The role of a real estate attorney in a transaction is just as important as the actual lawyer in some cases. A real estate attorney, therefore, helps you navigate the complex legal landscape when purchasing a house. When it comes to real estate regulations, there isn’t such a thing as a one size-fits all. Different real estate regulations can vary greatly from one state to the next.
In order for a contract to be legally binding, both parties involved must sign the document. Some states don’t allow a signature on a document unless both parties have actually physically held the property or have a copy of the signed agreement. Because real estate transactions can involve many different elements, a real estate attorney is also crucial to ensure that the contract is fully-incorporated and legally binding. For example, many lease agreements have a clause that requires the buyer to pay the seller for any damages that he or she causes during the term of the lease. Without a real estate attorney working on the transaction, the buyer might be waiving this clause without actually having to pay the seller for damages he or she caused. Without a real estate attorney working on the agreement, the seller might be able to get out of the contract by claiming he or she was lawfully forced to perform damages that the buyer did not cause.
Another important reason why a buyer needs a real estate attorney is because in most states, lenders require that a house purchased through a loan transaction must be sold under a closing cost at the time of closing. Closing costs are typically the result of a percentage of the mortgage loan being increased over the value of the property. If the lender does not include these closing costs in the loan contract, the buyer may be required to pay them, which can eat into his or her profit. By using an attorney to negotiate the transaction, the buyer can often get all or a majority of these costs waived.
Another reason why it is crucial to have a real estate attorney working on a deal is that lenders will often add their own stipulations and regulations onto the closing documents in order to protect themselves. For example, they will often require that the buyer have their own qualified mortgage broker, which can be difficult to find unless one has legal experience themselves. A lawyer can legally force such stipulations to go away by taking the lender to court. A lawyer can also demand that the closing documents include a Release of Deed, which legally allows the borrower to sell the property without having to go through a sale with a real estate agent. Without a Release of Deed, the lender will be able to legally force the seller to sell the property without first having to allow the buyer to purchase it.
In order for a closing to be successful, both parties involved (the lender and the buyer) must agree to all of the closing stipulations. Any contract or agreement that is not legally binding cannot be enforced against the parties. If the lender agrees to a pre-closing document that is not legally binding, then this can be used by the lender to force the seller to sell the property without offering the buyer any type of financing. This means that a real estate attorney working on a transaction can be very helpful to both the buyer and the seller. The attorney can work closely with the seller to ensure that they do not have any legal problems associated with the transaction before they sign off on the purchase documents.
Many buyers who are looking into buying an investment property may not be familiar with the process. Instead of hiring an attorney, they may want to consider using a pappas & holtz law firm, which has experience dealing in many types of property closings. Pappas & Holtz law firms have local attorneys that are experienced in real estate transactions in the community. Instead of having to hire an attorney for the transaction, they can simply use the services of this type of firm for their convenience. Both parties can benefit from the experience of a qualified attorney who is well versed in closing agreements.