How to have a problem free property purchase?
If you want a stress-free property purchase or sale you might think the key is finding a great property and getting mortgage approval.
The issue is…
If you don’t use the appropriate legal expertise you could be setting yourself up for a legal disaster. Most homebuyers and sellers don’t realize they need a lawyer until it is far too late.
The role lawyers play in selling/buying houses is extensive. They are the critical difference between a successful closing and a transaction that falls apart.
In this post, we discuss the importance of real estate legal representation. The value of having a lawyer on your side to keep your transaction moving forward to closing is hard to overstate.
We cover:
- Why legal expertise matters in real estate
- The hidden dangers of DIY property transactions
- What real estate lawyers do
- Common legal issues that derail sales
Keep reading to understand the true value of having a real estate attorney involved in your transactions.
Why Legal Expertise Matters in Real Estate
Buying a home is the single largest investment most people will ever make. Why on Earth would you attempt to do all the legal work yourself?
Here’s the thing. Did you know 71% of all real estate litigation is the direct result of one side not having legal representation in the transaction? Staggering. The data could not be more clear on why you need legal help.
Real estate legal experts shield you from the legal disasters that could end up costing you thousands, if not the entire transaction. They pore over contracts, do title searches, prepare and review closing documents, etc. Basically they make sure everything is on the up and up legally.
The vast majority of real estate transactions are successful. You need to have legal representation to ensure it is your transaction that succeeds rather than the other way around.
The Hidden Dangers of DIY Property Transactions
Attempting to sell or buy a home without legal expertise is like trying to perform brain surgery on yourself. It is never a good idea. DIY can sometimes work out fine with certain aspects of a transaction. But make one mistake, as is easy to do, and it could cost you everything.
The role lawyers play in selling/buying houses is huge. It is way more than just reviewing the contract. Real estate attorneys are your single best defense against the hidden traps that all real estate transactions have.
Want to know a mind-blowing fact? Properties with clear titles and properly negotiated purchase contracts close 30% faster than those with legal entanglements. You are not slowing down the sale by hiring a lawyer. You are speeding up your closing.
Lawyers are like your trusted guide through a legal minefield. Real estate attorneys see the problems before they become bombs and guide you safely around them. If you’re thinking “I Need to Sell My Home Fast” or you want to buy the perfect home. Either way legal expertise is your best protection for ensuring a smooth process while also protecting your interests.
This is some powerful stuff.
What Real Estate Lawyers Actually Do
So what does a real estate attorney do for you?
A whole lot more than you probably think. These legal experts take care of every aspect of the transaction that requires legal knowledge and skill.
They read and write contracts. There is no real estate transaction without dozens of legal documents being signed. Your lawyer will read every word to make sure you are not agreeing to something damaging later.
They do a title search. This is critical. A title search shows who actually owns the property and if anyone else has any claims against it. Hidden liens, unpaid taxes, property disputes all will derail your purchase.
They take care of the closing. The closing is when all the money changes hands and you become the official owner. Your lawyer will make sure all the proper documents are executed and filed.
Your lawyer negotiates for you. You got an inspection issue you need resolved? Your attorney can negotiate repairs and price adjustments to protect you.
Real estate lawyers also give legal advice along the way. Answer your questions, explain terms and help you make informed decisions.
Common Legal Issues That Derail Sales
Here’s the thing about real estate transactions.
Transactions are complicated. And when things get complicated, things start to go wrong. Some of these problems are minor nuisances that require some small fix. Other issues can cause a transaction to implode.
Title problems are a big one. You discover the seller does not actually have the right to sell you the property! Or you find a hidden lien on the property that needs to be paid before you can close.
Contract disputes are another problem. Buyers and sellers can differ over repair responsibilities, closing dates, etc. Lawyers can help you resolve these issues without killing the deal.
Disclosure issues can be a huge headache. Sellers are required to disclose known issues with the property. Failure to do so… you guessed it can cause problems.
Fun fact for you. Data shows that in late 2022, roughly 5% of contracts were terminated and another 15% were delayed. One in five deals had serious issues!
If you read this section a light bulb probably just went off in your head.
Many of those failed transactions could have been saved by having legal expertise involved.
Choosing the Right Real Estate Attorney
Wondering what the secret is to finding a great real estate attorney?
Not all lawyers are equal. In real estate, experience is everything.
You want to seek out specialization. Your lawyer should focus specifically on real estate law. Real estate transaction are nuanced and specialists know the details.
Ask about their track record. How many transactions have they worked on? Request references and then call the references.
Assess their communication style. Do they explain things in plain language or are they all legalese? You need a lawyer you can understand.
Consider how available they are. Real estate moves fast. You need a lawyer who will respond quickly.
Interview at least three lawyers before making your decision.
The Real Cost of Skipping Legal Help
Let me paint a picture for you.
You save a few hundred bucks by not hiring a lawyer. That sounds like a win right? But you close on the deal and now find out there is a major title issue with the property. Or that the contract had a clause you now have to pay thousands for repairs.
Boom. That “savings” now doesn’t seem like such a great deal.
The role lawyers play in selling/buying houses is all about protection. They are the insurance policy against legal disasters. You are looking at the average home selling for well over $400,000… Throwing a little at legal help makes perfect sense.
Real estate legal representation is an investment in peace of mind. You can focus on the fun parts (decorating, moving) rather than sweating the details. And that is a big win for your stress levels.
Getting Legal Help Early
Successful buyers and sellers know this truth.
A good real estate lawyer pays for itself many times over. Lawyers negotiate a better deal for you, catch problems early, and ensure smooth closings.
Get legal expertise involved early. Do not wait for a problem to appear. Bring them in at the start so they can spot issues before they become show stoppers.
The goal is not just to close a deal… It is to close the deal without disaster. Legal expertise is how you do that.
Wrapping This Up
Property purchases are complex legal transactions that demand professional assistance. The role lawyers play in selling/buying houses is critical. They do far more than just manage paperwork.
Lawyers are your protection from costly mistakes and legal disasters. With 71% of real estate litigation directly caused by one party not being represented in the transaction it is hard to argue against using legal help. Getting a real estate lawyer involved is a huge positive influence on your chances of success.
Lawyer fees are a small fraction of the transaction value. Even smaller compared to the cost of something going wrong. Ask yourself before you sign your next real estate contract. Can you really afford not to have legal representation?
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