyer's agent?

A buyer’s agent helps homebuyers in a host of other areas, as well. Here are some of the tasks you’d have to do yourself if you were to buy a home without a Realtor: Find homes that match your budget and needs.

What to bring to a closing?

There are a few important items you’ll need to bring to the closing. Have these items ready well in advance so you don’t run into any issues on the big day: 1 Certified or cashier’s check: You should be notified at least one day in advance of the checks you’ll need to bring to the closing, including who they should be made payable to and the exact amount. Personal checks are usually not accepted, so you’ll need to go to your bank for an official check. 2 Proof of homeowners insurance: You’ll need to show proof that you have secured a policy to insure your home on the day of the closing that is good for at least one year. 3 Government-issued photo ID: Make sure you have a current driver’s license or passport on you.

Why do you need an attorney for a home purchase?

Here are a few reasons you might need or want an attorney to be part of your home buying team: State or lender requirement: Every state has slightly different laws regarding real estate transactions, and some states consider certain actions that are part of the process to be “practicing law.”. These regulations are often meant to prevent real ...

What is a real estate attorney?

A real estate attorney is someone who is licensed to practice real estate law, meaning they have the knowledge and experience to advise parties involved in a real estate transaction, such as a home sale.

How much does a real estate attorney charge?

If you want your own attorney in addition to the one required by your lender, you’ll also pay for any services they provide you. How and how much a real estate attorney charges will vary, but here are some basic ranges to give you an idea of what you’ll spend: 1 Fixed hourly rate: A real estate attorney who charges an hourly rate may charge $150 – $350 per hour, but this can vary a lot depending on how experienced the attorney is and what area you’re in. 2 Fixed rates for specific services: They may also charge a flat fee for the particular services they provide. For example, a real estate attorney might charge $500 – $1,500 to conduct a home closing. Their fees may also depend on the sale price of the property in question.

Who can represent the buyer in a home purchase?

In a home purchase transaction, both the buyer and seller can hire an attorney to represent their interests during the process. Or, in the case where an attorney is overseeing a closing where the home is being purchased with a mortgage loan, the attorney may actually represent the mortgage lender.

Who is in charge of closing a home?

In some cases, a real estate attorney is also the person who’ll be in charge of your closing. In a home purchase transaction, both the buyer and seller can hire an attorney to represent their interests during the process. Or, in the case where an attorney is overseeing a closing where the home is being purchased with a mortgage loan, ...

Is buying a house hard?

Buying a house or property is not hard at all. Anyone can go through the details of the process. Surely there are some real sellers of the property who are looking for a real buyer to sell their property with no mediation. It is worth saving a huge amount of money if there is a good combination between buyer and seller with no realtor ...

Why is a home inspection important?

The home inspection is very important to issue because there are some land laws, building codes and update rules and regulation which are required to follow when the building was made. A home inspector is a person who deals with this issue and makes a report of the building property after inspection.

What is valuation report?

A valuation report is a computer-based record of the property that explains the property. Different journal and survey center records information about good sides and future potentiality of the area where you are here to buy a property.

How much does a home inspection cost?

The report should be positive enough to make sure the structural design, building code, and other related issues are in compliance with local and state law. A home inspector may charge for $300 to $600, which may vary according to different states.

What is a home inspector?

A home inspector is a person who deals with this issue and makes a report of the building property after inspection. The report should be positive enough to make sure the structural design, building code, and other related issues are in compliance with local and state law.

What is financial news hub?

It is also easy to evaluate the property. So financial news hub cover about the property-related information. They also clearly explain tax and the property. So it can be said that it is a type of market research and market analysis which can enable you to be exact in comparing price in relation to the property.

What is real estate lawyer?

A real estate lawyer is trained to handle these problems and has the most experience to deal with them.

Who does a broker serve?

A broker generally serves the seller, and the lender is obtained by the buyer. Both want to see the deal go through since that is how they will get paid. However, neither can provide legal counsel. If you want peace of mind when making one of the biggest purchases of your lifetime, you should consider speaking with an experienced real estate attorney.

What is a purchase agreement?

The purchase agreement is the single most important document in the transaction. Although standard printed forms are useful, a lawyer is helpful in explaining the forms and making changes and additions to reflect the home buyer's and the seller's desires. There are many issues that may need to be addressed in the purchase agreement, such as: 1 If the property has changed or if there has been an addition to the property, was it done lawfully? 2 If the buyer has plans to change the property, can that be done lawfully? 3 What happens if a buyer has a home inspector inspect the property and termites, asbestos, radon, or lead-based paint is found? 4 What if the property is found to contain hazardous waste? 5 What are the legal outcomes if the closing does not take place, and what happens to the down payment? 6 Will the down payment be held in escrow by a lawyer according to the escrow instructions? How is the payment to be made? Is the closing conditioned upon the buyer obtaining financing?

Who is present at closing?

Those present at the closing often include the buyer and seller, their respective attorneys, the title closer (representative of the title company), an attorney for any lending institution, and the real estate broker.

What is a title search?

Title Search. After the purchase agreement is signed, it is necessary to establish the state of the seller's title to the property to satisfy the buyer and the financial institution. Generally, a title search is ordered from an abstract or title insurance company. In some states, title insurance is not typical.

Can a lawyer help you buy a house?

If you’re buying a home, you may find that there’s a problem with the title that you need worked out before you can purchase. For example, Ferrer said, perhaps the home was inherited, but not all the siblings who inherited it signed off on selling the property. A lawyer can help you negotiate and move forward with the purchase.

What to do if you are selling by owner?

If you’re doing a For Sale By Owner, make sure you get a lawyer to help you draft the proper documents for the sale. A lawyer’s help is absolutely necessary in this situation to make sure the terms of the deal are legal and fair.

Why is a real estate attorney important?

A good real estate attorney provides a backstop for your real estate agent, finding loopholes in the purchase agreement, saving you money with contingencies, and maybe even insulating you from lawsuits years down the line. Let’s go over some of the situations where hiring a real estate attorney is a good move, the responsibilities ...

How much do real estate attorneys make an hour?

Real estate attorneys are paid by the hour — market rates are between $150 and $350. You may be able to negotiate a flat rate, or a cap on the number of hours they work on your behalf.

What are the benefits of being an agent?

A great agent doesn’t just help you buy or sell a property; they also offer a sympathetic ear, gentle advice, and all around emotional support. A huge financial transaction can be a huge source of stress, and a good agent knows how to reassure their clients.

What does a good agent do?

A great agent doesn’t just help you buy or sell a property; they also offer a sympathetic ear, gentle advice, and all around emotional support. A huge financial transaction can be a huge source of stress, and a good agent knows how to reassure their clients.

Why do agents make more money?

Because most agents work on commission, they make more money the higher the final sale price goes. That’s great if your priority is extracting every possible dollar from your sale. But sometimes sellers just want a quick sale, or want their property to pass onto someone who appreciates it.

What is a purchase agreement?

The purchase agreement is a legal contract that outlines the rights of the seller and the buyer. A lawyer can review this contract and make sure you’re receiving all the protections and assurances that you should be. Signing an incomplete or sloppy purchase agreement can leave you vulnerable later, even if you abide by your state’s disclosure laws.