why does a home seller need a lawyer

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.

Full Answer

Why do I need a lawyer to sell my home?

Selling a home is a complex process that requires knowledge of and familiarity with local, state and federal laws. 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.

What does a seller’s attorney do?

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 that requires knowledge of and familiarity with local, state and federal laws.

What does a real estate lawyer do?

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

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

Generally people hire an attorney if their real estate deal is anything outside a “vanilla transaction,” says Bryan Zuetel, a real estate attorney, broker, and agent in California’s Orange County. Here are a few reasons home buyers and sellers may want to hire an attorney. You’re an out-of-town buyer.

Local Real Estate Code

Is the property up to code? Cities and municipalities often have their own rules and regulations about what a property is allowed to have. Furthermore, homeowners associations have detailed regulations as well. It’s important to know what these laws, rules, and regulations are!

Property Damages and Liability

With the prior example, we saw how violating local regulations hurt either the buyer, seller, or both. In this section, let’s examine the possibility of damage to the home during the closing process.

Additional Contract Considerations

Does the seller actually own the property? A title search should be conduct to confirm the seller truly owns the home. A real estate lawyer will verify this for both parties.

Final Thoughts

It costs money to retain a real estate lawyer; however, the benefits of having one far outweigh the cost.

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 is responsible for underwriting title insurance?

Title company: A representative of the title company is responsible for underwriting the title insurance and transferring the clean title of the home to the buyer.

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.

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.

What rights do you have as a buyer?

As a buyer, some of these include the right to shop and refuse mortgage lenders, know all terms, conditions, and costs and obtain a copy of the Purchase And Sales Agreement before closing. For sellers, you have the right to set a reasonable price, advertise your property, and accept or reject an offer, among other rights.

What to expect when buying a home?

Since a home purchase uses a mortgage loan and it involves legal paperwork, you can expect the terms in contracts and agreements to be complicated. Property lawyers can explain what’s written in layman’s term, letting you understand what the document entails. You can also ask questions to clarify the legal issues you may face during and after buying the property.

Does homeownership affect taxes?

We already know that homeownership involves many costs and fees – taxes included. Your gain or loss out of the home purchase can affect your federal income taxes. By hiring a lawyer, one can answer your questions regarding tax consequences.

Is it easy to buy a house?

A home purchase is not as easy as it sounds. With all the papers you need to read and sign, all the negotiations you need to make as well as other processes in order, it can be one of the most complicated and significant transactions you can make in a life time. This is the reason why it would be wise to work with a property lawyer.

Can you negotiate with a seller when buying a house?

Many don’t realize that you can negotiate and make special terms and agreements with your lender and seller when buying a house. With a property lawyer by your side, they can review the contract terms for you and make sure the loan terms will be in your best interest.

Can a title issue cause a delay in closing?

Any title issues can cause delays in closing or worse, even bigger problems in the future. A property lawyer can resolve any title issues that can cause conflict in the home buying or selling process. Depending on the type of title issue, your lawyer can solve the problem by filing either a quitclaim, a deed of reconveyance, or a release of lien or judgment.

Can I buy a house without a lawyer?

In some states, you can buy and sell a house without a property lawyer. However, others have laws that state you need to get a property lawyer present at closing. The rules vary in every region, and some states that require the involvement of a lawyer are Alabama, Maine, Delaware, New York, South Carolina, and West Virginia.

What should a closing attorney look at when hiring a closing attorney?

If the bank hired the closing attorney, the closing attorney should have looked more carefully at the purchase-and-sale contract to determine exactly what was being sold. If the closing attorney (hired by you or the bank) made the mistake, the closing attorney should fix it.

What is closing attorney?

A closing attorney is an attorney hired by the seller, buyer or the buyer’s lender to handle the paperwork relating to the sale of the home and the lender’s documentation. This attorney acts as a settlement agent but does not represent either the buyer or the seller in the transaction. The attorney’s role is to prepare closing documents ...

What does a closing attorney engagement letter mean?

The closing attorney’s engagement letter will let you know that the attorney does not represent you but rather only prepares documents for the closing, so be sure to look closely for that wording in the document you sign. Advertisement. We mention all of this as background.

Does closing attorney fix conveyance documents?

Remember, this error not only affects the buyer but the buyer’s lender. The closing attorney may have the ability to fix the conveyance documents from you to your buyer, but it may take more work to fix the mortgage documents that the buyer signed to the buyer’s lender. Advertisement.

Why do I need a real estate attorney?

Many experts argue that one of the best reasons to hire a real estate attorney is that they’re the only party who isn’t working on commission – meaning that , since they don’t have a financial stake in the final sale price of your home, they’re the only truly neutral third party.

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.

Why do agents work on commission?

Works On Commission. 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.

Is a realtor a negotiator?

Real estate agents may be skilled negotiators, but their leverage is limited. An attorney wields the threat of litigation, which is expensive and, if the other party is in the wrong, potentially disastrous. That means they wield significant influence in any negotiation.

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.

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 ...

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?

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,” ...

Do you need a lawyer for a real estate transaction in Ontario?

Not sure which province you are in. In Ontario, you need a different lawyer for both buyer and seller. On closing, the lawyers will register/deregister the names on title to seal the deal. Technically, you don't need to have a lawyer review your documents and save a few bucks. As a Realtor, that is something I will never recommend, given the relatively low cost fee (compared to the real estate transaction amount).

Do I need a lawyer to sell my home in BC?

There is no need for a lawyer when selling property in BC. I contacted the Land survey and Titles BC and was told unequivocally that no legal representation was needed when selling real estate in BC. The Real Estate Council of BC only recommends that sellers get legal representation.

Local Real Estate Code

Property Damages and Liability

Additional Contract Considerations

Final Thoughts

• It costs money to retain a real estate lawyer; however, the benefits of having one far outweigh the cost. Lawyers ensure that both parties—the buyer and the seller—are protected under the contract they enter into. Therefore, hiring a lawyer should be seen as an investment instead of a cost.

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