In California, You're Not Required to Hire a Real Estate Attorney to Buy a Home. However, some loan and mortgage companies require you to use an attorney. In these cases, you may want to get a referral to a real estate lawyer who understands the nuances of real estate law for your specific area. While some states require each party to a real estate transaction to hire an attorney to represent their interests in the closing, California does not.
In quite a few states, real estate agents have limited liabilities. They simply help the seller to set the price of a property and find a buyer, they often schedule open days to show the property. The seller in these states hires an attorney to handle the closing proceedings. However, in California, real estate agents are tasked not only with setting the price of the property and finding a qualified and willing buyer, but also ensuring that all required forms are completed and exchanged.
These include the sales contract, as well as some complex legal forms called disclosures. California real estate law requires a seller to tell prospective buyers a lot about the condition of a property, features, problems, defects, pest problems, and essentially anything else they know about the property that could influence a buyer buying or not buying. In states where the presence of an attorney is required at the time of closing, the lawyer may be present only to represent the buyer's lender. You will need to hire an attorney yourself if you want someone to represent your interests exclusively.
Requirements governing real estate attorney participation vary from state to state and even within states, such as California, where rules differ by county. However, a seller can consult with a real estate lawyer, and there are several circumstances in which this may be a good idea. When the seller and buyer are represented by the same real estate agent, or are represented by two separate agents working for the same agent, this is called a dual agency relationship. Although real estate agents often play a central role in the preparation of purchase contracts, a lawyer could provide a review of the terms of the purchase contract.
When a person is ready to buy or sell real estate, a real estate lawyer can represent either the buyer or the seller, but not both. If you are considering selling your home without resorting to a real estate agent or broker to save on commissions, there are three important things to know. A lawyer may specialize in sale and lease transactions, including negotiating agreements and drafting contracts to reflect those agreements. Having an attorney involved in the process will give you peace of mind that the sale is being handled correctly and that your interests are protected.
If your mortgage lender requires an attorney to be present at closing, whether the buyer or seller covers the cost of the closing lawyer will depend on how your real estate contract was negotiated. These lawyers have experience and knowledge of real estate law and, in some states, are a necessary component in preparing home purchase documents, title searches and closures. This consent is normally provided in a form titled Disclosure of Relations with Real Estate Agencies, which identifies the broker and agents involved in the transaction and the parties they represent. Real estate lawyers evaluate potential settlements by verifying the history and title of the property to ensure that no one is going to claim the property later.
Real estate lawyers and real estate agents are professionals who list real estate as their area of expertise. If you just have the feeling that something could go wrong or you want to make sure that all your bases are covered, having a real estate lawyer on your side can be very beneficial. While California doesn't require you to hire a real estate lawyer to buy a home, it doesn't change that real estate transactions are complicated. .
