The Role of Real Estate
Lawyers
Whether you’re buying or selling a home, your
team of expert advisors should include a real estate
lawyer as well as a REALTOR®. Your REALTOR® can help you
find the right house or the right buyer and negotiate a
price and closing date that are right for you. Your
lawyer can review any offer you make or receive and make
sure that your rights are protected and your duties
clearly defined.
If you’re ready to make or accept
an offer on a property, and haven’t retained a lawyer
yet, make the offer contingent on a lawyer’s review and
approval before you sign a binder.
There are non-legal services that
claim they can do all the legal work you need. If you’re
tempted to save a few bucks this way, remember that
lawyers belong to a regulated profession with standards
they must meet and insurance to cover damages if they
make an error or omission. You don’t necessarily have
the same standards or recourse dealing with other
advisors. And this isn’t the time to do-it-yourself.
Although many legal forms used in real estate are
similar, binder or purchase and sale agreement forms
vary from state to state.
Further, some title insurance
companies and mortgage lenders require you to use a
lawyer to ensure that, among other things, the title is
good, there are no liens against the property, and that
the deal will close as anticipated.
A lawyer’s role can be as broad as
you want. And while it is not typical in a real estate
transaction, you can ask that your lawyer describe his
or her work and fees in writing before you
proceed.
If you
are buying a home, your lawyer
should:
Help you understand the purchase
contract, including how you will take title on the
property.
Check that there are no covenants,
easements, liens, etc. registered against the property
that will impede your use of it.
Prepare and register all the legal
documents.
Clarify the terms of the mortgage and work with
your bank, if necessary, to modify them.
Scrutinize the adjustments,
including taxes owing and utilities costs paid, prior to
the transaction closing.
Attend the closing and review all
the papers you will be required to sign.
Arrange title insurance protection
to protect you from losses due to title defects.
Ensure you receive a valid
registered ownership subject only to the liabilities you
have accepted.
If you are selling a home,
your lawyer should:
Review the binder and review or
prepare the purchase and sale agreement, including
negotiating its terms.
Prepare the deed and power of attorney if
necessary.
Deal
with title issues as they arise and help correct them.
Attend the closing and review all
the papers you will be required to sign.
Arrange for transfer of security
deposits.
Arrange for insurance
certificates if
needed.
Article by
life123.com
