who gets the lawyer when selling a building

From your agent: Experienced real estate agents often have a list of attorneys they work with regularly and recommend. They may even have a referral for an attorney who is an expert in your specific type of sale. From a friend: Ask colleagues, family members, friends or neighbors who they used in their home sales.

Full Answer

What does a lawyer do when buying a house?

The buyer’s lawyer will search the title to make sure it is free of defect. The seller’s lawyer takes the lead in resolving the problem. Once the buyer’s lawyer gives a green light on the title, the seller’s lawyer drafts the deed that conveys the property to the buyer.

Who is the lawyer for the seller in a real estate sale?

Curtis Seltzer. In most real-estate sales, the lawyer representing the seller has an easier job than the individual representing the buyer. The tasks of the seller’s lawyer can be divided into two stages—before the contract is signed and after.

Do you need a lawyer to sell a house in DC?

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. Do I need a lawyer to sell my house privately?

How much does a real estate attorney charge to sell a house?

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. If I have an attorney, do I need an agent or broker to sell my house?

When should the owner's attorney be consulted in commercial transactions?

If there is any aspect of a real estate contract that you do not understand, have questions about, or do not feel comfortable with, you should absolutely consult an attorney. A lawyer should be able to guide you through contract modifications, taxes, and financing to help you avoid pitfalls.

Do I need a lawyer to sell my house in Ontario?

Unfortunately, yes – you'll need us pesky and beloved (sarcasm intended) lawyers to assist you with the purchase or sale of property in Ontario. Under the Land Registration Reform Act the law requires that a lawyer, and only a lawyer, has to make certain statements in the land title deed (i.e. transfer).

What is the role of a lawyer in a real estate transaction?

A real estate attorney is equipped to prepare and review documents relating to purchase agreements, mortgage documents, title documents, and transfer documents. A real estate attorney hired to handle a transaction will always attend the closing with the buyer.

What does a real estate lawyer do for the seller in Ontario?

The Seller's real estate lawyer will confirm the mortgage and lines of credit details specific to the property, in addition to any discharge fees, penalties or per diem interest charges that will be owing. They will also verify the annual property taxes and status of payment with the local governing authority.

Why do you need a lawyer for a home purchase?

A lawyer can help you avoid some common problems with a home purchase or sale. For example, a seller may sign a brokerage agreement that does not deal with a number of legal issues. This happens quite often as realtors often use standard forms, expecting that they will cover all situations.

What is real estate lawyer?

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

What is the role of a realtor in a home purchase?

In the typical home purchase, the seller enters into a contract with a real estate agent, usually in writing. When the broker finds a potential buyer, they conduct the negotiations and most often act as an intermediary (the go-between).

What is the formal contract for the sale of a home?

Once an informal agreement is reached, the buyer and seller enter into a formal written contract for the sale of the new home. This is known as the purchase agreement . The home buying process then follows the following steps:

What is the most important document in a home purchase?

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:

Can a seller be forced to pay more than one brokerage commission?

In the absence of an agreement to the contrary, the seller may become liable to pay a brokerage commission even if a sale does not occur, or they may be forced to pay more than one brokerage commission. If the agreement allows the seller the right to negotiate on their own behalf, however, you may avoid this potential problem.

Does a title search tell you about zoning?

The title search does not tell the buyer or seller anything about existing and prospective zoning. A lawyer can explain whether zoning prohibits a two-family home, or whether planned improvements violate zoning ordinances.

When is a lawyer needed in the home selling process?

When selling your home, you’ll need a lawyer in the last step of the process. Namely, closing on the sale of your home. Your lawyer’s job will be to assist the buyer’s lawyer in drafting the proper documents for the legal transfer of the home. The buyer’s lawyer will be responsible for drafting all legal documents.

How much will you pay in legal fees?

Legal fees for selling your home will typically cost less than the legal fees for buying. This is because the buyer’s lawyer will prepare the bulk of the legal paperwork. Conveyancing fees for a seller can range from $ 500 – $ 1000.

Why do home sellers need a lawyer?

He or she focuses on protecting the client’s interests and ensuring that all applicable rules are adhered to in order to avoid potential problems that could arise in the future.

What is the purpose of a real estate lawyer?

Real estate lawyers can help request these disclosures as well as prepare the disclosures if they are representing the seller. Without a real estate lawyer, the likelihood of being sued regarding a disclosure increases. A real estate lawyer can also be sure to put a home inspection clause in the buyer’s documents so that any unknown defects are realized before the transaction concludes.

Why do real estate lawyers search for a title?

A real estate lawyer often conducts a title search on a property to determine if there are any encumbrances against it or anything that is clouding the title. This search helps clarify whether the seller has the legal right to sell the property and whether there is anything that may block the sale. For example, the seller may be required to pay off a lien or judgment before selling the home. A real estate lawyer can also secure proof that the judgment or lien has been satisfied.

