Buying a home will probably be one of the most significant purchases you will make in your life. You sign stacks of paperwork for the loan and the purchase of the property itself. This purchase also involves real property law, which raises specific and unique practice and issues that are not present in other transactions. As a result, some states are starting to certify lawyers as “Real Property Specialists” because real estate attorneys are trained to address this issue. The home buying process seems simple on the surface and leads many people to ask this question: “Do I really need to hire a real estate attorney?”
The purchase agreement is probably the single most important document handled during a transaction. Of course, pre-printed electronic forms are helpful, but lawyers can explain the forms and make changes and/or additions at the request of buyers and sellers. Some of the common issues that are usually addressed in a purchase agreement are as follows:
– What happens if the property is found to contain hazardous waste materials?
– What are the legal consequences if the closure is not carried out as scheduled? What happened to the down payment? (This question then raises additional related questions: Is the down payment held in escrow by the attorney? How will the payment be made? Will the closure comply with the terms of the buyer obtaining financing?)
– What happens if termites, asbestos or lead-based paint are found on a property inspection?
– If a property is changed or added, is it done legally?
– If the buyer intends to change the property, can the proposed plan be carried out legally?
If the salesperson seems unreasonable or asks for something out of the ordinary, that’s usually a good time to ask for advice. An attorney can serve as a great backup for a real estate agent, and they can translate the legal jargon presented to you in piles of paperwork. Escrow brokers and agents don’t get paid until closing occurs, so if something goes wrong during closing, they naturally tend to encourage you to sign the papers and close instead of making the hiccups. For example, if you find a title defect on closing day, you’ll need someone there to tell you about your rights. Alternatively, the seller can make an appointment to fix the problem with the property but still push to complete the closure. These promises need to be entered into a contract and approved by an attorney.
Perhaps the single 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 clash during the process. Generally, the agent represents the seller, while the lender is acquired by the buyer. Unfortunately, neither of them can provide legal advice. Finding an attorney to protect your own interests is a very good idea from the moment you decide to sell or buy the home until the actual closing.