Attorney For Real Estate: What Does a Lawyer Do?

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Many consumers ask what a real estate attorney does. Do I need one in my real estate transaction?

Speaking from thirty-eight years of experience as a real estate agent, I can talk about the importance of having a lawyer in your corner.

Buying a home isn’t the same as many other purchases you might make. Ownership is legally changed from the seller to the buyer, and documentation and contracts are involved.

Because buying a house is more complicated, using an attorney for real estate purchases is often better. Whether you are buying or selling, a real estate lawyer should ensure your interests are protected.

Even though buying a property will result in many fees, an attorney could be a valuable extra expense that saves you money.

A Real Estate lawyer can also deal with complex and complicated transactions. They make the home buying or selling experience more manageable and less costly than it could otherwise be.

From experience as a Realtor for three decades, having an exceptional legal representative in your corner provides the confidence through research you’ll make sound decisions.
They can help you avoid claims and litigation by being in compliance with regulations.

I can confidently say that not having one can be a substantial mistake.

Let’s look at the benefits of hiring a residential real estate attorney.

What is an Attorney for Real Estate?

A real estate attorney is licensed to practice real estate law. They will be knowledgeable and experienced in all aspects of real estate transactions to assist clients.

The attorney has the legal authority to create and review contracts involved in the home transaction. Sometimes, they might be responsible for real estate closings as well.

Real estate attorneys can represent either the buyer or the seller. They ensure the interests of their client are represented throughout the process. Their legal advice is paramount to protect your best interests and provide peace of mind.

For buyers, the attorney will help ensure the offer is written correctly. When working on behalf of a seller, the attorney will ensure the seller’s interests are best met in terms of the sale.

As well as performing these tasks, a real estate attorney will review the documents and contracts for either party. Besides buyers and sellers, they help a landlord negotiate contracts or matters associated with tenant eviction.

They can also represent mortgage lenders when a home loan is used to purchase a property.

In this situation, they will be working on behalf of the lender and looking out for their interests only.

Noteworthy Facts and Statistics

1. An attorney for real estate, also known as a real estate lawyer, is a legal professional specializing in property and real estate transactions.
2. They provide legal advice and assistance to clients buying, selling, or leasing residential or commercial properties.
3. A real estate attorney helps review and draft contracts, negotiate terms, and ensure that all legal requirements are met during the transaction process.
4. They conduct title searches to verify ownership and resolve any issues or liens affecting the property’s sale or purchase.
5. Real estate attorneys also assist in resolving property-related disputes such as boundary disputes, zoning issues, and landlord-tenant disagreements.
6. Most provide free consultations to confirm your goals and plans can be satisfied.
7. Some provide specialized services such as solving probate issues or estate planning.
8. Over 95% of real estate transactions in major cities involve an attorney.
9. Real estate attorneys handle an average of 300 closings per year.
10. Approximately 80% of real estate disputes are resolved with the assistance of an attorney.
11. They have a success rate of over 90% in negotiating favorable terms and conditions for their clients.

Qualifications of Real Estate Attorneys

Like any attorney, a real estate lawyer has the education and training to practice law. A real estate lawyer typically completes a three-year law degree program, which is enough time to learn about the legal system and its workings concerning real estate transactions.

Attorneys are also required to pass the state bar exam in the state where they practice.

Real estate law training may include elective courses, internships during law school, and a certification.

Who Do They Represent?

An attorney can represent a buyer, seller, or mortgage lender in a real estate transaction. Real Estate attorneys are not allowed to represent buyers and sellers in the same transaction as it is a conflict of interest.

Do I Need One?

In some states, it is required to have a real estate lawyer, and in more complicated transactions, you will want to have one anyway.

If you hire an attorney, whether through choice or necessity, they will help in the transaction at a few crucial stages. When contracts must be drafted and finalized, your attorney will ensure the documents are legal and serve your interests.

Your real estate agent might use standard contracts, but they are often amended if you have an attorney.

Real Estate lawyers can also work on ensuring a clear title and take care of some of the closing documentation.

Let’s look more closely at some of the reasons why you might need a real estate attorney.

