Why You Need a Real Estate Attorney When Buying a Home

Buying a home will probably be one of the most important purchases you will ever make. Sign lots of paperwork for both the loan and the purchase of the property. This purchase also involves real estate law, which raises special and unique practice issues and issues that are not present in other transactions. As a result, some states have begun certifying attorneys as “real estate specialists” because a real estate attorney is trained to address these issues. The home buying process seems simple on the surface and leaves many people wondering, “Do I really need to hire a real estate attorney?”

The purchase agreement may be the most important document handled during the transaction. Of course, pre-printed electronic forms are helpful, but an attorney can explain the forms and make changes and / or additions based on buyer and seller requests. Some typical issues that are commonly addressed in the purchase agreement include the following:

– What happens if the property is found to contain hazardous waste materials?

– What are the legal ramifications if the closure is not carried out as scheduled? What about the down payment? (This question raises additional related questions: Will the initial payment be kept in escrow by an attorney? How will the payment be made? Will the closing be properly conditional on the buyer obtaining financing?)

– What if termites, asbestos, or lead-based paint are found when inspecting the property?

– If the property is modified or an addition has been added, was it done legally?

– If the buyer intends to change the property, can the proposed plans be legally done?

If the sellers seem unreasonable or request something unusual, this is usually a good time to call an attorney. A lawyer can serve as a great endorsement for a real estate agent, and can translate the legal jargon that comes his way in the pile of paperwork. Escrow brokers and agents are not paid until the closing occurs, so if something goes wrong during the closing, they are naturally inclined to encourage you to sign the papers and close rather than create a setback. For example, if you find a defect in the title on closing day, you need someone to be there to let you know what your rights are. Alternatively, the seller can make promises to remedy problems at the property, but still push for the closing. These promises must be included in a contract and approved by an attorney.

Perhaps the most important reason to be represented by a real estate attorney is to resolve the conflicting interests of the parties involved. Buyers and sellers often disagree throughout the entire process. Generally, the agent represents the seller, while the buyer obtains the lender. Unfortunately, none of them can provide legal advice. Seeking an attorney to protect your own interests is a very good idea from the moment you decide to buy or sell a home until the actual closing.