why do i need a real estate lawyer to sell my hous

When do I need a lawyer to sell my house? You need a real estate lawyer if you’re selling in a state where it’s required by law. Each state that requires sellers to lawyer up does so for different reasons, but the ultimate aim for all is to protect the integrity of home sales in that state.

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Should you hire a lawyer to sell your house?

Aug 17, 2021 · You don’t need a real estate lawyer to sell your house — unless the state you’re selling in legally requires you to use one. 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.

What can a real estate attorney do for You?

Jan 29, 2013 · The big thing with selling a house is that if you’re doing it on your own, well, you probably really do need to come see a lawyer to get things started because it starts with a contract. The contract is a roadmap to the sale of your property, and the lawyer can prepare that for you and if you’re doing it on your own can explain it to you and the terms of it.

Do I need a lawyer when buying a home in California?

Aug 09, 2017 · A lawyer can help you negotiate and move forward with the purchase. If You’re Selling Your Home Yourself 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.

Should you act as your own realtor when selling your home?

Jan 07, 2021 · A lawyer also could help ensure the title insurance on your new home adequately protects you from potential issues. Closing The moment you’ve been waiting for— closing on a home sale or purchase...

How much does a real estate attorney cost?

Real estate attorneys cost $150–350 per hour, and usually bill in six minute increments. Or, they may charge a flat fee for certain services. Costs...

Should I use a real estate attorney if I'm selling FSBO?

Unless you're an experienced seller, you should hire a real estate attorney to prepare the purchase agreement and other documents when you sell FSB...

How do I find a real estate attorney?

A great real estate agent can refer you to a great real estate attorney. You can also find real estate lawyers through professional organizations l...

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 ...

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.

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.

Should I listen to my real estate agent?

So if you’re buying new construction, a pristine property, or signing a regular lease, using the standard forms and listening to your real estate agent’s advice should be just fine. But if you have any questions involving real estate law or taxes, a lawyer is your best source for this advice; in fact, in most states, ...

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 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.

Do I need a commercial real estate attorney?

This isn’t the case when it comes to commercial real estate . Commercial real estate deals are much more complicated and risky, and there’s usually a lot more money involved, so hiring a commercial real estate attorney for a commercial transaction is basically required.

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 does it mean when you are selling a house?

You’re selling a property that is in some state of distress. 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.

Which states require a real estate attorney to be present at closing?

These include Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and West Virginia. Keep in mind that these rules can vary by region within states, too.

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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.

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 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 ...

Do you need a lawyer for real estate?

Some states require real estate lawyers to be part of the process, while attorneys are not used much, if at all, in other states. Here is a look at why hiring a lawyer might be a good idea—or not—from a buyer’s and seller’s perspectives.

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.

Can a lawyer draft a real estate 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. For that reason, more complex contracts may need to be drafted by an attorney.

Can a buyer withdraw from a contract without penalty?

In some cases the buyer—if the contract allows it —could withdraw from the contract without penalty. Title. A title search is routine before a purchase, and might turn up a lien on the property you’re selling or buying, which a lawyer can help investigate. A lawyer also could help ensure the title insurance on your new home adequately protects you ...

Why do I need an agent for FSBO?

Among those who attempt the FSBO route, half eventually hire an agent. Here are their top three reasons for making the switch: 1 Selling is easier with an agent. 2 It takes too long to sell FSBO. 3 They needed help with the paperwork.

Why do sellers hire listing agents?

The majority of sellers hire a listing agent because it’s a job that requires skill, dedication, patience and expertise. Most FSBO sellers have full-time jobs, family commitments and other limitations that make it hard to dedicate the time necessary to sell their home for top dollar.

What happens if you overprice your home?

If you overprice your home, your listing may go stale, and you may have to cut the price.

How long does it take to sell a home?

Note that the average time it takes to sell a home nationally, from listing to closing, is between 65 and 93 days (in 2018), but it also varies based on where you live. So, expect to dedicate a lot of time to the process for at least three months, not including the time it takes to prepare your home for listing.

Do I need a real estate agent to sell my house?

Do I legally need a real estate agent to sell my house? No, you are not legally required to hire a real estate agent to sell your home. FSBOs are perfectly legal in all 50 states. However, depending on the state where you’re selling, you may be required to hire a real estate attorney to handle the paperwork.

What to do if your home doesn't sell?

If your home doesn’t sell within a reasonable amount of time, you need to be comfortable pivoting to a new plan. There’s a reason 85% of sellers end up using an agent — successfully selling a home is hard work.

Is it easier to FSBO in a sellers market?

It can be easier to FSBO in a sellers market, because homes typically sell faster and closer to asking price, with fewer price cuts. Selling in a buyers market can be more challenging, because it may take longer to get a good offer, and many other listings have a professional agent doing the marketing over the long listing period.

What is a lawyer for real estate?

Many real estate agents use standard purchase agreements. A lawyer can help draft an agreement that meets the needs of both the buyer and seller and can help explain the purchase agreement so that both buyer and seller understand its provisions. A lawyer is particularly helpful if the agreement contains non-standard provisions, as the buyer or seller may be wary of an agreement that sounds unusual.

What does a lawyer do at a closing?

A lawyer can help the seller navigate the closing process, which otherwise may be complex or confusing. In addition, other parties to the sale usually have attorneys; if the seller's attorney is the only one not present at the closing meeting or the seller does not have an attorney, it puts him at a disadvantage. At closing, as throughout the sale process, the seller's attorney is the only person involved in the sale whose job is to protect the seller's best interests.

What to do when selling a house?

When you sell your house, you must interact not only with the buyer but with a real estate agent or brokerage firm, the banker that holds your mortgage, and a title closer -- as well as the attorneys for all of these people. Thus, it is best to enlist an attorney's aid in selling your home to make sure everything is done correctly and ...

What happens if you don't hire an attorney to sell your home?

Tax Consequences. Even if you do not hire an attorney to help handle the sale itself, you may need help figuring out tax consequences from the sale of your home. The Internal Revenue Service allows sellers to exclude a portion of their profits from selling a home under certain circumstances; an attorney familiar with the tax code can advise you as ...

What is a broker agreement?

Brokerage Agreements. Brokerage agreements specify the circumstances under which a seller must pay a brokerage fee to the real estate agent. Without this agreement, a seller may be liable for this fee even if the buyer backs out of the deal or the seller decides she doesn't want to sell the house.

What is disclosure law in California?

California law requires sellers to disclose to potential buyers, in writing, any details about the property that could affect the potential buyer's desire to purchase it or the amount the potential buyer is willing to pay. (See, California Civil Code § 1102 .)

How does escrow work in California?

In Southern California, escrow functions are usually performed by an independent escrow company .

Who pays for title insurance in California?

In California, you can negotiate with your buyer regarding who is to pay for title insurance. Local custom in Northern California is for the buyer to pay for title insurance. In Southern California, the seller customarily pays. Sometimes the buyer and seller agree to split the cost. Local custom can vary by county.

What is a PTR in California?

When you sell your California home, a title company will conduct a title search and write a Preliminary Title Report, often called a "PTR.". The title insurance company will provide title insurance to the buyer based upon the PTR. Lenders will require this title insurance as a condition of funding the buyer's loan.

How much is transfer tax in California?

In California, the county transfer tax (as of late 2020) is $1.10 for every $1,000 of the sales price, or 0.11%. Some cities, including San Francisco, Los Angeles, and Riverside also collect their own city transfer taxes, which vary by city.