A real estate transaction requires the participation of a broad range of professionals such as appraisers, attorneys, bankers, brokers, insurance agents, inspectors, and even more. There are so many aspects and so many professionals involved that both buyers and sellers may get confused about each one´s roles.
Although hiring a real estate attorney may add a few thousand dollars to the whole costs of the transaction, it is really worth it spending that money. Read on to find out the reasons why their role is so important, even critical.
- Contracts negotiation
Although most people have to skills to conduct a face-to-face negotiation with another party, the terms need to be adequately memorialized in the contract to be really legally binding. An attorney can not only negotiate on your behalf but also ensure that the contract addresses any issues that might affect the use of the property, and that it adheres to all state laws and regulations.
- Title Work and Documentation
The attorney will do all the title work, which implies searching for all pertinent records at the Registry of Deeds, including at least the past 30 years. This search is to find out whether there are unsatisfied mortgages, plats, easements or other kinds of restrictions. The lawyer will also search for any legal procedure that could be affecting the property (such as foreclosure, bankruptcy or mental incompetence from the seller).
A title search may reveal, for instance, that the seller must pay a lien or court judgment before being in condition to sell the property legally. They lawyer could solve this situation suggesting a granted price reduction so as to compensate for the wait.
- Property Transfers
When the sellers are corporations or partnerships, the negotiations and contract preparation are very complex. Only an attorney will understand the particularities of these business deals and their legal limitations within your state. He will grant that the contract meets all aspects of the state´s law as well as the trust´s or corporation´s charter agreements.
The attorney will conduct the closing. On that date, he will thoroughly review all documents and oversee the signing process. Later on, the attorney ensures that the documents are recorded at the Registry of Deeds. After that, the real estate attorney disperses the money from the closing according to the settlement.
There is no obligation to have an attorney representing your interests. Nevertheless, not counting on one, significantly augments your chances of losing a lot of time and money. For instance, if a deed is not transferred adequately, it could cause estate taxes to be levied. Or if building permits are not filed, for example on wetlands, certain structures could need to be rebuilt or bring high fines. Even worst, if it is a commercial transaction and the business is not registered correctly, the firm may not get the taxpayer id number, in which case the business could be forced to close until everything is solved out. And that could involve a significant money loss.
For private or commercial purposes, property buyers will save themselves time, headaches and money by hiring an experienced real estate attorney to take care of all.