Your real estate attorney is your legal protector when you enter the unfamiliar world of home buying. A real estate attorney is not required by Florida law, but hiring a real estate lawyer is still a very good idea. Your real estate attorney is your guide and your hero through the paper storm of buying a home.
Buying a Home Creates a Paper Storm of legal documents. Your Real Estate Attorney can Guide You Though all the Documents to safe ownership.
He or she is legally experienced in real estate law. Likewise, your real estate attorney is ethically bound to guard only your interest during the home-buying process.
As the Florida Bar states, “…it is extremely important that you, the prospective buyer, use the greatest caution in buying a home.
For your protection, consult a lawyer before you sign a purchase contract.”
And they add the first of many warnings, “However, not all lawyers have experience in reviewing real estate contracts, so be sure to ask about the lawyer’s experience.”
Thus, we suggest you do not hire just any lawyer or a college friend who recently graduated law school. Please research to find a true Real Estate Attorney who has specialized training in this field.
For example, Shivon Patel is a Board Certified Attorney with the advanced training and education as well as the experience to protect her home-buying clients.
Why Home Buyers Need Real Estate Attorneys
A Real Estate Lawyer protects only your interests when you buy a home.
Experts state, “Buying a home will probably be the largest and most significant purchase you will make in your life.
It also involves the law of real property, which is unique and raises special issues of practice, and problems not present in other transactions. A real estate lawyer is trained to deal with these problems and has the most experience to deal with them.”
We know you are counting your extra dollars for your down payment, closing costs and a myriad of house-related needs. But, once again, as soon as you decide to go house hunting, please, make hiring your own real estate attorney a priority.
Reasons Principal Law Believes Home Buyers Need Real Estate Attorneys.
Once again, we welcome you to a legal issue close to our hearts at Principal Law. In fact, most of this blog was written in a previous article bythe founder of Principal Law, Shivon Patel, Esquire. We’ve just re-formatted it for a blog and added some updated research.
In her original article, Why You Need A Real Estate Attorney, she introduced the issue, saying, “You’ve found the perfect home. Now what?” She then briefly outlines the process of buying a home:
An Overview of Five Simple Steps to Buying a Home: Each One Loaded with Legal Ramifications…
1. The Seller, the Listing and the Agent:
Plan Your Home Buying Budget to Include a Real Estate Lawyer Who Protects Your Legal Rights.
“Generally, a seller will enter into a listing agreement with a real estate agent.”
2. The Purchase Agreement:
Shivon states, “Once a potential buyer is identified and an agreement is reached, the buyer and seller enter into a written Purchase and Sale agreement.”
Here’s where you first begin to need your real estate lawyer, to examine every tiny detail of this document.
The Florida Bar summarizes this duty: “It is important that your purchase agreement be prepared or reviewed by your own lawyer before you sign to ensure the agreement covers your requirements.”
They add, “Remember that even printed form agreements are negotiable, but this requires knowledgeable and independent professional guidance.”
Find out more by visiting the online resource of the Florida Bar Association, where you can see a video and a prepared pamphlet that explains the details of the Purchase and Sales Agreement. You’ll understand why that this document should be previewed by your own real estate lawyer, who has only your interest at heart.
3. The Financing:
“The buyer then obtains a financing commitment if it is not a cash deal…
4. The Title Search
“A title search is performed to satisfy the lender and the buyer and for title insurance purposes.”
5. The Closing:
“Finally, closing occurs and title is transferred from the seller to the buyer.”
Shivon Reveals the Legal Complexities Behind Each of These 5 simple Steps
Do not sign your home-buying documents without a Real Estate Lawyer.
She then explains, “Although this process seems simple and straightforward, without a lawyer, the consequences may be disastrous.”
As we said at the beginning, you might need legal protection when you buy a home, whether your state requires you obtain it or not. We suggest you hire your real estate attorney as soon as you start your search for your dream home, because problems can occur for the buyer from the very beginning of any real estate deal.
