5 Reasons Why You Need a Real Estate Attorney
It’s a well known fact: a home is likely to be the most expensive investment a person will make in their lifetime.
It is also a fact that legal consequences from mistakes or oversights that sometimes happen during the purchasing process can cause you major headaches; and in some cases, much more than headaches.
If you are wondering about whether or not you need a commercial or residential real estate attorney, here are some reasons why it could be the most sensible idea to get one
1. Contracts
A real estate attorney will review your contract, advisably prior to the purchase – something that’s especially recommended for first-time homebuyers. Your attorney will make sure that the terms of the deal are properly honored in a contract in order for them to be legally binding.
In addition, other important documents, such as the deed, mortgage loan documents, bills of sale legal descriptions, plat of survey, and title and title insurance policy should be reviewed for any legal anomalies, any necessary changes made to them, and any of your contingencies added. These are all tasks that your real estate attorney will complete.
Sometimes names are misspelled or other errors exist in the legal description, and it takes an experienced professional closely familiar with these documents to catch all the problems or errors. Correcting it right away will save you future expenses and hassle.
Your attorney will not only negotiate on your behalf, but also take steps to ensure that you are aware of any legal particulars in your state, and that the contract follows all state laws as well as addresses any specific issues that might affect the future use of the property.
2. Addressing Liens
An estate attorney will provide another crucial service – a title search. The purpose of a title search is to make sure the property being sold is free of any encumbrances, such as liens or judgments. The findings of the title search are vital since they reveal whether the seller has the legal right to sell the property. Having an estate attorney perform this service means it gets done in less time, and often with less cost – thanks to the working relationships real estate attorneys typically have with title search companies.
Let’s look at this example: should a title search reveal that the seller must first settle a lien or outstanding court judgment before his or her home can legally be sold, a real estate lawyer will address it by suggesting that the seller makes up for making the buyer wait by allowing a price reduction.
At the same time, the lawyer may also provide suggestions or sources for financing to the seller so they can satisfy the existing claims. Your attorney will also be able to secure proofs that those liens and/or judgments have been resolved. This is especially important if you, once you become the new owner, ever need to get a loan or mortgage against the property value.
3. Property Transfers
If a deed fails to be properly transferred it could trigger a number of income and/or estate taxes to be imposed on the buyer and/or the seller.
Also, a real estate attorney will assist you with complex negotiations and contract preparation in cases where one or more parties are corporations, trusts or partnerships. Your attorney will be knowledgeable of different types of business arrangements and that the contract is consistent with your state’s law. Also, a very important aspect of it is to ensure that the terms of the deal do not violate the partnership, trust or corporation charter agreements.
4. Filings
A real estate attorney will quickly and efficiently take care of filing deeds at the county and state level. Also, if the property in question needs certain types of construction that may not be allowed, your attorney will have expertise as to how to traverse various state regulations so that your deal may be completed.
For example, if building permits for a property or land on wetlands are not filed, certain structures may have to be rebuilt, or owners may face fines.
If the property is commercial, having an attorney handle such transactions is even more critical. Your attorney will know how to deal with government red tape and get your tax ID number from the state, establish your corporation or sole proprietorship as a valid business entity for state tax purposes, and may secure your business license through the municipality.
5. Mitigating The Risk
Having legal representation will significantly decrease your chances of being sued by the opposing party in case certain information was not disclosed. Your real estate attorney will review the home inspection and ensure that all relevant facts about the property, including any judgments or defects, are disclosed to the other party.
In addition, if the other party is a corporation or a partnership and for any reason the transaction is not finalized properly, they may sue you, plus you may also be sued by its partners individually. Reasons for this could be that the title to the property was not cleared or a corporate charter was violated. Your real estate attorney will be in a much better position to secure a clear title and make the appropriate disclosures. And although some risk of such litigation may always exist, securing legal counsel will undoubtedly mitigate your risk.
Undeniably, having an estate lawyer by your side to look out for your legal interests with their seasoned eyes will help ensure a transaction proceeds smoothly.
So, attention homebuyers – while it is not a legal requirement, having an attorney during the buying process has proved over and over again to be a wise choice.
It makes good business sense to hire an attorney for a real estate deal, since it is such an important and complex process. The Levin Law Group’s experienced, competent real estate lawyers can assist individuals and business entities in a broad spectrum of residential and commercial real estate transactions throughout New York State.
Take steps to ensure your interests are protected. Contact our real estate attorneys today:
https://ylevinlaw.com/practicerealestate.html
Source: http://www.investopedia.com/articles/mortgages-real-estate/08/real-estate-attorney.asp
*The contents of this document are not legal advice and are not to be treated as such. Before making any decision or taking any action, Contact Levin Law Group for actual legal advice.