One of the most common questions I am asked by both buyers and sellers, is whether or not they “REALLY” need to use an attorney for their real estate transaction. My response is an affirmative “YES”. Now trust me, I understand we all want and need to save money, especially in the midst of the gargantuan debt load brought on by a home purchase, but don’t lose sight of the fact that making such a huge purchase is accompanied by potential risks, and one risk that hits home with buyers especially, is LOSING their deposit money.

You’re probably asking yourself, “Well, doesn’t my real estate agent look after me?”. Of course! Yes … well … maybe? If you’re working with a reputable agent, he or she will make sure you ‘generally’ understand everything you sign and that the deal is structured in such a way as to minimize any potential for risk, but your real estate agent is NOT the person to give you a final OK on what you are signing. Your agent is only a fraction of the team of professionals you should have working as part of your team. Your real estate agent cannot and should not make legal recommendations. Let’s look at that statement once again , change it to the first person, add a little bold type and an exclamation point for emphasis … repeat after me … My real estate agent cannot and should not make legal recommendations! All of the documents you sign are ‘legal’ documents. These documents require the careful review of an attorney.

Having an attorney who is aware of your situation from beginning to end can prove extremely useful for those deal-shattering issues that pop out of nowhere. I’ve had a few clients who specifically chose not to use an attorney, and on one occasion, something major happened and they turned to me for advice. There was not one thing I could do for them but direct them to an attorney. Of course the attorney got involved in the middle of the deal, not knowing the history of the transaction, and did the best he could to get the deal back together again. Luckily things worked out for them, but it doesn’t always happen that way.

Well, using the services of a real estate attorney is a VERY important aspect of the real estate transaction process. The attorney can be your legal safety net in a game that involves hundred of thousands of dollars. It’s really that simple!

Posted in: Buying a House, Real Estate Law | Comments(0)

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Posted in: Capital Gains Taxes, Debt, General, Personal Finances, Real Estate Law | Comments(0)