For many people, buying a home is the most important purchase in their lifetime. It is probably the single biggest expense you will ever face, leading you to dream of parties filled with friendly faces, entertaining and barbecues. It’s your place, finally, to decorate your home in the way you’ve always envisioned – a place of your own that can be looked at through the warm tint of rose-coloured glasses. But hidden underneath the real estate postings and online long lists of wants are aspects of buying a home that your real estate agent may not mention, and it’s best to avoid these pitfalls through the help of a lawyer. To avoid the hourly fee, a temptation for home buyers is to forego the use of an attorney and try to do it themselves. Without an attorney, common problems often impede closing such as liens against the property slip by, ready to strike once the deed is in your name.
We’ll look at why real estate purchases are complicated from a legal standpoint, the problems that can arise if you don’t hire an attorney, and how you can feel good about yourself because of the knowledge your attorney brings to the table.
The Perilous Path of Going Solo
The American way of buying a home seems simple enough. You look at houses til you find one, you get a price, you sign some papers. But between all those realtors and lenders, wading through contracts filled with contingencies and disclosures laden with legalese, and even title searches mired in parameters, the prospect of buying can seem daunting.
Here’s a glimpse into the legal minefield you might encounter without an attorney:
Faulty Foresight: The contract for the purchase of your property expresses the terms of that sale, and a lawyer’s informed perspective can catch subtleties that a purchaser might otherwise miss, such as inspection contingencies, repair requirements, or escape clauses. A single perceived throwaway might actually be financially ruinous, requiring the purchaser to take on an ‘as-is’ property even when serious problems lurk beneath its faulty surface.
Title Problems: A clear title ensures that you own your land. Unrecorded liens, boundary disputes, or even simple public record errors could put you in a legal quagmire. The attorney performs a title search, making sure that the chain of ownership is clear, and warding off others who may think they own your land.
Disclosure Dilemmas: Sellers must legally disclose any material defects in the property, but what is a ‘material defect’ can be open to some interpretation? A lawyer may guide you on your buyer rights, and steer the seller to disclose all information – so that you can avoid inheriting serious issues such as structural damage or a messed-up foundation.
Financing Frustrations: Your mortgage documents, ominous though they might be, are likely filled with double-speak and convoluted clauses, and you could use the guidance of an attorney to sort out the legalese, explain your rights and obligations, and negotiate the best possible deal to ensure no hidden fees or exorbitant interest rates.
Closing Conundrums: The closing process is the end of the home buying process, and it is an overwhelming experience. Without an attorney to work through the paperwork, deliver the documents, and help to answer last-minute questions, your closing could be delayed at the last minute or what you thought was a non-issue could actually jeopardize the entire transaction.
The Superhero of Home Buying: Your Real Estate Attorney
Your realtor is there to answer questions about the house, but the real estate attorney is there to answer questions about the transaction. That’s why she’s not just a real estate lawyer but your real estate attorney. She doesn’t just represent you in court. She’s your home-buying superhero. Here’s why.
Contract Crusader: Your lawyer reviews the purchase agreement to protect you before you sign anything. He or she negotiates a good deal, explains vague terms, and makes sure the contract says what you want it to say. For example, your lawyer can make sure the inspection contingency allows enough time for you to have the property thoroughly inspected for problems, or to negotiate a credit for repair if unexpected problems are discovered.
The title examiner: Attorneys scour the property’s title for any hint of ownership claims or liens that could interfere with your buying it. Years of ownership are turned over and sifted for relevant information, the seller’s right to sell is confirmed, and the transfer of ownership has wheels put under it to make it happen. Think of title examiners as title detectives. Within the walls of their offices, they turn back the clock on a property’s legal life so that it can come forward into your ownership with a clean and safe past.
Seller disclosures are like quicksand: You don’t want to get stuck, but you need an attorney to get yourself out Contractor: A lawyer will point out any inconsistencies and/or things not disclosed. He will also help you understand red flags (e.g., repairs performed or underlying issues with the property) so you can determine how you want to move forward in regards to buying the property and potentially inheriting these issues.
Banker In Chief: Mortgages are about as lawyerly as it gets. Your attorney will translate important provisions, advise you on issues such as your ability to prepay or refinance your mortgage without penalty, or what kind of interest rate you can get through ‘setoff’, and try to secure the most advantageous loan terms possible. Your attorney can bargain with the lender on your behalf, potentially saving you thousands of dollars over the life of your mortgage. And your attorney can confirm that your loan agreement is within the law and complies with all the requirements of the law.
Sealing Ceremony: From start to finish, closing can be time-consuming and complex. Throughout the transaction, your real estate attorney will educate you, help you through the paperwork, and ensure that all documents are correct toward finalizing your home purchase smoothly. They serve as your advocate by officially sealing the deal on your new house.