Purchasing a home is a goal many of us share, but the journey to home ownership may be a long and strenuous one. The process involves a lot more than just house hunting, making an offer and moving in. Figuring out your budget, speaking with mortgage broker who will divulge exactly how much you’re pre-approved for, possibly hiring a real estate agent and preparing for the closing day are all steps you need to keep in mind when preparing to buy a home. One of which includes a real estate lawyer.
If you’ve already purchased a home, you are aware of the fact that hiring a real estate lawyer is required. Unlike having a real estate agent, there is no workaround when it comes to hiring a real estate lawyer. It is necessary and crucial.
In this blogpost, we explore why having a real estate lawyer is so important and how much of an impact they make on the homebuying process.
What is a Real Estate Lawyer?
A real estate lawyer is a professional hired to handle all of the legal matters that arise during a real estate transaction, whether it relates to buying or selling a property. The job of the real estate lawyer is to essentially map out the framework of the entire transaction, guiding the buyer or seller and protecting their interests.
So, why is it crucial to hire a real estate lawyer? Here are three reasons as to why hiring one is necessary.
1) Reviewing Legal Documents
When you’ve finally “locked in” and are committed to a particular home or you’re preparing to look at homes and looking into how much you would be pre-approved for, a real estate lawyer will enter the equation. When you hear someone utter the words “a real estate lawyer skims over contracts,” they are doing a lot more than that.
In fact, a real estate lawyer will review legal documents that may be difficult to understand for someone who isn’t in the industry and will ensure they serve their clients’ best interest. A real estate lawyer will examine all of the terms and conditions in legal documents which include contracts, through a magnifying lens. These legal documents include agreements of purchase and sale, title documents and mortgage documents. During this process, they will flag anything they see that raises concerns, ensure all terms and conditions are fair to their clients, verify a property’s authenticity and guide you through your mortgage agreement, ensuring your rights are protected.
2) Ensuring Clear Ownership
A real estate transaction is more than just finding a home, getting your keys and moving in. We’ve mentioned a real estate lawyer is responsible for reviewing legal documents such as contracts, mortgage documents and title documents. Diving deeper into title documents, real estate lawyers are required to conduct a title search and ensure there are no outstanding taxes held on the property.
Prior to closing, your real estate lawyer will examine the property’s legal history to confirm there are no legal or financial issues. This process includes verifying that the seller is on the property title. Additionally, the real estate lawyer will also investigate if there are any outstanding mortgage payments on the property, any contractor liens (unpaid home improvement work associated with the property) and restrictions on the property. If there are any unresolved issues with the home, you may be held responsible for rectifying them. Thus, this is where a real estate lawyer comes handy because their goal is to look out for your best interests.
3) Closing the Real Estate Transaction
When you speak to a homeowner, they’ll fill you in on the stress they’d experienced during the closing day, pointing out that it may have been one of the most worrisome points of the entire transaction. This is due to several factors including large fund transfers (your downpayment, closing costs and mortgage costs), ownership is transferred to the buyer and the legal transfer of ownership.
Before you get your keys to your new home, everything has to be sorted out. Money has to be successfully transferred, mortgage funds have arrived from your lender and ownership is officially transferred to your name. When or if issues arise, you want your lawyer to be your guide. Last minute issues may include mortgage funding delays, missing signatures, title issues and there may be unexpected taxes and fees.
“There’s always something that comes up at the last minute when you’re trying to buy a house,” says Jacob Murad, President of KPA Lawyers and Managing Partner at Bluestar Law. “Sometimes there are last minute issues and when those last minute issues come up, the lawyers are the ones that help you navigate through those issues so that you can close and take ownership of your home. It’s very important that you use the lawyers as much as you can so that you can finally get the keys to your home.”
Key Takeaways
Home ownership is a journey full of highs and lows, but its not an easy one. Looking for homes, getting the keys and moving in are the highs, but reviewing and signing paperwork, ensuring your home is legally ready for title transfer and all of the activity taking place leading up to and on closing day are overwhelming. A real estate transaction is more than just a real estate agent showing you beautiful homes or you looking for homes on an app and sending them to your significant other. A real estate lawyer is a necessary component of this entire journey and really is “the star of the show” because they’ll work to make your dream a reality by handling all of the logistics “behind the scenes.”
Are you looking for a real estate agent? Our team of real estate lawyers are ready to guide you along your journey. Book a consultation today!
