Buying and Renting Property: When To Hire a Lawyer

Purchasing or renting real property marks an important milestone, but it can also be a complex journey filled with potential legal issues. From understanding closing documents for a new home purchase to considering the risks of equity loans or foreclosures, both buyers and landlords face a maze of regulations and paperwork. For first-time homebuyers, navigating everything from property searches to mortgage loan negotiations can quickly become overwhelming. While self-education and the guidance of a real estate agent are valuable, the intricacies of real estate law often require professional insight. Knowing when to consult a qualified real estate attorney can help you protect your investment, avoid costly mistakes, and move forward with confidence.

This article provides a guide to the renting and homebuying process to help you avoid problems before they come up. While real estate agents can often help, sometimes getting expert legal advice can save you money and frustration in the long run. Learn more about how a qualified real estate attorney can give you peace of mind.

What Does a Real Estate Attorney Do?

Real estate attorneys specialize in property law. They may focus on commercial real estate or residential real estate transactions. A real estate attorney can help you through every step of the process. They can work with the title company and secure title insurance. The attorney can negotiate your purchase agreement and sale price. Your attorney can help with issues that arise after the buy or sale of the property, such as undisclosed issues with the home or property disputes.

A realtor works on commission, and while working for you they might push for a sale as quickly as possible. Your attorney works for you and your interests. They will charge either a fixed hourly rate, on contingency, or a flat fee. You may be able to roll the attorney cost into your closing fees.

Buying a Home

You may not need an attorney to buy a home. A qualified real estate agent can often guide you through the homebuying process. However, state law may require a real estate attorney to be part of the transaction.

Real estate transactions involve many legal matters, including contracts, legal documents, title searches, and other potential legal issues. Since a home is often the most significant purchase an individual will ever make, obtaining legal services when necessary is very important.

For example, real estate agents often use standard downloaded forms that may not address all legal issues in your home purchase. The consequences of not fully understanding specific contractual language or failing to address certain aspects of the transaction can lead to potentially expensive surprises. If you wish to change the language of these forms, you will need a real estate attorney to alter the contract.

The main document in a real estate transaction is the purchase agreement. A purchase agreement is a real estate contract containing all the terms and costs of a home sale. Even if you don’t work with a lawyer in the early stages, you may want an attorney to review the purchase agreement. Some states require an attorney at this stage, while others require an lawyer to be present at closing.

If you don’t work with a realtor in your homebuying process, consider having a real estate attorney review your contract and other paperwork. Often, real estate attorney costs can be included in the closing costs.

Selling a Home

As a homeowner, selling your property is a big decision. Perhaps you need to sell a property for a deceased relative or are facing the possibility of foreclosure, and your lender has agreed to a short sale. Hiring a qualified real estate agent can help you get the home ready to sell and give you an accurate idea of what your property is worth.

You can sell the property yourself, but selling involves many laws and regulations. Various scams may rip you off. Having a realtor and a real estate attorney can help you avoid these scams and ensure your sale is legal, which can save you a lot of headaches later.

Negotiating your sale price and purchase agreement can be tedious, but your real estate agent can handle most of those issues with your agreement. If you’re unsure about the terms of the purchase agreement, don’t hesitate to have a real estate attorney review it for you. An attorney will review the purchase agreement and the closing documents to ensure the terms are lawful and protect your rights.

Renting Your Property

A lot goes into being a landlord. Renting your property centers around the terms of a written contract and your legal obligations to the property. An attorney can provide valuable feedback in drafting your lease agreement and reviewing your legal duties as a landlord. Tenants don’t often hire lawyers when renting a property, so it’s their responsibility to understand the lease terms.

As a landlord, you must abide by specific laws. The law prohibits landlords from discriminating against prospective tenants based on:

• Disability
• Race
• Sex, gender identity, or sexual orientation
• Religion
• National origin
• Familial status

The Fair Housing Act and the Fair Credit Reporting Act also require you to disclose to the tenant applicant if you run a credit check and obtain a credit score. You must also tell the applicant if you reject them based on credit report information.

You may benefit from working with an attorney if you have an irreconcilable dispute with your tenant. This may include a disagreement with the deposit refund at the end of the lease, the meaning of specific contractual terms, or even an eviction. A real estate lawyer specializing in landlord-tenant law can review your lease agreement, assess the conflict, and suggest the proper action.

When You Need a Real Estate Attorney

Certain legal issues can arise that your realtor cannot address for you. Only an attorney can give you legal advice. Consider consulting a real estate attorney if the following situations occur:

• The other party has an attorney
• Contract disputes with owners or builders
• Boundary dispute involving the property
• Buying a short sale, estate sale, foreclosure, or more complex property transactions
• Purchasing a home from out of state
• Zoning conflict with new construction
• Title issues or hindrances
• Tax or other liens hinder the property
• Post-sale problems such as structural issues, mold, or significant water damage
• Property disputes with possible litigation or do end up in court

Most property disputes don’t make it to court. The majority get settled through mediation, arbitration, or private negotiations. If you have a dispute that may end up in court, it’s best to have an attorney who understands the law and will fight for your best interests. Your attorney can help with negotiations and settlement processes and draft new contracts.

State Real Estate Laws

Each state has its own property laws. You need to be familiar with what your state requires. Your real estate agent or attorney can help.

If you live in a state that requires an attorney for the selling and homebuying process, your realtor may recommend attorneys you should contact. You can research real estate attorneys through your state bar association. There are also legal resources you can search on FindLaw if you wish to familiarize yourself with the laws of your state.

The following states require an attorney for real estate transactions:

• Alabama
• Connecticut
• Delaware
• District of Columbia (DC)
• Florida
• Georgia
• Kansas
• Kentucky
• Maine
• Maryland
• Massachusetts
• Mississippi
• New Hampshire
• New Jersey
• New York
• North Dakota
• Pennsylvania
• Rhode Island
• South Carolina
• Vermont
• Virginia
• West Virginia

Real estate laws vary by state and county. If you have questions, look into the laws of your state or consult an attorney.

Questions about Buying, Renting, or Selling Property? An Attorney Can Help

Property law is complicated. Not all buying or selling transactions are straightforward. Being a landlord requires compliance with state and federal laws. If you have questions or have hit a complex issue with your property, don’t hesitate to consult a real estate attorney. Often, attorneys offer free initial consultations to help you understand your options.