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Buying a home may be the biggest investment you’ll ever make. In addition to hiring a real estate agent to help negotiate the transaction, you might consider a real estate attorney to guide you through the transaction’s legal process.
Real estate attorneys (also known as real estate lawyers) specialize in matters related to property, from transactions and title transfers to the handling of disputes between parties.
Key Takeaways
- A real estate attorney is licensed to practice real estate law.
- They have extensive knowledge and experience with real estate transactions, where you may not.
- A real estate attorney can prepare and/or review all of the documents that will be signed at the closing of a real estate purchase.
- The attorney can be present at the closing to represent the buyer’s (or the seller’s) interests.
- Real estate law is a matter for state and local jurisdictions.
Real Estate Attorneys: An Overview
A real estate attorney is a lawyer who is licensed to practice real estate law. As such, they possess extensive knowledge of different real estate issues and legalities. As your representative, they can help ensure that a property transaction that you’re a party to runs smoothly.
Property buyers and owners may desire their assistance for a variety of issues, such as:
- Title searches
- Deed transfers
- Home inspection report reviews
- Price negotiations
- Drafting a contract
- Reviewing and interpreting a contract drafted by others
- Representation at closing
- Legal rights of buyers and owners
Many states in the U.S. require that a real estate attorney be present at the closing of the purchase or sale of real estate.
Even if your state does not require one, you might want a real estate attorney to be there to represent your interests.
Most real estate lawyers charge an hourly fee for services, although some charge a flat rate. The lawyer should tell you up front how they bill.
Given their experience and expertise, real estate attorneys should be well-equipped to provide you with informed guidance and legal representation when you wish to buy or sell a home.
Qualifications
A real estate lawyer has earned a law degree, which typically takes three years of study for a full-time student.
They have also passed the state bar exam administered by the state in which they practice. Training for real estate law may begin with elective courses and internships during law school, and may continue afterward with a certification in real estate law.
Sometimes, an unexpected problem may arise during the home buying process. A real estate attorney can help at such times because they can identify the issue and take any necessary action to revise the purchase contract on your behalf before closing.
The Attorney’s Responsibilities
1. A real estate attorney can prepare and review documents relating to purchase agreements, mortgage documents, title documents, and transfer documents. They will review all paperwork in advance and advise on any problems or omissions with the documentation.
2. A real estate attorney hired to handle a transaction will always attend the closing with the buyer. A closing is the event where money is paid and the title is transferred. The attorney is there to ensure that the transfer is legal, binding, and in the best interests of the client.
3. During the purchase of a property, the real estate attorney and staff might write title insurance policies, complete title searches on the property, and handle the transfer of funds for the purchase. If the purchase is being financed, the attorney is responsible for paperwork such as the federal HUD-1 Form and related transfer of funds documentation for the buyer’s lender.
4. In the case of a real estate dispute, such as chain of title, lot line problems, or other issues involving contracts, the attorney will resolve the problem.
5. A real estate attorney may also provide legal representation for either a buyer or a seller when a dispute winds up in a courtroom. The real estate attorney obtains facts from both sides of the dispute and tries to bring them to a resolution. This may mean hiring a surveyor or title company to work through the details.
6. Real estate attorneys must be licensed to practice in the state where a transaction with which they’re involved is taking place, and must stay abreast of any state or local developments that could impact a transaction.
Benefits of Hiring a Real Estate Attorney
Expertise: A real estate attorney can provide the in-depth expertise to efficiently and effectively bring your real estate transaction to a successful completion.
Experience: They can offer valuable experience that protects your interests during negotiations and when sealing the deal.
Knowledge: They understand the legalities of real estate issues such as contracts and amendments to contracts.
Ideas: A real estate attorney with informed experience and cumulative knowledge can offer alternative solutions to the problems that you may face.
Guidance: They will provide the guidance you require to understand and complete complicated and important transactions with confidence.
Representation: A real estate attorney can represent you when you feel ill-equipped to handle a transaction on your own. This can mean less stress, less effort, and more confidence for you.
A real estate lawyer can represent a buyer or a seller but not both at the same time due to the conflict of interest that presents.
What Real Estate Law Covers
Real estate law encompasses the purchase and sale of real property, meaning land and any structures on it. It also covers legal issues related to anything attached to the property or structures, such as appliances and fixtures.
Lawyers who specialize in real estate ensure that proper procedures are followed during the acquisition or sale of property.
Real estate law covers deeds, property taxes, estate planning, zoning, and titles.
Real estate laws vary by state and local government.
When Do You Need a Real Estate Attorney?
You may decide that you need a real estate attorney for a property matter in which you’re involved because you recognize the value of relevant professional expertise, experience, knowledge, and representation. You may want such help because a significant financial investment is at stake. But that’s up to you.
As noted, certain U.S. states actually require that a real estate attorney be present to oversee a closing. Some may require that the attorney be involved in the entire closing process while others may require only that they prepare closing documents.
The list of such states changes along with state laws. So be sure that you check the real estate law in your state to determine if you must hire a real estate lawyer and for which specific purpose.
What Will a Real Estate Attorney Do for Me?
That depends on the transaction you have and the services required. For a home purchase, a real estate attorney can negotiate on your behalf, draft a contract, review and explain all important documents, including a contract prepared by the seller, and represent you at the closing.
Why Hire a Real Estate Attorney?
People hire real estate attorneys for various reasons related to the type of property issue and the money involved. But broadly speaking, when you hire a real estate attorney to represent you, say, in a house purchase, you will receive legal guidance and other services that you may need. You may have no knowledge of how to buy a house, your legal rights and obligations, or potential legal liabilities that you could encounter. A legal pro can help protect your interests before, during, and after a transaction.
How Do I Find a Real Estate Lawyer?
You might start by going online and searching for real estate lawyers in your area. Research their education and experience. Make sure they’re licensed to practice. Read available reviews for potential insight. Ask your family, friends, and neighbors whether they can recommend one. Consult your state’s bar association for a list of practicing attorneys. Contact a few to interview them and follow up with any who may fit your particular need.
The Bottom Line
A real estate attorney is a lawyer with extensive knowledge of real estate law and expertise in representing clients in real estate transactions.
Unless you live in a U.S. state that requires you to hire one, it’s up to you whether or not to retain one. Hiring a real estate attorney may depend on the confidence you have in your own knowledge of the ins and outs of real estate law.
A real estate attorney is certainly worth considering if you lack the experience to handle a basic property purchase yourself and prefer to be represented by a legal expert. Moreover, if you’re facing a particularly murky or complex situation like a foreclosure or a short sale, a real estate attorney may be just what is called for.