Q: I'm getting ready to buy a house. Do I need to hire an attorney?

Buying a home is expensive. Between the deposit, the down payment, and the closing costs, many prospective homebuyers believe they can't afford to hire an attorney. But the truth is that they can't afford not to. A real estate attorney protects his client's investment in the property and makes sure the buyer gets what he bargained for. Without legal counsel, a buyer may unknowingly purchase a house for more than it is really worth or may be forced to forfeit a sizeable deposit to an unscrupulous seller.

Some title insurance companies and mortgage lenders actually require a buyer to use an attorney. This is especially true in Connecticut. The attorney is expected to verify that title is good, that there are no outstanding liens against the property, and that the deal will close as anticipated.

The primary functions of a buyer's attorney
If you're buying a home or another piece of property, your attorney should:
  • Prepare and register all of the necessary legal documentation
  • Review the terms of your mortgage and confirm that the rates and fees match those that were quoted to you and are reasonable and fair
  • Check to make sure that there are no existing liens, mortgages, or restrictions on the property that will impede your use of it
  • Arrange title insurance protection to cover you from financial losses due to defects in the title of your property
  • Scrutinize every aspect of the sales agreement to ensure that its provisions are fair and, wherever possible, favorable to you
  • Help you read through and understand the provisions of the sales agreement, including how and when you will take title of the property
  • Attend the closing and review all the papers you will be required to sign
Q: Do sellers need attorneys, too?

Sellers can benefit immensely from the use of an attorney. This is especially true if the buyer has hired a lawyer. Buyers and sellers have differing (and often opposite) interests, and a buyer's attorney may try to coax the unwary and unrepresented seller into signing away some of his important rights. A seller's attorney will also protect the seller's interest by anticipating legal issues before they arise and deftly dealing with any issues that surface before (or after) the closing.

The primary functions of a seller's attorney
If you are selling a home or another piece of property, your attorney should:
  • Prepare and register all of the necessary legal documentation
  • Deal with any title issues or property restrictions as they are discovered and resolve any disputes between you and the buyer
  • Scrutinize every aspect of the sales agreement to ensure that its provisions are fair and, wherever possible, favorable to you
  • Help you read through and understand the provisions of the sales agreement
  • Attend the closing and review all the papers you will be required to sign
  • Arrange for the transfer of security deposits
Q: My real estate agent said I don't need an attorney and that we can do everything ourselves. Is this true?

There are non-legal entities that claim they can provide all of the legal services a buyer or seller will need. Buyers and sellers tempted to save a few dollars this way should remember that attorneys' actions are governed by a strict code of conduct and their mistakes are covered by professional insurance. This may not be true of people in other professions. Taking a "do-it-yourself" approach to home buying is not advisable, either. Though legal form templates and "how-to" books are widely available, the laws governing real estate transactions differ from state to state.

Ultimately, it's advisable to make the costs of a good real estate attorney a non-issue by building the fees into any deal right up front. The value of a good long-term relationship with a competent and reliable attorney can be worth far more than the fees you will pay for his or her service. The cost of a qualified attorney is the proverbial "drop in the bucket" compared to the large expenditures you will be making for bank fees, realtor fees, and conveyance costs. Unless you have formal legal training, don’t be penny wise and pound foolish by trying to handle this type of transaction yourself.
If you'd like to schedule a free, no-obligation consultation in one of our offices you can call toll free at 888-336-1212
between 9:00 and 5:30 Monday through Friday, or click here to use our interactive calendar.