A real estate attorney can become a necessity when buying or selling land. The lawyer needs to be hired before the signing of an offer to purchase real estate at the latest. Many times, though, an attorney’s advice is needed before signing on the dotted line to buy real property. There are many considerations that go into hiring a real estate attorney. Many of them depend upon the type of real estate purchase. Where someone starts depends upon where they are going. It is like hiring a criminal defense attorney. Seeking out a lawyer for a murder charge is much different than finding someone to appear in a shoplifting matter.
This includes the traditional purchase of a home as a primary residence. It also includes buying a second home for vacations. It would also cover a house or apartments for rental purposes. The purpose of the transaction is not the important factor. It is the type of residential purchase
One consideration in hiring the attorney is whether you are the buyer or the seller. In most transactions there is more work for the buyer’s attorney. There are special considerations with the main one being the title search to determine if there are any liens or encumbrances on the property. While it always matters who you hire, a seller has fewer concerns. Check with your State Bar but there are probably rules governing hiring the same attorney to represent both the buyer and seller. If there are no rules, it is always a good idea to have a different attorney represent each side. This would be the first question to ask. Make sure the attorney you are considering hiring has not already agreed to represent the other side. You would probably also be advised to ask if the attorney has ever represented the other side or any member of their family in any legal matter. Avoid any possibility of a conflict of interest.
You can ask your West USA Realty agent 3 or 4 recommendation. In Arizona, a laywer is not required for the standard transation. In other states both sides of the transaciotn will have a lawyer. There will be one the listing agent who was hired by the seller. Then there is the selling agent who actually sold the property to the buyer. In some transactions it is the same agent but many times it is two different persons. The seller would probably ask the listing agent while the buyer would ask the agent who they dealt with in buying the property. You should consider that one of the main objectives of a realtor is closing the sale quickly since they do not get paid until the closing. They may prefer an attorney that moves quickly. While everyone wants to get the deal done, sometimes there is a legal problem that must be fixed prior to closing. It could be a problem with the title to the property. Everyone assumes that the seller has good title, but there are cases where that is not always true. They may be rare but you want your lawyer to get it right, even it that involves a delay. Find an attorney who moves quickly but covers all the bases.
Take the recommendation of the REALTOR as one example. Ask your friends and co-workers who they used when they bought a home or rental property. Contact the State Bar. Ask if they certify residential real estate attorneys as a specialty. If so, get a list of the lawyers who practice in your county or area. Put the lists together and see if there are names on two or more lists. Pick out two or three and make some calls.
The fee for a residential real estate transaction is most likely going to be a flat fee. The price of the home is not really relevant is setting a fee. It is just as much work to represent the buyer of a $100,000 home as it is for a $300,000 home. However, you may find some attorneys who charge more based upon the sales price. If so, ask why the fee is higher. They may well say it is based upon their liability which is greater for the more expensive property. If the purchase is a rental or a different type of transaction like a condominium, ask if the lawyer routinely handles such matters. Experience in real estate is very important. Good real estate lawyers may close several properties each business day. You want someone who has dealt with almost every type of problem.
In almost every real estate transaction, the attorney fee is part of the closing costs. The client does not pay any money until the day of closing. The fee is included in the amount of money the buyer pays at closing. For the seller, the fee is deducted from the proceeds along with other closing costs. Make sure you know the amount of the fee prior to hiring the attorney. Ask if the fee is ever increased due to unforeseen circumstances after the lawyer starts working on the closing. A lender provides an estimate of the closing costs. IF you have that estimate, show it to your attorney and see if he or she agree with the numbers
One more consideration is to ask who is the contact person at the law firm. When you call who do you ask to speak with about your case? Some lawyers or law firms will have paralegals do most of the work. An experienced real estate paralegal can do a fine job, but you need to know who is actually doing the work. In particular, ask who is performing the title search at the courthouse. While most title searches are routine, there is the occasional one that requires an attorney to make the judgment about some unusual problem.
Your Phoenix Real Estate Agent will provide the title search information to a title insurance company, so ask your agent about title insurance and find out what company they have used and generally how much it costs. Title insurance is required by virtually every lender. It pays off if any title problem arises in the future. It is valuable protection. The attorney and real estate agent you hire need to provide the coverage for not only the lender but also for the owner.
For most people purchasing real estate, whether a home, or rental property is one of the largest single money transactions in their life. It is therefore very important to be totally informed about the fee, costs, money to be brought to closing, and what the lawyer will or will not be doing for the client. Care needs to be taken when hiring a real estate attorney. Do not rely solely on a realtor, friend, or State Bar list. Ask for a free consultation.