when to engage a real estate lawyer

Full Answer

When should you hire a real estate lawyer?

If you have any real estate matters listed above, it is a wise decision to consult a real estate lawyer for legal advice. Real estate matters involve complicated laws, including real property rights, contract laws, eminent domain, adverse possession, and other legal areas.

Do I need a real estate attorney when buying or selling?

In addition to hiring a real estate agent before buying or selling, most buyers also will consult with an inspector and pay for an appraiser. Another expert who can play a pivotal role in the transaction is a real estate attorney.

How do I choose a real estate attorney?

You want to choose an attorney with experience in the specific real estate matter. For example, if you have an issue with a tax matter, search for a real estate tax attorney.

Do real estate lawyers charge by the hour?

Some real estate lawyers charge flat fees, while some lawyers charge by the hour. Before hiring a real estate attorney, make sure that you discuss the fees for each service and payment arrangements. When to Hire a Real Estate Attorney?

What is a real estate agent?

Real estate agents are some of the most well-connected professionals in the real estate game. If your social circle doesn’t include any attorneys, consult with your agent. He or she would certainly know some trusted people who he can recommend to you.

What is the NY Bar Association database?

The NY Bar Association maintains a current database of all attorneys who are authorized to practice law in the state. The database will also provide information about each attorney’s field of law and will provide any negative reports or issues filed against the attorney.

Is a real estate attorney a dime a dozen?

Attorneys are said to come to a dime a dozen. But finding a good one takes some effort. If you are about to do any real estate deal and are in need of a good real estate attorney, here are some tips for finding one.

Can family and friends recommend someone?

Never underestimate family and friends–it’s possible they could recommend someone they’d worked with on a property deal. Better still, they may have a real estate attorney in their network to whom they can refer you.

What is a real estate lawyer?

A real estate lawyer is licensed to practice law and specializes in real estate transactions. A real estate lawyer is familiar with all aspects of the home purchase process and can represent buyers, sellers or lenders. In states where a lawyer is required to be present at closing, it’s possible that the lawyer is there solely to represent ...

Why is it important to have a lawyer in a negotiation?

This is important because when you’re in the middle of a potentially contentious negotiation that needs to be resolved quickly, you’ll want the lawyer to be available to advise you and negotiate with the other party.

What are some situations that are unusual and might require an attorney’s advice and negotiating skills?

Here are some situations that are unusual and might require an attorney’s advice and negotiating skills: You’re buying a home that is part of a special type of sale, such as an estate sale, short sale, auction or purchase from a bank. You’re purchasing a home that’s in another state.

What could affect the timeline for closing on a home?

Your timeline for closing on the property could be affected by the sale of your own home or issues largely outside of your control, such as unexpected lender delays. Inspection. A home inspection can uncover many problems, and a seller and buyer could end up negotiating on who will pay for repairs.

What is closing on a home?

Closing. The moment you’ve been waiting for— closing on a home sale or purchase —often involves dozens of pages of legal documents to review. A lawyer can help both the seller and buyer navigate the review, which can be especially intimidating and confusing to a first-time homebuyer.

What is the most important document in the home sale process?

It can help you avoid potential problems down the line by making the contingencies as favorable to you as possible. The contract is the most important document in the home sale process, and it includes several negotiable issues. Some of the most important issues in the purchase contract involve: Timing. Your timeline for closing on the property ...

Can a lawyer review a purchase contract?

Although real estate agents usually play a central role in preparing purchase contracts, a lawyer could provide a review of the purchase contract terms. What’s more, real estate agents are generally limited to filling out contract templates, rather than drafting them from scratch.

Whom to Call?

Whom to Call? If you decide you need a lawyer, start asking around to friends and family to find a recommendation. Also ask your other advisors--accountant, bank officer, financial planner, business associates, etc. Your best chances of finding someone who you can work with is by getting a referral from someone you know.

Make the Call

Make the Call Call. Call more than one if you want. If you have a name, talk to them specifically, or leave a voicemail indicating you have a legal matter and want to discuss it. If you don't have a name, ask the receptionist who answers to give you to someone handling your type of matter (i.e. real estate, contract dispute, etc.).

