Do I Need A Lawyer to Buy a Home?

Why You Need a Real Estate Attorney in a Home Purchase Transaction

The purchase of a home will often rank as one of the most important financial transactions in a persons life, certainly the largest. Buying a home can be exciting, as home ownership represents freedom and independence from having to pay rent each month which is building a landlord’s equity.

There are many financial benefits to home ownership as well, including tax incentives, and the potential to build equity as the property appreciates in value and you amortize your principle balance.

Many first time home buyers are not exactly aware of what is in their best interest. This is where a good real estate attorney comes in. They truly are your trusted advisor, in that they have absolutely no financial interest in details such as the price you pay for the home, or the mortgage rate that you get.

Their job is to make sure that you understand the home purchase process, and that you understand every piece of paper that is put in front of you. These are legally binding contracts, from the purchase and sales agreement, to the initial disclosures, home inspection reports, to the mortgage documents at the closing table.

How to Find a Good Lawyer

You want to choose a lawyer that puts an emphasis on Real Estate. Even though lawyers are not technically allowed to advertise “Specialties”, obviously some lawyers are far more experienced than others in certain areas.

You certainly want to get a referral and this is a time where you want to look to an experienced relative, advisor or a friend. You probably won’t have much luck in the yellow pages.

You definitely don’t want to get stuck in a My Cousin Vinny situation either!

Mortgage companies keep numerous Closing Attorneys on hand that handle real estate conveyance on a regular basis. You can certainly discuss this with your loan officer and they can get you a referral.

An important note about the Lawyer that closes loans for the mortgage company. This lawyer is not working for you, they are hired by the lender to pull title, write title insurance, prepare the settlement statement and notarize the closing package.

They certainly can work for you as well however, this will require a separate agreement and fee. Never assume that the lawyer who is doing title work for the lender is also working for you, if you have not arranged such a relationship.

When Do You Really Need A Buyer’s Attorney

Any time you are buying a foreclosed home or a home that is a “short-sale”, you certainly want a good lawyer working on your side. These are complex and time consuming transactions and a lawyer has staff that understand the process.

Whenever there are Purchase and Sale Agreement issues like, minor improvements that need to be done prior to close, certain chattel property remaining on the premises or even simple things like appliances that are being sold with the home.

These areas can become quite contentious when they go sour, your lawyer can really help out here.

Any time you are paying cash for a home. The mortgage process is designed to avoid possible title defects. Things like old mortgages, liens, property taxes, water bills and any other possible defects that could come back to bite are ALWAYS avoided when financing is present. This is because the lender requires safe guards against these issues.

You should do the same, even if financing is present.

New construction is an area that can cause major problems and the presence of a good lawyer can help immensely. Things like lot line disputes, title flaws, bad engineering reports, expired permits, un-recorded plot plans, un-released mortgages and sub contractors not being paid can land you right in the middle of a pretty nasty dispute.

Yes, You Need a Lawyer to Buy a Home

In short, a lawyer will provide necessary assistance when things go wrong. Real estate transactions have a very large number of moving parts and a good real estate lawyer is very inexpensive and can save you a HUGE headache.

Will I Be Charged by the Hour?

Obviously different circumstances require different fee structures. A lawyer that is handling a sub-division of land will cost you a bit more than if you are buying a home that has existed for years.

However, most of the time it is standard that the lawyer will only charge a flat fee for buyer’s representation services.

Will I Always Talk Directly to the Lawyer?

Understand that it is quite common for you to deal with a paralegal or office staff during the process. Also know that the lawyer is getting regular updates on your file and any potential issues.

Yes, lawyers themselves are known to lack slightly in the communications area. A real estate lawyer will often be graded and referred by other real estate professionals based on the strength of their inside people. A good lawyer has very experienced people working in their office and these people are usually quite strong in the communication area.

If the staff isn’t calling you back, you may want to look elsewhere?

So, the Indian Chief, A Rabbi and A Lawyer walk into a bar…

Just kidding!

Poli Mortgage Group is a Division of radius financial group inc. Corporate NMLS #1846. radius financial group inc. is an Equal Housing Lender. Poli Mortgage Group is licensed in CT, DC, FL, ME, MD, MA, NH, PA and RI. For more licensing information please visit: https://polimortgage.com/licenses/ or by visiting www.nmlsconsumeraccess.org. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs rates, terms and conditions are subject to change and are subject to borrower qualification. This is not a commitment to lend. The content in this website has not been approved, reviewed, sponsored or endorsed by any department or government agency.

* This radius Pre-Approval/Credit Commitment Promise Contract ("Promise") is made and entered into, as of the date of the last signature below, by and between radius financial group inc. ("radius" or "Lender"), and the below-named Buyer and Seller. In consideration of Seller's reliance on this Promise in entering into a real estate purchase transaction with Buyer, the Parties agree as follows:

PROMISE TO SELLER. In the event that a Seller is induced to accept an offer from, and enter into a purchase and sale agreement with, a radius borrower on account of this Promise in connection either with (a) a radius Pre-Approval or (b) a radius Credit Commitment and the Buyer is unable to close on such Eligible Transaction due to a mistake made by radius (with accurate and up-to-date information) on such Pre-Approval/Credit Commitment (a "Bad Pre-Approval"), then radius shall pay Seller ten thousand dollars ($10,000), subject to the terms and conditions herein as Seller's sole remedy.

PROMISE TO BUYER. In the event that radius issues a Bad Pre-Approval to Buyer on an Eligible Transaction, radius will reimburse Buyer reliance expenses up to one thousand dollars ($1,000) for a home inspection, appraisal, or legal expenses actually paid out-of-pocket by Buyer, subject to the terms and conditions herein. This payment shall be Buyer's sole remedy.

ELIGIBLE TRANSACTION. For purposes of this Promise, an "Eligible Transaction" is a purchase money mortgage transaction for a primary residence (made on or after April 1, 2018) (not made to a radius employee or immediate family member), provided that the loan is a Conventional, USDA, VA, or FHA loan product for either (i) an existing home resale or (ii) a newly constructed home that is to be delivered and closed within ninety (90) days of the P&S.

CONDITIONS. The applicable radius Pre-Approval must not have expired prior to the date of the P&S. Offers/P&Ss cancelled due to home inspection issues or title defects are not covered under this Promise, and this Promise is void if a Bad PreApproval is the result of: (i) a change in Buyer's financial position, (ii) property specific requirements or expenses (e.g. homeowner's association dues/fees, flood insurance, or property taxes), or (iii) loan product availability or underwriting requirements, or third-party actions outside of radius' control.

FUNDS DISBURSEMENT. Any funds due and payable under this Promise will be paid if requested by Buyer or Seller in writing within 90 days of the date of an applicable Adverse Action Notice and accompanied by a fully-executed copy of this Promise. Any payments made under this Promise will be reported to the Internal Revenue Service by radius on a Form 1099-MISC or as otherwise required by then-applicable law. Please consult your tax advisor for any tax implications.