When Do Home Buyers Need A Real Estate Attorney
Having a real estate lawyer representing you when you buy a home is not necessarily a legal requirement. Practically speaking, making such a large transaction without getting help from a real estate lawyer would be foolish. Many potential pitfalls, both during and after the real estate transaction, make it in your best interest to get help from a real estate lawyer. If you try to go it alone in a real estate transaction, you can end up liable for damages if things go wrong in the transaction. Moreover, you may not have an effective legal remedy if you learn of defects after the transaction.
Therefore, the best answer to the question of when do home buyers need a real estate attorney is – always. You will be making a small investment now, which can help you in both the present and the future. Not only will you make your life easier by not having to handle certain details that may be out of your depth, but you can also protect yourself if something goes wrong with the transaction.
A Seattle real estate lawyer is ready to discuss your situation with you once you reach out and make the call to them. A real estate attorney will provide you with customized legal representation, since there is no such thing as “one size fits all” legal help when you are buying a home.
You Need Help with the Real Estate Sales Contract Before You Sign It
A home purchase is governed by a sales contract. Once you sign a real estate contract, you are obligated to perform in accordance with what you have promised. You will need to pay money to purchase the home from the seller. There may be some outs that you could have if there are problems with the deal. However, you may not simply change your mind if you decide that you do not want the home.
Real estate contracts should have a contingency clause built into them. The exact language of the contingency clause matters. If the seller has a real estate lawyer, and you have not hired one, they will draft the terms of the contingency clause. This part of the contract dictates when you may be able to back out of the deal. If the language is skewed against you, exiting the deal may be much harder, even if something goes wrong. Your real estate lawyer can negotiate the language of the contingency clause to give you the most protection possible if there are snags to the deal.
If you have a robust contingency clause, there may still be disputes during the transaction process that can complicate the deal. The most common area of tension between sellers and buyers is when an inspection reveals issues with the home. You may need to renegotiate the deal if you still want to go through with the purchase. The seller may need to make the repairs on their own, or they may need to reduce the purchase price to allow you to fix the issues. Some issues can be extremely expensive to fix. For example, if the inspection reveals problems with the roof, the repair could cost tens of thousands of dollars. You can decide it is not worth the hassle and you would rather purchase a different home or stay where you are.
A Real Estate Attorney Can Negotiate on Your Behalf When Contingencies Arise
A real estate lawyer can negotiate with the seller’s attorney to see if these issues can be resolved. There is a chance that the deal can be saved, and you can still end up purchasing the home. However, if you try to represent yourself in a real estate transaction, you can end up at a disadvantage. You may not know how to negotiate, or you can be intimidated when the seller’s real estate attorney starts threatening you with potential consequences if you try to back out of the deal.
If there are complex legal issues involved in your residential real estate purchase, your broker may only be able to do so much on your behalf. They have some familiarity with legal issues, but they are not in a position to do much that could affect your legal rights in the future. They may be able to handle some issues relating to your home purchase, but you may not have the confidence that they can do things in a way that can create and preserve your legal rights. Some situations require the extra knowledge and experience a real estate attorney can provide.
There Are Other Special Situations Affecting Your Purchase
There may be other snags that can impact your real estate purchase. One common problem is when you cannot obtain financing for the transaction. Your first or even second application for a mortgage may not be approved by the bank. Depending on the language of the contingency clause, you can end up on the hook for damages. A real estate lawyer can help draft the contingency language to protect you from this situation.
You may also need a real estate lawyer if there are potential zoning issues that can affect you. Zoning laws can dictate how you use your property. You have an obligation to know how the property is zoned. You may need to seek approval or zoning variances for your use of the land. Real estate deals often end up in trouble when buyers research the zoning history of the land and what restrictions may exist.
There can also be restrictions on the usage of the property based on historical limitations. You will need to learn any limitations on the use of the property before you purchase it. A skilled real estate attorney will research and determine those restrictions and or limitations.
You Need Someone to Review Documents Before the Deal Closes
Many documents will be a part of your real estate transaction. Each one of these documents has a legal impact on your purchase. You need to know exactly what you are signing before you affix your signature. Even if you read through all of these documents in painful detail, you may still not know of any issues. A real estate lawyer can review all of these documents and suggest any necessary changes or let you know if there is an issue.
