when to get a real estate lawyer involved in a sale by the sellers

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 ...

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.

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 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.

What is a real estate attorney?

If you’re financially underwater and contemplating a short sale or foreclosure, a real estate attorney (along with your agent) is one of the experts authorized to negotiate with your lender on your behalf.

Why are closings delayed in 2020?

Statistics from the National Association of Realtors show that 30% of closings in October 2020 were delayed because of complications, including issues related to financing, appraisals, home inspections, titling, distressed property, or contract contingencies.

Who does Lisa Cowart work for?

Cowart has worked with real estate attorneys to facilitate home sales for people serving in the military, which also involves remotely transmitting and signing documents. She’s also found an attorney’s staff helpful when dealing with out-of-state sellers who are “technology-challenged.”.

Does a permit issue crop up?

A permitting issue doesn’t always crop up during a standard records search, he adds. Sometimes the buyer does a survey inspection and compares the physical property to the survey. If the property has a rear deck that’s not on the survey, that raises the question of whether any work was permitted properly, he says.

Is a realtor neutral?

While a real estate agent is a neutral party in this situation , an attorney can ensure there are no conflicts of interest — or be prepared to go to court in a partition action if necessary. Sometimes even a sale with one owner can turn adversarial, though.

Can you sell a house with multiple owners?

Whether you’re selling property that you own with a spouse or one that you’ve shared with siblings, a sale with multiple owners can dissolve into chaos if there’s no agreement in place (such as a joint tenancy or living trust). While a real estate agent is a neutral party in this situation, an attorney can ensure there are no conflicts of interest — or be prepared to go to court in a partition action if necessary.

Did Herzberg sell a condo?

Herzberg handled the sale of a Miami Beach condo that the seller inherited from a relative. It had been transferred through a quitclaim deed, but because the death certificate hadn’t been filed with the deed 20 years ago, he had to obtain another death certificate and record it with the sale to provide a clear title.

Why do you need an attorney when selling a house?

You’re the heir or executor of a property whose owner is now deceased. You’re selling a house with an uncooperative partner. You have judgments or liens on the property.

Why do I need a real estate attorney?

Reasons to hire a real estate attorney even if it’s optional 1 You’re an out-of-town buyer. 2 You’re buying a property that is a short sale or bank-owned. 3 You’re buying a property that is part of an estate sale. 4 You’re buying a commercial property. 5 You’re buying a property that could potentially have some structural issues. 6 You’re buying a property in a problematic area such as a flood zone or areas with adverse conditions (tornado-prone, radon, toxicity levels, etc.).

What is the education required for real estate agents?

As part of agents’ licensing education, they’re taught and tested on real estate contracts used within their state, many of which also require continuing education courses and/or certifications on subjects such as ethics, buyer’s agency, distressed property sales, and more.

Who is Julie Ryan Evans?

Julie Ryan Evans is an editor and writer who has covered everything from politics to pop culture and beyond. She loves running, reading, cold wine, and hot weather. Get Pre-Approved Connect with a lender who can help you with pre-approval.

What is the difference between a realtor and a real estate agent?

A real estate agent, or realtor, is tasked with marketing a property for sale or finding a property for a buyer, Romer said, while an attorney is enlisted to ensure someone’s legal rights are protected during a home sale. Real estate agents are paid based on commission , while attorneys are paid a separate legal fee that is typically a flat rate, he said.

How much does an attorney charge per hour?

While most attorneys charge a flat rate, some will charge by the hour, with hourly rates ranging from $150 to $350, according to Thumbtack.

Do you need a real estate attorney to close a house?

Some states require a real estate attorney for closing, while others don’t. In states that don’t require an attorney, it’s still a good idea to consider hiring one to help make sure everything is in good order. How much does a real estate attorney cost may factor into your decision-making given how many costs are associated with closing on a house .

Who can help a buyer with a real estate contract?

Buyers can have real estate agreements drawn up by a real estate attorney or agent. A title company or Realtor can help the buyer find someone to write a contract if necessary. If the seller doesn’t have an agent lined up to draft the purchase contract, the buyer’s own real estate agent can take care of the transaction paperwork as ...

