{"id":5904,"date":"2024-08-05T06:42:00","date_gmt":"2024-08-05T10:42:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=5904"},"modified":"2024-08-05T06:42:03","modified_gmt":"2024-08-05T10:42:03","slug":"can-working-with-a-real-estate-attorney-instead-of-an-agent-save-you-money","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/can-working-with-a-real-estate-attorney-instead-of-an-agent-save-you-money\/","title":{"rendered":"Can Working with a Real Estate Attorney Instead of an Agent Save You Money?"},"content":{"rendered":"\n
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A lawyer can guide you through a real estate transaction. A lawyer can prepare (or check) your paperwork, represent you, and advocate for you. A lawyer runs the title searches, ensuring that the seller has a good title<\/a> to transfer. Real estate attorneys also handle settlements.  <\/p>\n\n\n\n

And yes, using a lawyer rather than a real estate agent can save you a good deal of money. But will the savings be worth it? Let\u2019s take a look.<\/p>\n\n\n\n\n\n\n\n

First, What State Are You In? <\/h2>\n\n\n\n

In some states, lawyers handle real estate transactions as a matter of course. Among these states are Alabama, Louisiana, Mississippi, the Dakotas, Oklahoma, Maryland, Wyoming, Rhode Island, and Vermont. And lawyers (independent of the title companies) handle closings in New York.<\/p>\n\n\n\n

But most everywhere else, it\u2019s OK to transfer a deed without a lawyer<\/a>. And some people do get their state\u2019s standard purchase agreement and fill it in. In some states where there\u2019s a choice, people may instead use a limited-service broker to save both money and time.<\/p>\n\n\n\n

Or the seller and buyer can work directly with the title company \u2014 perhaps the last one involved with the home\u2019s title \u2014 to get the paperwork done. Title companies have the basic contracts, and can issue  the necessary title insurance<\/a>. The title company can give guidance on everything from finding a mortgage lender to recording the deed. <\/p>\n\n\n\n

What Can a Real Estate Attorney Do for a Seller?<\/h2>\n\n\n\n

A seller needs a sales contract laying out the price of the home, facts about the home, buyer and the seller details, and deed transfer information. Your lawyer can draft a contract to meet the legalities of the state where the sale will happen. If you wish, your lawyer can help you negotiate the terms. <\/p>\n\n\n\n

When you go to sell, you need to know if there are liens, legal claims, or title defects that need resolutions. Your real estate attorney can pinpoint and clear these issues.<\/p>\n\n\n\n

If your buyer is using a lawyer, you\u2019ll want your interests represented by your own advocate. In any case, each party must disclose to the other how they are being represented in the sale. The parties should be sure one person\u2019s agent isn\u2019t taking a whole 6% if there aren\u2019t two agents. <\/p>\n\n\n\n

What Can a Real Estate Attorney Do for a Buyer?<\/h2>\n\n\n\n

Found the house you want on your own? A lawyer with real estate experience can help you buy it. Your lawyer can give you legal advice and draft your contract.<\/p>\n\n\n\n

The lawyer can also negotiate the price<\/a> (taking into account necessary repairs). The lawyer can facilitate a cancellation when legally appropriate. But first, a good lawyer works to resolve disputes between the parties.<\/p>\n\n\n\n

The parties to a deed transfer may\u00a0<\/strong><\/em>create the deed<\/em><\/strong><\/a>\u00a0themselves. They can still have professionals draft their sale and mortgage documents. \u00a0\u00a0<\/strong><\/em><\/p>\n\n\n\n

Need a recommendation for a real estate attorney? When you find a good mortgage consultant, ask for names of local lawyers with closing experience. Or ask a loan officer about using the bank’s lawyer for the closing. The bank’s lawyer could be available to review your title and closing documents. You\u2019ll only find out if you ask.<\/p>\n\n\n\n

How Much Savings Can You Get by Using a Lawyer, and Not an Agent?<\/h2>\n\n\n\n

With agents, most real estate deals run up a five-figure total in agent fees. Most agents (on each side of the deal) are paid a hefty 2.5% or 3% of the home price. (But remember: agents\u2019 fees are negotiable!<\/a>)<\/p>\n\n\n\n

You can get attorney services that you pay for by the hour. Or you can have the attorney handle the full transaction for a flat fee. Depending on location and experience, a real estate lawyer might charge a flat fee somewhere in the $3K range. You\u2019ll need to call for a consultation and ask about your payments options.    <\/p>\n\n\n\n

Don\u2019t forget the other fees you\u2019ll pay. You\u2019ll hire a home inspector so you know what repairs and replacements need to be carried out, and how soon. And you\u2019ll need the services of an appraiser, to create a trustworthy evaluation of the home\u2019s fair market value. The lender will need an appraisal if you plan to finance the home.  <\/p>\n\n\n\n

Line Items: What Can a Lawyer Do For You?<\/h2>\n\n\n\n

An attorney can:<\/p>\n\n\n\n