What Does a Real Estate Attorney Do?
Buying or selling property is an exciting and significant milestone in your life. However, the real estate process can be overwhelming and complex, with numerous legal and financial considerations. A real estate attorney can play a crucial role and provide the guidance and protection you need throughout the transaction.
You can always benefit from the help of an experienced real estate lawyer in any real estate transaction.
Every real estate deal involves a written contract, as no oral contract can cover these complex transactions.
Numerous legal issues can emerge with the contract. From drafting to negotiations to disputes, real estate lawyers handle every stage of a transaction. If you do not have a real estate lawyer representing you when you need one, you place your legal rights at risk, and you may even suffer financial losses.
To understand why you need a real estate lawyer in Tacoma, you must know what they do and how they can help you in all property matters.
Providing You with General Legal Advice
Real estate transactions involve much more than exchanging money and property. Many legal issues can impact any deal, both during the transaction and afterward.
You must deal with numerous legal issues if you engage in a complex commercial real estate transaction.
For example you must know how the local government has owned the property before the transaction closes. You may also need to know about and follow environmental compliance regulations. The legal landscape presents many challenges, and you need to consider it before you agree on the contract terms. You may lose your right to get legal relief after you sign the contract.
If you are an individual signing a residential real estate deal, you need a lawyer to explain what you will agree to before you sign the contract. Again, failing to understand the terms does not relieve you of the agreement’s requirements, and you need to get legal help to understand its extent and terms.
Real estate transactions involve many legal documents, such as purchase agreements, contracts, and titles. It is easy to get lost in the paperwork and miss important details that can have long-term consequences.
A knowledgeable attorney will review and interpret these documents, identifying potential issues or loopholes and ensuring they protect your rights. It helps to be proactive and seek help and guidance before the transaction so you know how to proceed.
Drafting and Reviewing Contracts
The terms of a written contract govern every real estate transaction, whether for a lease or purchase of a property. A legal principle known as the statute of frauds states that no valid oral contracts are valid in real estate and that people must commit transactions in writing.
Contracts are binding legal documents once you sign them. Each party has rights and obligations under the terms of a contract and must promise to do something that benefits the other party. In the standard real estate contract, one party promises to pay the other in exchange for ownership or use of the property.
In every case, a contract is more complex than an exchange of money for property, and there are lengthy contracts that govern each deal that impose additional terms.
For example, numerous clauses will protect you if you purchase a home. A contingency clause allows you to back out of a deal to buy a home if the inspection reveals specific issues and you cannot agree with the seller to fix them or reduce the purchase price.
In a commercial real estate transaction, some terms set which party pays for utilities and who is responsible for repairs. These are just a few of the many clauses that you will find in a real estate contract.
Each word, even comma, in a real estate contract is essential. If a dispute between the two parties goes to court, the judge will go straight to the contract’s language as part of the ruling. The judge will do nothing else to decide the case than apply the facts to the terms of a clearly written contract. Unfortunately, many vague real estate contracts require a judge to use contract interpretation.
The last thing you want is to end up in uncertain situations. Therefore, refrain from trying to draft contracts on your own or rely on an off-the-shelf contract you find online because it may not apply to your situation.
A real estate attorney can draft contracts for your use. Even if they use a standard contract as a foundation, they can adapt it and add clauses covering your specific circumstances.
Then, a real estate attorney can review any contract someone has handed you. Chances are that any party who has drafted a contract has included terms that are beneficial for themselves.
If you sign what they give you without asking a lawyer to look it over, you can end up at a disadvantage. You will need a lawyer to review the contract to learn of any issues and inform you of what you are signing.
Negotiating Terms of the Deal
The more complex the real estate transaction, the more customized the terms may be. For example, commercial real estate contracts will have lengthy sales contracts that reflect extensive negotiations between the parties.
You will need an experienced real estate lawyer to deal with the other party, mainly when legal issues result in any gaps in your positions.
One example of an area where a real estate attorney may be helpful is if an inspection reveals severe issues with the property. You may have agreed on specific terms, but now you have realized that there are far more issues with the property. At this point, the entire transaction may be in jeopardy.
A real estate attorney may negotiate any deal terms with the other party’s attorney when they review the terms of a contract. Your real estate lawyer may suggest changes to the contract when they mark up the language if the clauses do not reflect what you want. The other party may negotiate through their real estate attorney, who will mark the documents and return them to your attorney.