Some States Have Legal Requirements

There are different laws relating to real estate transactions across the country. Some states have rules regarding certain parts of the real estate transaction, which they consider to be the equivalent of practicing law.

The intention behind these laws is often to stop real estate agents from carrying out work they are not correctly licensed for.

While in some states, real estate agents use standard forms to deal with home purchase contracts, this isn’t the case everywhere. In other states, only a correctly licensed real estate attorney can draft the legal documents needed to purchase a home.

Home closings are another area that is sometimes considered a law practice. If so, the legal council must be present and deal with the relevant documents on closing day.

Attorneys Are Worthwhile in Non-Standard Home Purchases

If you’re buying a property with unusual elements that could complicate the process, help from an experienced house lawyer can make things easier.

Your attorney will consider the home purchase’s difficult circumstances and navigate its contractual problems. However, the complexity of a transaction should not dictate your hiring decisions.

Even in easy transactions, you will have protection when an attorney edits the purchase and sale agreement.

Having a Legal Expert on Your Team is Smart

If you want reassurance that the legal aspects of the purchase are being handled correctly, hiring a lawyer for real estate is the way to go.

An experienced real estate attorney will have the knowledge and experience to keep the purchase on track if something unexpected occurs. They are present to ensure your interests are looked after and can make a difficult situation go how you want.

Negotiating Short Sales is Commonplace

If you have run into financial difficulty and need to short-sale your property, it is highly recommended to have a property lawyer. Some real estate agents try to negotiate debt removal for the seller. Doing so can be a significant mistake.

Real Estate agents are not supposed to practice law, which is what they could do in cases of debt removal. When facing potential foreclosure, it is vital to have a skilled negotiator who knows the law.

Real Estate lawyers familiar with the short sale process can provide valuable advice and counsel to their clients.

When short sales were in vogue during the last housing correction, I had a real estate attorney who would do all the negotiations for my clients. It was a real win-win, and we were an excellent team from start to finish.

What Other Things They Do For Their Clients?

A real estate lawyer does more than review the purchase contract. They also oversee title documents, mortgage documents, and transfer documents.

In many real estate transactions, an attorney or staff may complete a title search, handle title insurance, and transfer mortgage funds.

It is not unusual for an attorney to coordinate with title companies to provide title insurance for home buyers. When title issues crop up, they will be involved in solving them.

When the property is financed with a mortgage lender, they will be responsible for completing the HUD-1 documents.

Occasionally, problems will crop up in a real estate transaction. A real estate attorney will attempt to resolve any potential issues. Common issues can include title problems, encroachment, and lot line disputes.

Even something less complex, such as a dispute over fixtures in a home, could be negotiated by a lawyer.

Real Estate attorneys often provide legal representation to buyers and sellers when real estate disputes end up in court. They may also be responsible for hiring third parties, such as a land surveyor, to provide a property survey.

Summary of What They Do For Home Buyers

Having a lawyer for real estate makes sense for both sellers and buyers.

Provides legal representation
They can help with negotiation on a home inspection.
Negotiates real estate contracts with the seller’s attorney
Goes over the terms of a real estate contract with you
Works with your real estate broker throughout the transaction
Ensures needed extensions for unsatisfied contract contingencies
Searches public records for property liens, other title defects, and the history of the property
Review condo docs and financials when purchasing a condominium
Reviews any restrictive covenants for a neighborhood
Does a review of a builder’s warranty when buying new construction
Works with the title company to provide title insurance
Reviews the closing costs and HUD Settlement Statement
Prepared a need deed to be recorded
Attends the closing as your legal representative

Summary of What They Do For Home Sellers

Provides legal services
They can hold money in escrow for a home purchase or lease.
Negotiates real estate contract with buyer’s attorney
Answers common questions about the purchase contract with you
Works with your listing agent in the transaction
Negotiates contract extension requests
Review the HUD Settlement Statement
Goes to the closing with a power of attorney to sign on your behalf

Other Things Lawyers Can Be Involved With

Assisting with real estate property tax assessment disputes.
Issues with local zoning.
Helping with estate sales.
Assisting with rental properties.
Providing legal assistance with land disputes.
Solving title problems or mortgage discharge issues.
Making real estate transactions more manageable for all the parties involved.