What happens if a deed is not recorded?

Property law is full of cases involving properties that were purchased but no deed was ever recorded, creating legal nightmares for buyers. A real estate lawyer can ensure that the deed is properly filed and recorded. If a deed is not properly recorded, the buyer may not be considered the legal owner. His or her income and estate taxes may be levied.

Can a real estate attorney draft a change in the purchase agreement?

There may be changes based on the home inspection and agreements reached regarding any defects. A natural disaster may strike, causing damage to the property. Real estate lawyers can draft such amendments to keep the purchase agreement intact but to account for this new information.

Do lawyers review documents?

Many documents will manifest during the course of a purchase and sale of a home. Lawyers will carefully review all of these documents and not simply take the lender’s word for what the document is stating. If there is any troubling wording or legal issue that arises, he or she can address these concerns.

Is real estate the most expensive transaction?

However, real estate transactions often represent the most expensive transaction that a person makes. Spending the extra funds to ensure that the job is done right is often a prudent choice. Real estate lawyers help in the following ways when you are purchasing or selling a home:

What to do if you are buying a home and have legal questions?

If you're buying or selling your home and have legal questions, check out our personal legal plan and talk to an independent attorney in your state .

What happens when you hire a lawyer?

When you hire a lawyer, your lawyer only works for you and will make sure your interests are protected. 4. There is a problem with the property or the deal. A lawyer can help you resolve some of the tougher, more technical issues that might come up.

What to do if someone threatens to sue you?

You may also need legal advice if the property is involved in a foreclosure or other litigation, or if you get into a dispute with the buyer or seller. Always talk to a lawyer if someone threatens to sue you. 5. You are concerned about the tax consequences.

What can a lawyer do for you?

A lawyer can help you resolve some of the tougher, more technical issues that might come up. These may include easements, rights of way, boundary disputes, or other issues involving the property the house is on. You may also need legal advice if the property is involved in a foreclosure or other litigation, or if you get into a dispute with the buyer or seller. Always talk to a lawyer if someone threatens to sue you.

What is a "for sale by owner" deal?

A “for sale by owner" deal can save you money on real estate commissions, but you still need someone to prepare the purchase agreement, deed, and other documents. A lawyer can get your paperwork in order, ensure the title is good, and help you with the fine points of negotiating the transaction. 3.

What happens if you make an offer on a house and aren't represented by a real estate agent?

If you make an offer on a house and aren't represented by a real estate agent, the seller's agent may offer to take care of everything. This is known as “dual agency," and it can cause problems because one agent cannot truly look out for the best interests of both you and the seller.

Can you deduct home office expenses if you are a seller?

If you are the seller, you could be liable for capital gains tax if the home has increased in value. If you are the buyer, you may be able to deduct mortgage interest, home office expenses, and some or all of your property tax.

What do sellers rely on their lawyer for?

Before a contract is in place, many sellers rely on their lawyer for help in drafting the terms of their sale and reviewing a listing agreement, if one is involved. The attorney may offer advice on many issues, such as whether or not to divide the property, impose a development-limiting covenant, keep a right of first refusal on a future sale, ...

What does a real estate lawyer do?

What does a real-estate lawyer do for a seller? In most real-estate sales, the lawyer representing the seller has an easier job than the individual representing the buyer. The tasks of the seller’s lawyer can be divided into two stages—before the contract is signed and after. Before a contract is in place, many sellers rely on their lawyer ...

What happens before closing on a house?

Prior to closing, the seller’s lawyer will review the proposed settlement statement that the buyer’s lawyer has prepared. Debits and credits will be reviewed, and the math checked.

Should a seller consult a lawyer?

The seller should consult his lawyer as offers come in and counter-offers are made. Certain proposals will have adverse or beneficial tax implications, which an experienced real-estate lawyer will be able to flag for his seller. The second stage of legal work for a seller begins once a signed contract is in hand.

Who drafts the deed of a house?

The seller’s lawyer takes the lead in resolving the problem. Once the buyer’s lawyer gives a green light on the title, the seller’s lawyer drafts the deed that conveys the property to the buyer. This is usually a simple job of reusing the language from the deed into the seller and updating it with whatever changes might be required.

Who represents the seller during closing?

The seller’s lawyer represents the seller during closing. Sellers should look for a lawyer who has negotiating and problem-solving skills. Many of these tasks are routine, but the seller’s lawyer is needed when a problem has to be solved quickly to save the deal.

Should a seller review the contract language with his lawyer?

The seller should review contract language with his lawyer before authorizing his agent to use the agent’s standard contract and its boilerplate with interested buyers. Most lawyers have worked up their own “standard” real-estate contract over the years, and this may be the document a seller prefers to use. The agent’s contract may be fine “as is,” but the prudent seller should talk over its provisions with his lawyer in advance of using it with any buyer.