The lawyers may exchange multiple document drafts to agree on the correct language, which is how they will negotiate the deal. They may even have phone calls and in-person meetings to hammer out any differences to get you closer to reaching an agreement.
Representing You in a Dispute
Unfortunately, manner real estate transactions can result in disagreements between the parties during or after the deal. Even if there is a well-drafted contract, two parties may end up in a disagreement.
An example of a common type of real estate disagreement is when defects are found in the home after the two parties close the transaction, and a buyer may accuse the seller of failing to disclose material defects. Had they known of the defects, they may not have bought the home in the first place or paid a lower price.
The home buyer may file a lawsuit for damages or seek to rescind the transaction entirely. The seller may argue that they disclosed all material defects or that the buyer should have seen clearly visible defects.
In a commercial real estate setting, one party may sue another because the transaction fell through entirely; each party may claim that the other failed to do something they had to do by the terms of the contract.
You can also have disagreements about the use of your property. For instance, one party may claim they have a right to use another’s property in an easement. The two parties may negotiate a solution that grants one an easement in exchange for consideration. One party may be squatting on the land of another, and the owner may need to file an action to evict them.
Property issues between neighbors can grow hostile and result in bitter disputes.
Real estate litigation can be expensive and risky, and you can never control the outcome when it reaches a judge for a decision. Along the way, you may incur significant legal fees for representation.
A significant benefit of having a real estate attorney by your side is their experience negotiating and resolving disputes. Buying or selling property can sometimes lead to disagreements or complications, especially when dealing with multiple parties or complex transactions.
An experienced attorney can mediate between the involved parties, helping to find common ground and reach fair and favorable resolutions.
Disputes in the real estate industry often require a skilled negotiator to find a fair and favorable resolution for all parties involved. An attorney can articulate your position, present relevant evidence, and engage in productive discussions with the other party to reach a mutually beneficial outcome.
A real estate lawyer can ensure you attempt to resolve a dispute before it grows into litigation. Many parties may negotiate a settlement agreement that keeps the case from going to trial, and the attorneys may engage early to exchange viewpoints and attempt to reach a resolution.
Your lawyer can even guide you through a mediation session, where they may try to solve the problem as a last-ditch attempt to avoid a lawsuit or trial.
Of course, if your case goes to litigation, you will need a real estate lawyer to represent you.
They can do the following in the litigation process:
- Draft a complaint that begins the litigation or file an answer to a complaint that the other party filed against you.
- Build your case through the discovery process, where you may gather information in the other party’s hands.
- Attempt to negotiate a settlement to the dispute before the case goes to a hearing.
- Present your evidence in court, seeking to persuade a judge or jury if your case goes to trial.
- Handle an appeal if you disagree with the verdict of the trial court.
Both parties to a transaction need an attorney if things become contentious. The sooner you get a real estate lawyer, the better the chance you may resolve the situation without requiring a trial.
Your attorney will guide you through the litigation process, ensuring they present your case effectively and vigorously defend your rights. Their experience in real estate law and courtroom procedures can significantly improve your chances of obtaining a favorable outcome.
When Should You Hire a Real Estate Lawyer?
You should always err on the side of caution and get legal help if you are ever in doubt. For example, if you have agreed to purchase or sell a home, you should contact a lawyer right away if any issues arise in the legal process. The earlier you hire a real estate lawyer, the more effective they can be in helping you.
Furthermore, a real estate attorney can identify and address any potential legal issues that may arise during the transaction. They can conduct thorough due diligence, checking for any liens, outstanding taxes, or legal restrictions on the property. By uncovering these potential problems early on, your attorney can work to resolve them before they become major headaches.
In addition to their legal experience, real estate attorneys often have extensive knowledge of the local market and regulations. This insight can be invaluable when making informed decisions about your property investment. Whether buying a home or investing in commercial real estate, having an attorney who understands the local landscape can give you a competitive edge and help you navigate any challenges.
Call an Experienced Real Estate Attorney Today
Hiring a real estate attorney is a wise investment and a smart move to protect your legal interests and ensure a smooth and successful transaction. From reviewing important documents to negotiating on your behalf, their experience and guidance can make all the difference in your real estate journey.
So, before you embark on your next property venture, consider the peace of mind that comes with having a trusted attorney by your side. Don’t delay – call today!
