Buying a house is the most substantial investment you will ever undertake. By hiring a real estate agent to assist with the negotiation, you should consult a real estate lawyer to help you navigate the legal process. Real estate attorneys focus on property-related issues, such as handling transactions and resolving conflicts between involved parties.
Here’s a concise overview attempting to clarify “What Does A Real Estate Lawyer Do For The Seller?” And their involvement in different real estate transactions.
Who Are The Real Estate Lawyers?
Many states require a real estate attorney to be present at the closing. Even if your state does not require it, you may benefit from the services of a real estate attorney. A real estate attorney represents your interests during the closing and will review all paperwork in advance and provide feedback on any errors or omissions.
Most real estate lawyers charge an hourly rate, but some charge a flat fee. The lawyer will inform you upfront.
The Lawyer’s Responsibilities
So, what does a real estate lawyer do for the seller? A real estate lawyer creates and reviews purchase agreements, mortgages, titles, and transfer documents. When hired for a transaction, the attorney oversees the closing process with the buyer, which occurs after the transaction’s completion. The attorney ensures the transfer is legally binding and in the client’s best interests.
In acquiring a property, the real estate attorney and their team may generate documents, formulate title insurance policies, conduct searches, and manage funds transfer. If the purchase is approved, the attorney will complete paperwork for the buyer’s lender, including the federal HUD-1 Form and transfer of funds documents.
The attorney can resolve real estate disputes, including chain of title, lot line problems, and contract issues. A real estate attorney can represent buyers and sellers in court in a dispute. The real estate attorney gathers facts from the conflict and works to reach an agreement, which may involve hiring a surveyor or title company.
What Do Real Estate Lawyers Do for Sellers?
The real estate lawyer’s role on the seller’s side is to ensure that the transaction runs efficiently and that all legal aspects are forward. They are concerned with the mortgage payment and the smooth property title transfer. A real estate lawyer, like a buyer’s agent, performs several critical tasks, including:
- Before signing any legal documents, review them thoroughly and negotiate the terms and conditions.
- Prepare the Contract or agreement for your house.
- Address and resolve title problems as they arise.
- Ensure all legal and financial requirements are close to the transaction.
- Share legal documents and keys with the buyer’s lawyer.
When Do You Need a Real Estate Lawyer?
When purchasing or selling a home, a real estate attorney must officially record the property transfer through the land registry office in your province. These legal professionals typically utilize Provincial Electronic Land Registration Systems, which you should also possess access to. Legal professionals must register properties and purchase homes to ensure compliance with provincial regulations.
While many real estate transactions in Canada use standard form agreements created by realtors, a real estate lawyer in Markham will review and amend these contracts to ensure they meet specific needs or situations. They also perform a title search to ensure no liens or materials on the property. They can help you understand and obtain title insurance, which is becoming more common in Canada.
Can A Real Estate Lawyer Represent Both the Buyer and the Seller?
Having the same lawyer represent the buyer and seller in real estate transactions is often considered a conflict of interest due to frequent conflicts between the parties involved. The seller prioritizes the highest price and best terms, while the buyer prioritizes the opposite. A single attorney representing both parties may face challenges in balancing opposing objectives.
Dual representation also increases the risk of malpractice claims, as either party may later believe they only appeared partially if the transaction fails. Each party should have an advocate to negotiate and advise in their best interests. It is jeopardized when one lawyer tries to balance the interests of both parties.
Conclusion
Engaging the services of a real estate attorney as a seller can facilitate the smooth closure of a transaction, shielding you from potential liabilities and minimizing stressful complications. A real estate attorney can assist sellers by drafting contracts, providing general advice, resolving title issues, negotiating transaction terms, and reviewing closing documents. Sometimes, the seller’s attorney prepares and closes the transaction.