Do I Need an Attorney When I Buy or Sell a Home?

One of the first topics I wanted to cover on this blog is the need for an attorney when either buying or selling a home. This is the question I get asked about the most from family, friends, and colleagues. The short answer is YES. You are better suited having an attorney represent you in such an important transaction.

THE CONTRACT AND BEGINNING OF THE DEAL

Whether you are a buyer or seller, having an attorney from the outset will help you navigate the home buying/selling process and help lead you to a successful closing. Once you are ready to buy/sell a home, an attorney will help you negotiate the contract and make sure you are both (i) adequately covered by and (ii) actually understand its terms. Many times, the FAR BAR contract (the standard form of contract from the Florida Bar and the Florida Association of Realtors) is utilized to help streamline the process. Your realtor will most likely be a great resource here and will help with the process, but ultimately an attorney is the most familiar with its terms, meanings, and consequences. Because the FAR BAR contract is a standardized form, it may not cover everything specific to your transaction. The right attorney will help prepare, negotiate, and finalize your real estate contract to best protect you and your interests.

DUE DILIGENCE AND INSPECTIONS

Once the contract has been executed, the parties move into due diligence.

From the buyer side, an attorney will help you with:

• Explaining important dates, keeping track of and calendaring same, and being a resource and constant reminder as important deadlines loom;
• Acting as escrow agent and holding your deposits in accordance with the terms of contract and applicable Florida law;
• Coordinating with Seller on deliver of all property due diligence materials; such as prior title policy, prior survey, existing warranties, etc.;
• Ordering a title commitment, survey, lien searches, and other third-party reports needed;
• Reviewing title, survey, lien searches, and all other due diligence items;
• Working with the Seller, Seller’s attorney, and title company to resolve any issues that may arise, especially as it relates to title and survey; and
• Managing other potential processes, such as in the case of a condominium or homeowner’s association, getting approval, estoppels, assessment information, and other relevant documentation.

From the seller side, an attorney will help you with:

• Explaining important dates, keeping track of and calendaring same, and being a resource and constant reminder as important deadlines loom;
• Potentially acting as escrow agent and holding your deposits in accordance with the terms of contract and applicable Florida law;
• Handling any due diligence requests from the buyer;
• Dealing with any title/survey issues; and
• Overall, helping you get past inspections and move your transaction forward.

CLOSING

If the buyer has decided to move forward with the purchase, then both sides begin to prepare for closing.

From the buyer side, an attorney will help you with:

• Guiding you through the loan process;
• Communicating and dealing directly with your lender;
• Reviewing and negotiating loan documents;
• Preparing any potential corporate and LLC documentation;
• Reviewing seller drafted closing documents (such as the deed, bill of sale, seller closing affidavit, etc.); and
• Acting as the closing agent and facilitating the handling of escrow and closing proceed disbursements on the day of closing.

From the seller side, an attorney will help you with:

• Working with the buyer side on all closing matters;
• Drafting the appropriate seller closing documents (such as the deed, bill of sale, seller closing affidavit, etc.);
• Coordinating the execution of documents and the closing of the transaction.

CONCLUSION

When it comes time to buy or sell a home and you ask yourself: do I need an attorney? Now you know the answer is YES. If you are buying or selling a home (or any property) and have any questions, want to discuss any of the above, or would like to engage a real estate attorney, please do not hesitate to contact me.