A home purchase or the purchase of a commercial property is one of the most important financial decisions that most people make in their lives. If they work with a local agent, they are likely to be able to handle everything well. A local agent will be familiar with all the laws and regulations in the area and can advise you on any unusual qualities that might complicate the transaction.
There are some situations where you may need to hire a real-estate attorney in order to sell your home. A great real estate attorney can be a support for your agent and help you find loopholes in the purchase contract. They may also save you money by avoiding contingencies.
This is where the befits of having a skilled real estate attorney who is also a licensed brother becomes most obvious.
Many States Require A Real Estate Attorney's Participation
You are legally required to consult a real estate lawyer if you reside in any of these states when you purchase or sell a house.
• Alabama
• Connecticut
• Delaware
• District of Columbia
• Georgia
• Kansas
• Kentucky
• Maine
• Maryland
• Massachusetts
• Mississippi
• New Hampshire
• New Jersey
• New York
• North Dakota
• Pennsylvania
• Rhode Island
• South Carolina
• Vermont
• Virginia
• West Virginia
3 Reasons To Have A Licensed Broker And A Real Estate Attorney
Things Are Getting More Complicated
Think about the advantages of having a broker who is also an attorney in real estate from the buyer's or seller's perspective.
A lawyer is a good idea if you are involved in a complex transaction. Complex transactions can cover a lot of ground. This includes reviewing a cooperative proprietary lease and drafting a new home contract for the developer. It also covers handling documents such as community interest development agreements.
Common gray areas can also arise when selling properties. These should be addressed in writing to protect both sides. These situations should not be handled with handshake agreements.
Sometimes sellers face unexpected issues such as last-minute legal claims against their house or problems with the title.
Future Liability Protection
A purchase agreement is a legal document that sets out the rights of both the seller and buyer. An attorney can review the contract to ensure you are receiving all the guarantees and protections you need.
This problem was illustrated in a Seattle Times article. The basement of the seller's house was leaking. He disclosed the problem to the buyer openly and completely. He also showed the buyers the permanent sump pump that he had installed in the basement to control the leaks. They were able to admit the problem and purchased the house.
The buyer converted the basement from a leaky place to a family room and installed wall-to-wall carpeting after they bought it. After their carpet was damaged by a water leak, the buyer hired a lawyer to sue the seller. Although the seller disclosed the leak and was not technically responsible for the damages, his lawyer stated that it would be much more expensive to defend himself in court than just buying new carpet. After the buyer signed an agreement exonerating the seller from all future claims, the seller paid for wall-to-wall carpeting.
It would have saved the seller much time and money if they had consulted a lawyer to create a purchase agreement that specifically protected them from liability.
This principle also applies to buyers. This article also discusses buyers who bought faulty houses and how they might have gained from hiring a lawyer. A woman purchased a house that had a concrete foundation only to discover it was actually a thin layer mortar on top of rotten wood. A second buyer purchased the house in summer and discovered that the heating system was not working in the winter due to the fact that the ductwork had been taken out during a recent remodel.
Although disclosure law exists to protect buyers, some states (Virginia for example) are "buyer- beware states," which means that the buyer is responsible for finding problems with the property. These states may have requirements regarding disclosures for sellers. However, buyers should have independent inspections performed and likely want inspection contingencies to be added to any purchase agreement.
A Proper Closing
A lot of vital steps occur during the closing of a real estate purchase:
• Preparation and signing of closing papers, such as the deed
• The seller transfers title to the property to you
• The balance of the purchase price is yours to pay
• A closing statement is prepared, which details the transactions between you (the buyer)
If there are any last-minute questions, or disagreements over costs, a real estate attorney can be of great assistance. If something happens during closing, your rights could be compromised.
A real estate attorney is available to help with any last-minute questions or disagreements.
