Buying a house is one of the most exciting times of your life and probably also your biggest investment. Hiring an attorney is not the kind of thought that comes to someone’s mind while buying a house.
It’s certainly not a legal requirement that you hire a real estate attorney. However, real estate transactions involve a lot of laws and regulations, which can be very confusing and sometimes may also lead to litigations. Having an attorney who specializes in real estate by your side can help you close the deal smoothly. Here’s how a real estate attorney can prove useful to you.
A real estate attorney can also be your realtor. Most attorneys give you a combination of these services. Moreover, he brings his expertise of laws and regulations which offer you the extra protection. Most of them have good ties with title companies and can get you good discounts; some are title agents themselves.
Avoid Potential Pitfalls
An estimate says that as much as 36% of all residential real estate property has title issues. A real estate attorney goes beyond title search and can provide a close review of the documents and the right legal advice for title issues. They can make sure the property is free of any encumbrances such as liens or judgments. They will have plenty of tricks up his sleeves to protect his client and can provide this service much faster.
Contracts are pretty complex in the case of corporations, trusts or partnerships. You definitely need the services of a real estate attorney to understand the terms in these contracts and make sure they are in line with the laws of your state.
An attorney is thorough with the state regulations and can take care of the filing in a quick and efficient manner, whenever the deeds need to be filed at county or state level. They can be especially useful in case of commercial properties or in case the property involves constructions that aren’t allowed. They will know their way through the red tapes and regulations. They can also secure your Tax identification number, sole proprietorship or a business license from the municipality.
Decrease risk of being sued
Real estate transactions need to be completed properly. Failure to disclose defects or other material facts increases your risk of being sued by the other party. Home inspections, title issues are certain things that require full disclosure. A lawyer will make sure you are compliant with all these and help you in making appropriate disclosures and secure a clear title.
Improper transfers can lead to a variety of taxes being levied on you. Tax consequences are especially important to the seller. There might be some income tax piling up if you have made a good profit. A real estate attorney will advise you as to how you can take advantage of tax provisions.
The bottom line is that while a realtor represents a seller, and a lender represents the buyer, but at the end of the day all they want is for the deal to go through. Your attorney is the only one looking out for you.