Your Real Estate Attorney Will Meticulously Examine the Purchase Agreement (Step 2, Above)
Shivon writes, “In the absence of an agreement to the contrary, the seller may become liable to pay a brokerage commission even if the sale never occurs or may end liable to pay more than one brokerage commission.”
This liability could come as quite a shock, emotionally and financially. But if you have an attorney, you will be protected.
“You can, however, have your attorney negotiate the terms of the agreement with the agent.” Likewise, she advises, “The seller should obtain the advice and guidance of an attorney in regards to the listing agreement. Even though the agreements are generally standard form contracts, the terms of the agreement should be clearly explained to the seller and if necessary, revised.”
Did You Know: Real Estate Agents use Generic Forms?
Attorney Shivon Patel wants you to understand from the beginning of your home-buying journey, “The purchase and Sale Agreement is one
of the most important documents in the entire transaction. Standard forms are generally used but you should always have a lawyer review the agreement and explain the terms of the agreement to you.”
Special training and a commitment to their clients make real estate lawyers heroic defenders of your rights as a home buyer. If you want to check out the body of law in real estate, we suggest you visit this helpful online resource.
Experts agree with Shivon, and list all kinds of possible pitfalls for unprotected buyers. Note the following quoted list, as published in the reliable online resource, Findlaw.
“A lawyer is helpful in explaining the form and making changes and additions to reflect the buyer’s and the seller’s desires. There are many issues that may need to be addressed in the purchase agreement; below are some common examples.”
- Alterations to the Property: If the property has been altered or there has been an addition to the property, was it done lawfully?
- Planned Changes to the Property before the sale: If the buyer has plans to change the property, may what is planned for the property be done lawfully?
- Managing a Meticulous Inspection: What happens if a buyer has an engineer or architect inspect the property and termites, asbestos, radon, or lead-based paint is found?
Before You Buy: Let Your Real Estate Agent Check Out Your Rights and Possible Liabilities.
- A Dangerous Dump: What if the property is found to contain hazardous waste?
- Would You Be Liable if : What are the legal consequences if the closing does not take place, and what happens to the down payment?
This last question raises related questions: Will the down payment be held in escrow by a lawyer in accordance with appropriately worded escrow instructions? How is payment to be made? Is the closing appropriately conditioned upon the buyer obtaining financing?”
Your Real Estate Attorney Can Shield You From Generalized Forms
Principal Law advises you, in Shivon Patel’s words, “For the buyer, it is crucial that the agreement contain a financing contingency. If necessary, the lawyer can assist with revising the agreement to reflect the buyer’s and seller’s wishes.”
She adds what we will call the Principal Law List of Key Questions for Home Buyers:
Do not buy a home without the answers:
1. Are there any zoning violations with the property? Are there covenants or restrictions on the property that would limit your use of the property?
2. Will your mortgage change over time?
3. Will you be able to afford the payments over time?
4. Are there issues with the chain of title to the house that may interfere with your ownership of the property?
5. Are there homeowner’s association dues and restrictions?”
The Terrific Take-Away for Why You Need a Real Estate Attorney
Did you know…Shivon Patel has won the prestigious honor of being named a Rising Star ! Read the story at a previous Principal Law Blog.
“An attorney can assist with reviewing documents and answering these crucial questions for you. Purchasing a home is one of the largest financial transactions of your life and consequently, you need to protect yourself before signing any documents.”
One Final Caution for Home buyers:
To avoid biased opinions, a buyer should not rely on advice or statements from the seller or seller’s agent, even if they are attorneys. For the buyer’s protection, it is important to have your own real estate attorney review all real estate documents for accuracy.”
As usual, we thank you for reading the Principal Law blog, and remember fees for your Real Estate Attorney are not as expensive as you might pre-suppose. But buying a house in Florida without the advice of a Real Estate Attorney might be much more expensive than you think.