Further, you will also need a real estate lawyer to perform a title search on the property. You need to make sure that the seller actually owns the interest in the property that they are representing to you. There may be encumbrances or liens on the property that may prevent the seller from transferring an undivided interest in the property. In cases of seller take back financing, where the seller finances a portion of the purchase price, it’s especially critical to confirm that the seller has the right to do so. The seller may not have even owned the property in the first place. There may be an easement on the property that you would have never known about by just seeing it in person. Title defects are more common than you think in a real estate transaction and can cause a serious problem. It is up to you to spot defects in the title before the deal closes.
The Seller Is Trying to Back Out of the Deal
Just like you are obligated to go through with the purchase unless there is a contingency that applies, the seller is also required to hold up their end of the bargain. If you have the financing and you pay them the money required by the contract, they must sell you the home. For whatever reason, the seller may be trying to back out of the deal. They could have gotten a better offer from another potential purchaser, or they may have decided that they want to remain in their home.
You may need a real estate lawyer to force the seller to follow through with the transaction. There is a type of injunctive relief that a judge can order that directs the seller to close the deal. You can seek specific performance of your real estate contract. Specific performance is when one party to a contract is forced to hold up their end of the deal. Just like the seller can be directed to go through with the transaction, you can also be ordered to buy the property if there is no contingency that applies.
In reality, specific performance is rare. In most cases, a judge will order one party to pay monetary damages to the other. Specific performance is an extraordinary relief, and it is not always granted.
There Are Defects That You Discover After the Transaction
You will also need a real estate lawyer if you discover defects with the home after the transaction has closed. You may be shocked to learn that there are problems that you did not know about, especially because the seller is under a duty to disclose defects to you that you were not able to see during the home inspection.
Sellers may not be liable for patent defects. These are defects that would have been obvious to any potential purchaser who looked at the home. Thus, you should never waive your right to an inspection before the deal closes, no matter how much the seller tries to pressure you. If the defect was obvious and something that you should have seen, you may not be able to recover any money or get any relief. The seller and their real estate lawyer may argue that the defect was obvious, and it should have been addressed before you went ahead and purchased the home.
You are entitled to relief when there were latent defects that the seller knew or should have known about. If they failed to disclose hidden defects that they knew about, they committed a material misrepresentation. This failure can even rise to the level of fraud. You can file a lawsuit against the seller seeking damages for their failure to disclose. You may also file lawsuits against the real estate agents involved in the transaction, especially those who owe you a fiduciary duty to act in your interests.
Your real estate lawyer can seek several types of relief in a lawsuit. Most often, they will seek monetary damages on your behalf. The seller would need to pay you compensatory damages for the costs you incurred or the diminution of the home’s value. They may even be ordered to pay you punitive damages if you take your case to a jury and win. The jury will need to find that they acted egregiously, and a message needs to be sent.
A real estate lawyer can also seek to have the deal rescinded. This type of remedy is an extraordinary one, and courts do not often order it. A judge or jury is likelier to order the seller to pay you financial damages. However, you can seek to undo the deal after it happens if you choose. The most common reason for the rescission of a real estate deal is when there was a misrepresentation that you relied on during the transaction.
Hire a Real Estate Lawyer Early in the Transaction Process
Real estate attorneys do not just get involved in your residential home purchase when things go wrong. Their work can help create the conditions that can help prevent contingencies from derailing the deal. However, if something has happened that makes it infeasible for you to purchase the home, your experienced real estate lawyer in Seattle may help you get out of your obligations.
When it comes to purchasing a home, it’s easy to get caught up in the excitement and overlook the importance of hiring a real estate lawyer. Many homebuyers mistakenly believe that their real estate agent can handle all legal aspects of the transaction. However, there are several key reasons why you should consider engaging a real estate attorney early in the process.
A real estate lawyer’s work can actually increase the chances that your transaction is successful and you end up with the home that you wanted with minimum hassle. Your hope is that you do not need some of the tougher remedies with which a real estate lawyer may be able to help. Therefore, you should hire a lawyer at the outset of your residential home purchase.