What is a seller's agent?

The seller’s agent is typically the person who draws up a real estate purchase agreement. But what happens if the home is for sale by owner (or FSBO) and the owner isn’t represented by a real estate agent at all? A FSBO sale can occur in a seller’s market or when sellers want to maximize their profits on a sale by not having to pay a commission ...

What is land contract?

A land contract is used when the owner provides financing when going to sell, so that you do not have to get a mortgage elsewhere to purchase the property. The contract stipulates the amount of the loan, the interest rate, and what happens if you fall behind on property taxes or payments. You and the seller can negotiate the terms of the agreement, ...

What is FSBO sale?

A FSBO sale can occur in a seller’s market or when sellers want to maximize their profits on a sale by not having to pay a commission to a real estate agent. So if the buyers want to make a written offer on property, who will be tasked with drawing up the purchase agreement, or the contract outlining the terms and conditions of the sale?

What is a purchase contract?

As a real estate buyer, a purchase contract is one of the first steps toward closing the sale. “In layman’s terms, a purchase contract is simply the written contract between the buyer and seller outlining the terms of the sale,” Hardy explains.

Why do people move on when they don't have a realtor?

It’s not unheard of for buyers to move on, because they are afraid to sign a contract without the help of an agent. Experts say the solution is to turn to the buyer’s own representation for writing a contract. “Typically, if the seller does not have a Realtor®, the buyer’s agent ends up doing most of the work,” explains Ryan Hardy, ...

Where does Jeanne Sager live?

Jeanne Sager has strung words together for the New York Times, Vice, and more. She writes and photographs people from her home in upstate New York. Get Pre-Approved Connect with a lender who can help you with pre-approval.

Property Contract

The property contract is the primary agreement between a property seller and buyer. It establishes the terms under which the transaction will take place and the exact details of what is included in the sale. Some of the specific details that are generally included in any contract are:

Marketable Title

One of the primary provisions of a contract for sale is the transfer of a marketable title by the seller. This means the seller must provide an abstract of title, which includes a history of ownership and encumbrances on the property plus insurance to cover any challenges to that title.

Condition of Property

In some states, the law also requires sellers to fill out an extensive disclosure form that specifies that all aspects of the home and its equipment are working properly. Other states do not require such a form, but that the seller inform the buyer of any defects.

Closing the Property Sale

Once all the conditions of the contract have been agreed upon and met, the closing of the transaction and transfer of ownership can take place. Among the paperwork that must be reviewed and signed, the principals will find

What to do when you find a buyer for your house?

Once you find a buyer for your house, it's time to start the closing process. In a typical real estate transaction, your agent will make sure you fill out all the necessary documents and forms. As a FSBO seller, you'll have to navigate the paperwork by yourself.

How does a realtor work in Arizona?

Traditionally, both the buyer's agent and the listing agent are paid a commission by the homeowner. When sellers work with a realtor, they negotiate a commission as part of the listing agreement.

What is FSBO selling?

Selling without a real estate agent, known as listing For Sale By Owner (FSBO), is a viable option for experienced home sellers who are willing to put in the time and effort. However, selling FSBO has risks.

How much less does a FSBO home sell for?

Research shows that FSBO homes typically sell for about 6% less than those listed with agents AND you'll still usually be on the hook for offering a competitive buyer's agent commission. FSBO homes also often take longer to sell and are more likely to fall out of contract after accepting an offer.

How much does clever pay?

You pay Clever nothing and only pay your full-service agent $3,000 (or 1% on homes over $350,000) if and when your home sells .

What is the average realtor commission rate in Arizona?

In Arizona, the average realtor commission rate is 4.50% to 6.00%. If you sell a house worth $351,700 — the median home value in Arizona — that’s over $10,200, which is a huge chunk of your potential profits.

What is clever agent?

Clever is a quick, easy, and free way to find a top-rated local agent. And, unlike many similar companies, Clever pre-negotiates big discounts on your behalf, so you can save thousands without sacrificing on service.