Engage the Lawyer

Engage the Lawyer Most states require lawyers to send engagement/fee letters. They set out the terms of the representation--basically what you pay, when fees are due, retainers, etc.

Provide Your Lawyer with Information

Provide Your Lawyer with Information Remember that your lawyer knows nothing at this point except what you have told them in your initial calls or meetings. Ask what you can provide to help the situation along, get them up to speed, etc.

Who can recommend a real estate attorney?

Friends, family members, realtors, and bankers can recommend real estate attorneys in your area. Even with recommendations, make sure that you research the lawyer and read reviews. You want to choose an attorney with experience in the specific real estate matter.

Why is it important to have an attorney review a real estate contract?

It is important to have an attorney review a real estate agreement before signing the contract. Breaching a contract (failing to perform the terms and conditions within the contract) can result in costly real estate litigation and damages.

What is the role of an attorney in real estate negotiations?

An attorney performs due diligence to protect the client’s best interest while giving the client legal advice regarding the real estate matter.

What are the elements of a real estate contract?

The basic elements of contracts include an offer, acceptance, consideration, mutual assent, capacity, and legality.

What happens if a real estate contract is not drafted correctly?

However, if a real estate contract is not drafted correctly, the parties could incur substantial costs and time attempting to enforce the terms of the contract. Real estate lawyers have extensive experience drafting and reviewing real estate contracts.

What is the job of an attorney?

An attorney’s job is to protect his or her client’s best interest. The attorney cannot do that when the attorney represents parties that have adverse concerns. Throughout a real estate transaction, the attorney provides sound legal counsel to his or her client.

Can real estate disputes be settled?

Those issues are generally negotiated and settled without litigation. However, some disputes cannot be settled through negotiation. Real estate attorneys who handle litigation matters are experienced trial lawyers who understand real estate law, in addition to contract law and trial procedures.

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.

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 ...

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 it legal to buy a home?

Buying a home isn’t just a simple purchase; it’s also a legal transfer of a property from one entity to another. Because the legal side of this transaction can be so complex, sometimes it makes sense (or is even required) for home buyers or sellers to enlist an attorney who can look out for their best interests.

Do you have to have an attorney at closing?

If your mortgage lender requires an attorney to be present at closing, whether the buyer or seller covers the cost of the closing attorney will depend on how your contract was negotiated. 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.

Why do you need an attorney for real estate?

An attorney helps you protect your investment and assets while ensuring you’re conducting your side of the transaction legally — which can prevent costly missteps. Real estate attorneys are required in many states, but even if you aren’t legally required to use an attorney while selling, it can be a good idea.

What is a real estate attorney?

Real estate attorneys help oversee home sales, from the moment the contract is signed through the negotiating period (aptly called the “attorney review”) to closing. A seller’s attorney reviews sales contracts, communicates terms in a professional manner and attends closings to prevent mishaps. Selling a home is a complex process ...

How much does a real estate attorney charge?

How much does a real estate attorney cost? How much you’ll pay for real estate attorney fees depends on your market and how involved they are in the transaction, but they typically charge a flat rate of $800 to $1,200 per transaction. Some attorneys charge hourly, ranging from $150 to $350 per hour.

What to do if you inherited a home?

An attorney can help you navigate the complexities. Estate sale: If you inherited the home you’re selling, hiring an attorney to sort through ownership documents can ease the burden, which is especially helpful when you’re grieving the loss of a family member.

Who hires an inspector to inspect a house?

Inspector: The inspector is hired by the buyer. Their job is to make sure the buyer knows about everything that may need to be repaired on the home. Sellers also sometimes hire an inspector to do a pre-inspection so they can make any necessary repairs before putting the house on the market.

Do you need an attorney for a closing?

In 21 states and the District of Columbia, attorneys are legally required as part of the closing process. Attorney-required states include: As a best practice, if the other party in your transaction has a lawyer representing them and supporting their best interests, you should too.