Hiring a real estate attorney is one of the most important decisions to consider when first becoming involved in real estate investing. The right Attorney will keep one on tract and lessen the liability in investing in real estate. For a real estate amateur, buying or selling a home without an agent, a real estate lawyer will always be of assistance in order to look into matters which he or she may not be aware of.
Steps to hiring a Real Estate Investing Attorney.
Make a list of Attorney’s
Through contacts (friends, family members, colleagues, bar-association members), make a list of lawyers.
Screening
Next, find out everything about the listed attorneys and then do an initial screening shortlist three or four prospective attorney candidates:
Few things to pay attention to on screening:
• Analyze the biographies and Web sites for the attorney and their law firms
• Experience in the law field, especially in law pertaining to real estate
• Go through a few client testimonials and other references of the attorney
• Check out the archives of your local newspaper. Has there been any publicity about the lawyer or the cases that he or she has handled?
• Ask about conflicts of interest. Does the lawyer represent any opposing parties? Does the lawyer represent any of the competitors?
There are basically two types of real estate lawyers: those who handle lawsuits (called litigators) and those who primarily handle contract matters (called transactional lawyers). Some lawyers do both, but most of them tend to specialize in one area or the other. If you are involved in a lawsuit or may end up in one, look for a litigator. Otherwise, a lawyer who handles transactions may be your best bet.
Tips & Warnings
• Start with the easiest, least expensive steps an attorney can perform first. Sometimes a little help is all you need.
• Attorneys are willing to handle multiple tasks for a fixed price or retainer.
• Make sure the attorney specializes in real estate and has expertise in the areas required
• It is preferable that an attorney also be a licensed real estate broker.
• Real estate brokers are not attorneys and cannot give legal advice.
Pros & Cons of Hiring an Attorney
If not a seasoned buyer or seller, it would always be safe to hire an attorney in order to look at things like zoning or permitted use laws, neighborhood or condo association by-laws, environmental restrictions, tax issues, and all of the other sections that can pop up in future.
A Real Estate lawyer will add cost to the transaction because of his or her fees. While these costs are usually not excessive, they are a consideration. Using a Real Estate lawyer may cause the deal to close at a later date due to his or her need to review and revise the purchase and sale agreement.
About the Author
Marcell Corkern is a writer and active Real Estate Investor and specializes in investments of residential real estate and residential mortgages