They Represent Mortgage Lenders Too

Do you know what a closing attorney does?

A real estate attorney can represent an owner with their home sale or a buyer with their purchase agreement. Real Estate lawyers can also represent banks as well.

A lawyer representing a mortgage lender is referred to as the closing attorney. When there is a mortgage, the lender will require having a legal representative.

Two significant responsibilities of a closing attorney will be overseeing the closing documents and taking care of the fund’s transfer.

An excellent real estate attorney will explain the loan documents to a buyer. It is a normal part of the closing process.

The closing attorney will be responsible for recording the deed and mortgage loan at the local registry of deeds.

Having an Attorney For Issues

Perhaps one of the essential reasons to have a real estate attorney is to head off issues and solve them before they become more significant problems. Real estate disputes are pretty standard.

What are some of the most common disputes? Breach of contract is one of them. Sometimes, one of the parties in a real estate contract does not follow their obligations. For example, they don’t follow one of the contingencies in the agreement.

When one of the parties does not follow their obligations, there is a breach of contract. Another common dispute that arises from a real estate contract is a lack of disclosure of pertinent facts.

Real estate lawyers commonly see a breach of duty as a dispute. It could be the real estate agent not acting in their client’s best interest or misleading them about a property’s condition.

One of the most crucial issues a real estate attorney will be involved in is lot line disputes. House boundaries can sometimes be contentious when there is a disagreement. Most consumers don’t know how to find property lines and are often misrepresented.

These are just more of the many things an attorney for real estate will do for you.

What Are The Risks Of Not Having One?

While it may be tempting to skip hiring a real estate attorney during the purchase or sale of a property if your state does not legally require one and your mortgage lender does not mandate it, doing so can leave you vulnerable to potential risks.

By forgoing legal assistance, you may risk having important documents prepared incorrectly, which can result in serious legal consequences. For example, if your title does not correctly name you as an owner of the property, this can cause a great deal of stress and financial losses in the future.

Considering the potential risks before proceeding without a Real Estate Attorney is essential.

Hiring a real estate lawyer when buying or selling a property is crucial, as it protects you from potential lawsuits. By having a lawyer on your side from the beginning, you can rest assured that your interests are being looked after.

A real estate attorney is highly skilled in identifying legal inconsistencies and details that you or your real estate agent may overlook, which is particularly important for buyers and sellers.

By hiring a legal representative to aid you in buying or selling your home, you’ll likely save yourself money in the long run by avoiding unnecessary issues.

What is the Cost of Having Legal Representation?

The cost of using an attorney in your home purchase can vary depending on your requirements and the legal professional’s services.

When a lender needs an attorney to be present, or if it is a legal requirement, who ends up paying will be decided in the real estate contract. It will be down to either the buyer or the seller and can be negotiated as part of the contract.

Even if a lender requires a lawyer for closing, you can still have your attorney. The lawyer a lender uses will be working for their best interests and not yours, even if you are the one who ends up paying their bill.

Hourly Rates and Flat Fees Explained

While lawyer charges can vary considerably depending on your location, let’s take a look at the range you can generally expect the fees to fall within:

Hourly rates: You can expect to be charged between $150 and $300 per hour. This depends on where you live and the attorney’s experience working on your case.
Flat fees: Some attorneys will charge a fixed price for specific services. A residential real estate attorney might charge anywhere from $500 to $1,500 to provide their services for closing. These fixed fees can be scaled according to the home’s price but provide some certainty over attorney costs.

In my area of Massachusetts, my preferred real estate attorney charges $1200 to review the purchase and sale agreement and attend the closing. Sellers rarely ever attend the closing anymore. A seller has a couple of documents to sign, whereas a buyer has a large stack.

Having real estate lawyers attend on the seller’s behalf makes sense, as the moving day can be hectic. They will attend and sign papers under a power of attorney.

How to Find an Attorney

Buying a home is probably the largest purchase you will ever make, so you should ensure that the attorney you work with is experienced and won’t miss anything that could cause issues during the transaction.

