No, you have the right to choose your own attorney. In most states, an attorney is not required to make a real estate transaction, but it is recommended. In New York, property law can get complicated and it’s common for both sellers and buyers to retain legal counsel.
Do I Need a Real Estate Attorney?
If you’re looking to buy or sell real estate in New York or New Jersey, having a real estate attorney can make a big impact on your final numbers.
For first-time buyers, this intensive process can be overwhelming. Not only are you dealing with large sums of money, but New York property laws can get tricky. A buyer’s agent can be helpful, but a real estate attorney is a great investment as they will ensure you are getting the best deal.
Legally, you can buy and sell real estate without an attorney– but it can be risky. Choosing not to use an attorney is also highly unusual. Ninety-nine percent of New York real estate transactions involve legal representation, for both the seller and buyer.
Why Do I Need an Attorney to Buy and Sell Property?
According to New York law, all real estate sale contracts must be drawn up by the principle or their attorney. Real estate agents and brokers cannot draw up sales contracts, although this may be legal in other states. Additionally, real estate agents and brokers cannot review sales contracts or legal advice.
- For one of the most important purchases of your life, it’s ok to ask questions! But a real estate attorney has the experience to help you ask the right questions.
- For first-time buyers, it can be difficult to get a mortgage loan without legal representation.
- A real estate attorney will conduct due diligence, which is a thorough investigation of the physical property and any financial implications. Due diligence can inform you of potential issues or risks, such as pest infestations, presence of toxins (such as lead paint), or traces of mold.
- And finally, an attorney can address any financial risks or questions you may have.
What Happens If I Don’t Use an Attorney?
If you choose not to hire a real estate attorney and you are not an attorney yourself, the sale contract may be devised by the seller’s attorney, leaving you vulnerable.
During the pandemic, some have used the uncertainty to push against contractual obligations. Those without representation could be at risk of a buyer or seller trying to renegotiate or cancel the contract.
What Do Real Estate Attorneys Do?
A real estate attorney is licensed to practice law and can represent sellers, buyers, or lenders. Specializing in real estate, a real estate lawyer can guide you through the entire purchasing process.
A real estate attorney’s responsibilities begin long before the contract signing. Services provided by a real estate attorney will usually include the performing of due diligence, the negotiation of a fair deal, and the representation of the client at the contract closing.
At closing, a real estate attorney might negotiate repairs, check and verify financials, review titles, and organize the mortgage legal paperwork for the buyer.
What to Expect From Your Real Estate Attorney
Your real estate attorney wants to get you the best deal possible. It’s a good idea to make the most of their experience and expertise. You may want to ask your attorney to:
- Review the contract
- Handle loan and title commitments
- Check for liens and other claims against the property
- Negotiate a reasonable price
- Verify financial statements
- Review previous years’ board meetings
- Review offering plans
- Document other information (i.e. future construction, change in amenities)
- Discuss closing costs like the NY mansion tax, mortgage recording tax, or transfer tax
- Attend the closing
- Handle title and closing documents
- Confirm title transfer
- Address any lingering questions or concerns
Do Real Estate Attorneys Save You Money?
The price of real estate may be set by the real estate agent, or agreed upon between the parties’ agents, but a real estate attorney can help protect your interests. An attorney can help ensure you are getting a fair deal.
Due diligence by your attorney can help determine whether the history, condition, or plans for a property have been taken into consideration. Your attorney may point out potential issues that could be reflected in the price. For example, if your attorney finds that an apartment is listed as a 2BD when it only meets the legal requirements for a 1BD, they may be able to negotiate a lower price.
When buying and selling property in New York, a real estate attorney is a great investment and can help save you money in the long run. Hiring a real estate attorney provides you with an expert eye and peace of mind. And by using a real estate attorney, you can ensure the smoothest transaction, from first glance to final handshake.
Our attorneys at Laird Law specialize in real estate. With experience in residential, commercial, cooperative, and condominium property law, our team of experts will help you protect your interests every step of the process. For one of the biggest purchases of your life, make sure you’re backed by our legal expertise.
