Besides purchasing a new vehicle, acquiring a new house is, and probably will be, one of the largest investments you’ll ever make. The process might seem quite straightforward, however, since it’s both a financial and emotional exchange between two individuals, the transaction can, at times, get quite complex and messy.
If you’ll be buying a piece of property in the future, you may be asking yourself whether or not you should hire a real estate attorney. This will depend on a wide range of factors, starting with whether the state you live in requires you to do so all the way to if you want to ensure that everything goes without any hindrances. Nonetheless, here is when you should seriously consider hiring a real estate attorney:
Know That in Some States, It’s a Requirement
Although this is something that is quite obvious, we still must mention the importance of you hiring a real estate lawyer if the state you live in requires you to do so. For instance, some states including Florida doesn’t require you to hire a lawyer for the duration of the process, however, other do, thus, the first step before even looking at some properties is to check and see whether or not you must have a lawyer by your side.
Now, you must remember, even if the state doesn’t require you to have a legal representative throughout the process, there are some situations where you should seriously consider hiring one, especially since it can help you avoid a lot of complex and daunting problems. In order for you to ensure that everything goes as smoothly as possible, here are a few instances when hiring a lawyer when acquiring property is a must:
1. If The Property is REO or Bank Owned
Though you might not have to hire a lawyer due to the state’s regulations, if you’re planning on obtaining a house that is REO or bank owned, you must hire a legal representative without thinking twice about it. Such properties are most commonly taken by the lending organization due to foreclosure, which is something that is common in the US. The banks will offer the properties at a lower cost so that they can return the amount they’ve borrowed to an individual, however, they often market it as an “as-in” house.
So, why do you need an attorney for this situation? Well, since they’ll frequently reject liability for the condition of the house once it is sold, you could end up with a property that has structural issues and since the bank isn’t responsible for them, you’ll end up paying for all the repairs, no matter how large or small they are. If you hire an attorney, they’ll read the fine print of the contract, meaning that they’ll know the condition of the property before you actually purchase it. Hence, you’ll know exactly what you’ll be buying.
2. If You’re Purchasing in a Different State From Your Residence
As you already know, the laws and regulations vary from one state to the next, which means that what might apply to your state won’t apply to others. Because of this, it’s best that you hire a real estate lawyer that works in the state you’re planning on buying the house in, hence if you want to buy a property in Prior Lake, you should then search for Prior Lake Attorneys since they’ll know the regulations and laws in the location they operate in.
3. If You’re Purchasing Commercial Real Estate
The first thing that you must know about commercial real estate is that it comes with a lot of liabilities, as well as risks – yes, even more than residential real estate. Now, this isn’t because they’re larger, but because they will house/employ more individuals. Hence, there will be specific laws revolving around how you could use the building that you’re thinking about purchasing, including whether or not you’ll be able to rent it out to people or organizations.
Since you’ll have to consider all of the things we’ve mentioned, as well as how viable the location is, whether there are any building restrictions at the location, and, of course, how safe the area is, it’s best if you hire an attorney that’ll consider all of these things with you and that’ll tell you whether or not it’s a suitable investment for you. This means that you’ll make the most out of it, without having major problems in the future.
4. If You Want to Make The Procedure Simpler
Lastly, if you want to make the entire procedure simpler and if you want to guarantee that there are no hindrances along the way, you should hire a lawyer without contemplating too much about it. There is so much they can do for you, all of which will help you during the process. For example, the person you hire will do a title search for the property you might want to buy, and by doing so, they’ll guarantee that there are no liens attached to the home and they’ll be capable of confirming the real owner of the estate.
However, besides performing these things, they’ll also deal with all the documents and paperwork, they could write an insurance policy, and they’ll also read all the contracts and papers instead of you. They’ll be present at the closing too and if any disputes happen during the process, they’ll be able to quickly solve them instead of you. Hence, if you want to make everything simpler for yourself, go ahead and start looking for an experienced attorney that’ll help you with your case.
Even if the state you reside in doesn’t require you to hire a real estate lawyer when purchasing a property, you should seriously consider it. Not only will they make the entire process quicker and simpler, but they’ll guarantee that the investment you’re planning on making comes without any issues and hindrances that could occur in the future.
Since you’re now well aware of when you should hire legal representation when acquiring real estate, you might not want to lose time reading articles similar to this one. Instead, if you don’t have a lawyer, you should start looking for one that’ll make purchasing a house an easy and simple task.