Purchasing your first home will probably be one of the largest and most significant purchases that you will make in your lifetime. But such investment involves special and unique legal issues that you wouldn’t come across in other transitions. That is why most people opt for hiring a lawyer to ensure that all legal aspects of this transaction are dealt with properly. So if you are debating whether you should hire a lawyer to help you with buying a house, here are reasons why you should commit to it.
Know What the Law Says
When it comes to real estate laws, every state has its own set. But for the most part, people don’t think that legal help isn’t required. On the other hand, having legal help when it comes to preparing the purchase contracts or closing the deal is something that is advisable. But in some states such as New York, you can’t close on the house if you don’t have a lawyer to do all the paperwork that involves purchasing a home.
Don’t Use the Seller’s Agent
One of the most common things people make a mistake with is going with the seller’s agent to do all the work for you also. You should do your best to keep the seller’s agent from taking over the whole process. It is not uncommon for the seller’s agent to try and pressure you into letting them represent you also as a dual agency. But what they won’t tell you is that that will primarily benefit the seller, not you. Therefore, if you want to avoid any uncomfortable situations., make sure that you are hiring your own legal representative.
Educate Yourself About Buying Real Estate
Even if you end up deciding that you will hire a lawyer to help you out with purchasing a home, it is best if you learn as much as you can about the whole process that you will be involved in. make sure that you are researching the market value of different homes to ensure that you are not falling for over-aggressive agents who will make you bid higher than you actually need, just to get more money out of you. Another thigh that it will help you with is preventing any major misunderstandings as well as being overly stressed because you don’t understand what is happening.
Buying a Home
Normally, when you are purchasing a house, the seller will be in a contract with a real estate agent which is usually a written contract. So when a broker is finding a potential buyer they will do the negotiations with the agent, instead of you personally being in contact with the seller. Once they get to a formal agreement the buyer and the seller will form a written contract for selling purposes and that is why you should have a lawyer so they can do it. This contract is also known as the purchase agreement.
In most cases, the whole process will follow these steps:
- The buyer will need to have a commitment for financing\
- A title search
- The property transfer.
Even though this process might seem like it is simple, when you don’t have the help of a lawyer there can be some serious consequences that can lead to unwise disastrous investments.
Avoid Any Vague or Unclear Terms
Hiring a lawyer will help you avoid having any issues with purchasing a house. For instance, the person who is selling their home might have signed a brokerage agreement that doesn’t deal with many legal issues. This is something that happens often, as many realtors will use standard forms that don’t cover all situations. Since there is an absence of agreement a seller can become liable to pay the brokerage commissions that the person who is selling the house made. That is why you need to have a lawyer to avoid these kinds of issues from happening. It will potentially help you avoid any catastrophes from occurring and losing money.
Consider a Consultation
Even if you don’t think that you don’t need a lawyer when you are negotiating, you might want to consult with a lawyer to ensure that all your legal questions are answered such as any real estate transitions or tax consequences. What people don’t realise often is that the tax consequences are of crucial importance. It is always better to visit a trusted company such as the David Kam & Co Solicitors to have all the questions answered and see if there are any potential issues that might come down the road and be safe.
The single most important document in this whole process is the purchase agreement. Even though there are standard forms that can just be printed off the internet, having professional health to explain every point of the contract as well as making any additional changes that will reflect your desires. There are many issues that a lawyer needs to address when it comes to the purchase agreement. You need to ensure that you are protected from anything that might cost you more money once you close such as buying a property that has termites, asbestos or toxic things in it as well as what happens if the closing does not take place and what happens with the down payment that you made. You need to ensure that all the possible outcomes are covered and have a positive answer that works for you. When you are purchasing a home you need to ensure that you are creating an agreement that is not only carefully worded but also contains all the points that both parties comply with. If you are a first-time buyer it can be quite hard to do without a lawyer as there are a lot of legal things that you need to go over.
They Will Help You With The Title Search
Once you get the purchase agreement signed, the state of the seller’s title to the said property needs to be established. In most cases, the title searcher is ordered from the title insurance company. Some state the title instance is not a typical thing, while in others the lawyer will be essential as they will have to review the status and the policy. If you live in a state where title insurance is customary you will need to have a lawyer help you revise the title search and explain all the exceptions. A lawyer will also help you determine if the legal description is correct and tell you if there are some problems when it comes to the prior owners. What you need to realise is that a lawyer will only be able to give you perspective and not make the decision for you. A lawyer will be able to explain to you whether zoning will prohibit anything or if your improvement plans violate any zoning ordinances.
Why You Should Have a Lawyer At The Closing
As you can guess, the most important event in the whole process is the closing, therefore it needs to be carefully inspected and every step of it needs to be perfect. You must have all the closing papers prepared and looked over. Another thing that you will need is the closing statement that will be prepared before the closing indicating all the credits to the buyer or seller. That is one of the biggest reasons why you should hire a lawyer to ensure all the paperwork is done properly. They will not only explain the whole situation so you understand what is happening every step of the way but you will also be educated on all the costs that come with closing in on a home. Once you have signed the paperwork your lawyer will make sure that the documents are properly executed. A lawyer will also make sure to check if there are any last-minute adjustments when it comes to taxes or delivering possessions. If you are without a lawyer at this point in buying a house you will put yourself at risk. But it is important that you realise that a lawyer is there to provide you with legal help and not make the decision for you. In the long run, you are better off having a legal specialist by your side than losing money over something that you didn’t read in the closing papers.
Another really important thing that you need to consider is that a lawyer will help with stopping any sort of discrimination during the buying process, and you shouldn’t let others tell you that you need to spend a ton of money on a fancy lawyer for these purposes. Make sure that you are hiring someone with who you are comfortable and that they fit in your budget. Law is something that exists for everyone regardless of your budget. As you can tell, there are many benefits that come with hiring a lawyer to have by your side when you are purchasing a house. They will not only guide you, but they will also protect your interests as well as ensure that all the transitions are clean and legal and the rules are being followed.