If you don’t know a real estate attorney already, you have a few options to find a good one:

Search an online review site: You can find attorneys near you on one of the many sites. This can offer information on what the attorney specializes in, their fees, and what previous clients think of their work.

Checking reviews is an essential task when you don’t know anyone.

Check the American Bar Association website: The state Bar Association site will list attorneys in your area specializing in real estate.

Recommendations: If you know someone who has recently used a real estate attorney, ask them if they can recommend their lawyer.

If they had a good experience during the transaction, they would happily recommend the attorney who helped. Family and friends are usually excellent resources for a recommendation.

Your real estate agent: Realtors deal with numerous attorneys for real estate. More than likely, they have someone they feel comfortable recommending.

Use Google: If worse comes to worst, you can do an online search for “real estate attorney near me” or “real estate lawyer near me.” You will see the real estate lawyers nearby.

Some States Require Legal Representatives For Business Matters

In some states, an attorney for real estate must be present at the closing. Attorney closing states include Connecticut, Delaware, Georgia, Massachusetts, North Carolina, Rhode Island, South Carolina, and West Virginia.

Other states require a real estate lawyer to certify the title. These states include Alabama, Louisiana, Mississippi, North Dakota, Oklahoma, South Dakota, and Wyoming.

Some states don’t require lawyers as an ordinary course of practice but use them regularly. These states include Illinois, New Jersey, New York, and Ohio.

If you don’t live in one of these states, it’s up to you whether you want to hire an attorney. Real estate law is a complex and intricate area that can be difficult to understand without the proper guidance.

If you are unsure of real estate law, seeking professional legal assistance may be a good idea.

Attorney For Real Estate in Massachusetts

As a practicing real estate agent, I’ve seen firsthand the importance of having a real estate attorney, whether you’re a buyer or seller. Massachusetts is an attorney state, so lawyers are involved in most real estate transactions.

There will always be a closing attorney when a mortgage lender is involved. Buyers and sellers can also choose to have legal representation, and most do.

Frequently Asked Questions

The decision to employ the services of a lawyer for real estate might be difficult if your finances are already stretched when buying a home.

If you’re still on the fence, these questions might help:

Whose interests does the attorney represent?

When someone uses an attorney during their purchase or sale of a home, the attorney will work only for them. To avoid conflicts of interest, the attorney doesn’t represent both sides of the transaction.

Since the buyer and the seller have divergent interests, there is no way that one attorney can represent both sides of the process. The attorney has to advocate for their client’s needs, and if they are on both sides, trying to get the best deal for both is impossible.

Unlike a real estate agent who can practice dual agency in some states, which is a conflict of interest.

If the mortgage lender requests a real estate attorney, they will represent the lender. Even though the lender isn’t paying their fees, they will ensure their interests are put first during closing.

How do They help a buyer?

They will ensure that your offer to the seller is legally valid. Any documents involved in the purchase will be checked to ensure they are correct. They can explain the mortgage terms to the buyer if necessary and make sure the home is transferred to the buyer as and when it should be.

How can a seller benefit from using one?

Negotiations can often be complex, and an attorney can help the seller better navigate the terms of the sale. They will also review the critical paperwork, ensuring the seller’s rights are protected during the sale.

Final Thoughts

Home buying can be an involved process that means committing yourself to a significant financial outlay. Legal aspects also need to be considered, and things can get complicated.

While you can go a long way to educate yourself on this subject, a professional legal expert in the transaction will better serve your interests.

If your home purchase or sale contains unusual or complex issues, a real estate lawyer could be a wise investment to help you avoid problems and unnecessary expenses.

Contact me when buying or selling a home in Massachusetts and want an excellent law firm. The attorney I work with has years of experience and will protect you from potential legal issues. They will be able to provide legal guidance for a smooth transaction.

As you can see, a real estate attorney does many things for buyers and sellers. Using a lawyer for real estate is a wise move.

About the Author: Bill Gassett, a nationally recognized leader in his field, provided information on what an attorney for real estate does. He is an expert in mortgages, financing, moving, home improvement, and general real estate.

Learn more about Bill Gassett and the publications he has been featured in. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of Metrowest towns for the last 38+ years.

Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!

I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.