A real estate attorney or lawyer is licensed to practice real estate law. These professionals specialize in real estate transactions and often advise buyers and sellers during home sales.
“Depending on the side of the deal, the attorney typically is charged with protecting their client to make sure that the real estate transaction goes forward as smoothly as possible,” explains Shaun Pappas, partner at Starr Associates LLP in New York.
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You may need a real estate attorney if your state requires it during a real estate transaction, but having a lawyer on your side could also make sense in other situations.
— What does a real estate attorney do?
— How much does a real estate attorney cost?
— When do you need a real estate lawyer?
— Tips for hiring a real estate attorney.
What Does a Real Estate Attorney Do?
Real estate attorneys provide legal guidance and assistance to individuals and businesses involved in various transactions related to real property. Services vary, and some attorneys may specialize in certain areas of real estate law. For example, some may only work with residential transactions, while others focus on commercial buildings and leases.
According to Allison L. Orenstein, real estate attorney at Ligris + Associates in Newton, Massachusetts, these are some standard services that real estate attorneys provide:
— Draft and review contracts. In Massachusetts, Orenstein says a contract to purchase or sell real estate must be in writing. “The role of a real estate attorney is to explain, in plain English, exactly what you are signing and the legal obligations under the agreement,” she says. “There are pre-printed purchase and sale agreement forms, but a real estate attorney will create a contract that is specifically tailored to your transaction and will ensure that your interests are protected.” Also, suppose you don’t understand a term in the contract or part of the process. In that case, Orenstein says you can rely on your lawyer to clarify any language and ensure proper communication and documentation.
— Negotiate and protect. A lawyer will interpret the legal importance of terms on the purchase offer and help their clients negotiate terms following the acceptance of the offer. “This ensures that your legal rights under the contract are protected and preserved,” Orenstein explains. If there’s a breach of contract, your lawyer can advise you on the next possible steps and provide any mediation, if necessary.
— Confirm property advertising. A real estate lawyer will confirm the legal accuracy of the property listing and associated advertisements. “The situation may arise where a property is advertised as a single-family home when in reality it’s a condominium,” Orenstein says. “Your real estate attorney will uncover the legal status of a property by reviewing the title and making sure what you’re about to purchase is what was advertised.”
— Title search. Mortgage lenders must use attorneys to close a mortgage, says Orenstein. The attorney will review the property’s title and issue both personal title insurance for the buyer and title insurance for the lender.
— Determine rules and regulations. Certain properties have rules that property owners must adhere to. “For example, owners of a condominium are subject to certain restrictions, rules and regulations that govern the use of their units and the building where the unit is located,” explains Orenstein. In this situation, an attorney can help you conduct your due diligence and review documents.
How Much Does a Real Estate Attorney Cost?
The common rate for an attorney runs between $150 and $300 per hour, according to professional services network Thumbtack, but this can be higher in major cities and elite law firms.
“The cost of involving an attorney can vary depending on what the attorney is needed for and the location of the attorney or services,” says Claudia Cobreiro, a Miami-based attorney who practices real estate, family and business law. “In a metropolitan city like Miami, it can be as low as $300 and increase to several thousand dollars if it involves litigation.”
In New York, Pappas says hiring a real estate lawyer can cost anywhere from $2,000 to $20,000. “And sometimes more if the deal is a significant purchase of large real estate,” he adds.
Some lawyers charge a flat fee for certain services, like preparing closing documents. It’s not unusual to run across packaged services.
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When Do You Need a Real Estate Lawyer?
Depending on where you live, you may be required to have a real estate attorney present at closing. If your property is located in any of these states, you may be required to hire a real estate attorney:
— Connecticut
— Delaware
— Georgia
— Massachusetts
— North Carolina
— South Carolina
— Vermont
— West Virginia
In many other states, having a lawyer present at closing is common practice. “Our recommendation is that anyone who is transacting in real estate should hire a real estate lawyer,” Pappas says. “Especially in states like New York, it is a common practice to have a real estate lawyer represent both a buyer and a seller in a transaction.”
Even if hiring an attorney isn’t mandatory in your state, there are potential risks involved in not using these services. “The risk of not hiring a real estate lawyer is that the transaction is not papered correctly. You could be ‘stuck’ with a property riddled with issues, title defects, violations or other problems that can arise post-closing,” Pappas says.
[Related;What to Do When You Bought a Home With Problems Not Disclosed]
Tips for Hiring a Real Estate Attorney
Before hiring a lawyer, Pappas says to do your due diligence like you would with any other professional. He advises speaking with people who have worked with the lawyer and ensuring they have significant experience in the services you require.
Cobreiro advises anyone to consider these factors before hiring a real estate attorney:
— Do they have experience in cases similar to yours?
— Do they have the ability to explain complex legal issues in a way that you understand?
— When you need to speak with your attorney, do you have to make an appointment for a phone call?
— Do you have a way to contact them outside business hours in an emergency?
— What are the payment terms?
— How do they charge their fees?
“Generally, you’re looking to hire someone that will guide you through the process and make sure that there are no surprises or pitfalls that you’re not aware of,” Pappas explains. “The old saying is ‘We know what we know and we don’t know what we don’t know.'”
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Do I Need a Real Estate Attorney? originally appeared on usnews.com
Update 05/15/23: This story was previously published at an earlier date and has been updated with new information.
