Real Estate Law: When Do I Need an Attorney?

To the question, “When should I hire a real estate attorney?” there is an easy answer: “Whenever you think you need one.” The question rarely arises in residential real estate, and maybe it should. Buyers and sellers are involved in a legal transaction and small errors can have huge consequences. It is important, then, that you understand both your real estate agent’s limitations and your own and when a transaction has surpassed them both.

Unless your agent is also a lawyer, not only should he be using pre-printed forms, you should expect and demand it. The purchase agreement is a legal form and needs to be drawn up by a lawyer. That does not mean that you need hire a lawyer to do so. In most cases, everything is taken care of in the pre-printed forms available from brokers or even from regional Real Estate associations or boards. Your agent will most likely use them for every transaction and would never dream of doing anything else.

Where you may find you want to use the services of a lawyer in when you need to stray far from the boilerplate offered in the pre-printed forms. Agents write addendums to most offers as a regular course of business. However, a wise agent will know the limit of his competency in this matter. Problems arise when the legal understanding of something an agent has written in unclear or counter to the agent’s intended meaning. An agent’s general use of addendums is very limited. It is you money on the line. Be quick to ask, “Are you comfortable writing that up or should I get a lawyer involved?” Sometimes, even good agents are hesitant to suggest that you will need to spend more money and get another person involved. They know that many clients simply will not understand why the agent cannot handle everything. It is in every one’s best interest, however, that no one try to act like a lawyer, except the lawyers.

Also, be aware that the papers you are filling out with your agent are legal documents. The seller’s disclosure is a legal document and if a problem arises, it will be used as such in court. Your agent should play no part in filling out the disclosure. He should offer you no help and make no suggestions, with a few exceptions, such as be honest and forthright and disclose everything.

Most real estate transactions take place without the buyer or seller hiring an attorney, and most of these transactions do not end up in court. However, when agents and clients try to act beyond their ability and try to act as lawyers when they are not, that is when the trouble starts. Expect your agent to limit himself to his areas of expertise, and, if necessary, be willing to make a short-term investment in the services of a real estate attorney. It could save you a court battle down the road.