What to do if your building has recently changed hands?

If your building has recently changed hands or you think a sale is pending, learn as much as you can about what’s happening, what the buyer’s plans are, and, most importantly, tread cautiously if your landlord gives you a form to sign or indicates they want to talk to you.

What is a buyout in real estate?

For the uninitiated a buyout is just what it sounds like – a landlord offering to “buy out” a tenant’s tenancy in a unit in exchange for cash. Sellers can get a higher price if the property is vacant, while buyers have an incentive to get rid of tenants paying low rent so they can maximize the return on their investment. For a full run down on buyouts check out our article on the subject here.

Why is Ellis eviction so bad?

Because Ellis evictions can seriously impact the long-term value of a building it’s usually a last resort for owners. It is also a drawn out process, which can be further dragged out when tenants refuse to vacate and fight eviction efforts in court.

Why do landlords bring up buyouts?

Landlords often bring up buyout discussions in connection with the threat of a no-fault eviction. In many cases, these are simply tactics designed to pressure a tenant into taking a deal for less money, but it’s not always easy to know the difference.

Who is entitled to relocation payments?

Tenants who have lived in a unit for a year or more are entitled to relocation payments, PLUS additional money for each elderly or disabled tenant and for households with minor children. (for more info on OMIs visit sfrb.org ). There are exceptions to a landlord’s right to an OMI so check the Rent Board’s website for more information.

Can a landlord evict you for selling?

As we discussed last month, your landlord can’t evict you just because they are selling or have just bought the building you live in if you live in a building covered by “just cause .” While a sale is not grounds for eviction, we do see more “no-fault” evictions in these situations. No fault evictions include Owner Move-In evictions, and Ellis Act evictions . Often times we see landlords threaten Owner Move-In and Ellis Act evictions and then back off after tenants stand up and call their bluff.

What can a real estate attorney do?

An experienced real estate attorney can help you analyze the financial and contractual aspects of these transactions, and peruse the bylaws and other governing documents of the community in which you are either buying or selling a unit.

How to sell a condo?

If you're planning to sell a condo or co-op, you, too have some important issues to consider: 1 Have you gotten copies of all the relevant governing and other documents that buyers will want to see before they finalize the purchase? In most cases, they have a legal right to see such documents. 2 Are the taxes or regular fees comparatively high? If so, be prepared for negative reactions from buyers. 3 What will you be legally obligated to disclose about the property? The documents might not show everything that buyers need to know, such as if your neighbors are especially loud or if your unit has unaddressed repair needs. Most states' laws require written disclosures by property sellers about the property's physical condition and related issues. 4 If it's a co-op unit you're selling, are there restrictions on if, when, and to whom you can sell your shares? You might not be able to sell to the potential buyer of your choice. 5 If selling your shares in a co-op, will the sale be difficult because the board of directors has power to set the selling price? It the board plans to set the price at a higher amount than you think the market will bear, you might need to take up the matter with the board beforehand.

What will you be legally obligated to disclose about the property?

What will you be legally obligated to disclose about the property? The documents might not show everything that buyers need to know, such as if your neighbors are especially loud or if your unit has unaddressed repair needs. Most states' laws require written disclosures by property sellers about the property's physical condition and related issues.

What do you do in a condo?

In a condo, you ordinarily own just the space within your unit, sometimes including the walls, sometimes not. You are free to do just about anything you like to your unit, up to the limit of where your ownership rights end: paint, renovate, or replace cabinets. And you're responsible for maintenance inside the unit. So if your ceiling fan fails, it's your responsibility to fix or replace it. You typically can't do anything to the outside of a condo unit, such as paint or even landscape; and you won't likely be responsible for fixing your roof.

Is a condo like a house?

Buying a condo is much like buying a house, because you're actually dealing with an interest in real property that is deeded to the buyer, so conventional mortgages are possible. Co-ops, on the other hand, are not considered interests in real property (there's no deed), and so mortgage loans are not available to you.

Do condos add housing stock?

Newly built condo or co-op developments often add housing stock to the market, sometimes making them relatively affordable. But whether you're buying or selling a condo or co-op, you'll have to do your research and take into account various factors that you wouldn't have to in a "normal" home-sale transaction.

Can a condo owner have a lien against a unit?

Condo homeowners' associations and co-op boards of directors can usually place a lien against the unit for failing to pay monthly maintenance fees or special assessments, and so either the seller or buyer will have to pay these off before any sale can take place.

What happens if a lease doesn't address what happens?

If the lease doesn't address what happens if the property is transferred to a new owner, neither the landlord nor anyone who owns it after him would have a right to terminate your lease.

Can you be booted out of a rent controlled unit?

One final wrinkle: If the unit is rent-controlled or rent-stabilized, you cannot be booted out solely because the premises have been conveyed or transferred to another.