What Do Real Estate Attorneys Do?

Find out How They Help Homebuyers and Sellers

Buying or selling a home or property involves more than just seemingly never-ending paperwork—there can be significant legal and financial risks. Even a small oversight or mistake can lead to costly problems for you. To avoid potential headaches, a real estate attorney can be a helpful resource during this process.

By understanding what a real estate attorney does, you'll know when you need one to help protect your finances as a new or existing homeowner.

What Is a Real Estate Attorney?

A real estate attorney specializes in real estate law and handles legal issues related to property transactions. They often represent buyers and sellers at closing, and their work may include creating and reviewing purchase agreements, mortgage documents, and title and appraisal reports. They can also represent property owners during legal disputes.

Some states require a real estate attorney to manage the closing of a property sale. In other states, the help of real estate attorneys is optional.

What Does a Real Estate Attorney Do?

The role of a real estate attorney involves key responsibilities that include:

• Prepare paperwork: The attorney can draft and review legal documents, home inspection reports, appraisals, and real estate contracts.
• Negotiate: Real estate attorneys can negotiate on behalf of their clients if it's necessary for a transaction.
• Review disclosures: Most states require sellers to disclose information about the property to buyers. Real estate attorneys can help you make disclosures when you're selling a home or understand disclosures when you're buying one.
• Execute title searches: A real estate attorney's due diligence involves title searches to ensure the seller is the legal owner of the property and that there are no liens or financial claims against it.
• Oversee closing: A real estate attorney can ensure that closing documents meet legal requirements and that payments will be distributed correctly.
• Legal advice: Real estate attorneys can provide legal guidance and explain complexities with property rights and ownership, land use, and environmental regulations.
• Resolve conflicts: A real estate attorney can focus on resolving disputes involving property boundaries or landlord-tenant conflicts.
• Offer peace of mind: Closing the sale of a property can be complicated. Many people like having an attorney to help make sure everything goes right.

States That Require a Real Estate Attorney

Some states require you to have a real estate attorney to close on your home, including:

• Connecticut
• Delaware
• Georgia
• Massachusetts
• New York
• North Carolina
• South Carolina
• West Virginia

Other states may recommend attorney involvement or require an escrow or title company to conduct the closing. Research your state requirements or ask your real estate agent what laws may apply to you.

When to Hire a Real Estate Lawyer

There are times you may want to hire a real estate attorney, even when your state doesn't require it. For example, some real estate transactions carry legal risks that may not be immediately apparent.

Issues involving contracts, property rights, or ownership history can create serious problems if they're not handled properly. Hiring a real estate attorney in these situations can provide clarity and protection when it matters most.

When a Real Estate Attorney May Not Be Needed

There will also be times when you might not want or need to hire a real estate attorney. Some considerations when making the decision include:

• How much you're willing to pay: Real estate attorneys charge fees, which will increase the amount of money you pay to complete the sale.
• How simple the transaction is: If your sale is straightforward, you may want to skip hiring a real estate attorney.
• How knowledgeable your real estate agent is: Real estate agents often understand the legal requirements of real estate transactions and can help you with them. A title company or settlement agent may be able to help, as well.

How Much Does a Real Estate Attorney Cost?

Attorneys might charge between $150 and $350 an hour, depending on where they're located. The total number of hours they charge depends on the sale's complexity, the number of issues that arise, and other factors.

Real estate attorneys may also charge a flat fee for simple sales. For example, they might charge you a fixed rate of $1,000 for a home closing.

Final Thoughts: How Real Estate Attorneys Can Help You

Real estate transactions involve both legal and financial decisions that can affect what happens at closing. Understanding when a real estate attorney is needed and how legal guidance fits with financing considerations can help you make informed choices throughout the process.

Working with a knowledgeable mortgage lender like Freedom Mortgage can also provide clarity around loan options, timelines, and other requirements. Explore your loan options today and take the first step toward reaching your homeownership goals.