Acquiring a house is more than merely making a purchase; it involves a legal transfer of ownership between parties. Due to the intricate nature of the legal aspects in this process, it’s often wise (or even necessary) for buyers or sellers to hire a lawyer who can advocate for their interests.
Although you’re probably facing numerous expenses as you approach the purchase of your home, and might hesitate to incur another cost, hiring a lawyer can prove to be an investment that ultimately benefits you in the long run.
What Is a Real Estate Attorney?
A real estate lawyer, often referred to as a real estate attorney, is a professional authorized to work in the field of real estate law. This qualification means they possess the expertise and experience necessary to guide individuals engaged in real estate dealings, including home sales and short sales.
What Does a Real Estate Attorney Do?
Property lawyers possess the expertise and legal permission to draft and examine documents and agreements associated with buying and selling residential properties. In certain instances, a property lawyer may also oversee the closing process.
During the process of buying a home, both the buyer and the seller have the option to engage an attorney to advocate for their interests. Alternatively, if an attorney is involved in managing a closing where a mortgage loan is being used for the transaction, they might represent the mortgage lender or title company instead.
When Do I Need a Real Estate Attorney?
Based on your location, the regulations of your state, and the specific details of the deal, you might require the assistance of a real estate lawyer (with the expenses added to your closing fees).
Should you find yourself in need of legal counsel (whether you’ve chosen to hire one or it’s mandated by your state or lender) there are several stages in the home buying journey where an attorney can be of help. This assistance may encompass creating and finalizing purchase agreements, preparing amendments to standard contracts used by your real estate agent, performing a title search, or overseeing the closing process.
Below are several reasons why having an attorney could be beneficial or essential during your home purchase process.
State Or Lender Requirement
Each state possesses unique regulations concerning real estate dealings, and some states classify specific actions involved in these transactions as “practicing law.” Such rules are typically designed to stop real estate agents from engaging in legal activities that they lack proper training or licensure for.
In certain regions, only a qualified lawyer is permitted to draft legal documentation associated with home sales, as this activity is deemed part of the legal profession. (Nonetheless, in various locations, real estate agents have begun utilizing standardized contract forms for home transactions, which individuals without legal training are allowed to complete independently.)
Some jurisdictions might view the act of closing on a home as a legal practice, necessitating the presence of an attorney during the closing process. Should you be securing a mortgage through Rocket Mortgage®, we mandate that an attorney oversee your closing if the property in question is situated in any of these states:
- Connecticut
- Delaware
- Georgia
- Massachusetts
- New York
- North Carolina
- South Carolina
- West Virginia
In certain regions of some states, legal representation is mandated in specific areas while it is not in others.
- Alabama
- Arkansas
- Illinois
- Iowa
- Kansas
- Louisiana
- Maine
- Mississippi
- Nebraska
- New Hampshire
- New Jersey
- Ohio
- Oklahoma
- Rhode Island
- Tennessee
- Vermont
- Virginia
Contractual Issues With The Purchase
Should your home purchase feature any unusual aspects that might result in legal complications later or make your purchase agreement more intricate, enlisting a competent real estate lawyer can ensure that your contracts reflect the complexities of your scenario and provide assistance if any contractual problems occur throughout the transaction.
Peace of Mind
If you sense that something might not be right, you’re uncertain about the legal aspects of purchasing a house, or you want to ensure everything is in order, enlisting the help of a real estate attorney can be extremely advantageous.
Having a skilled attorney provides the reassurance that, should things take an unexpected turn, you have an advocate dedicated to protecting your interests and guiding you through challenging circumstances.